Today (Feb 3), the market for meals in China is shown as follows:

Soybean meal: U.S. soybean futures closed lower on Tuesday, and meal futures continue declining on China’s Dalian Commodity Exchange today. Spot soybean meal prices go down 30-60 CNY at 3,570-3,740 CNY/tonne in tepid trade. (Tianjin 3740, Shandong 3680-3700, Jiangsu 3620-3640, Dongguan 3570-3590, and Guangxi 3580-3600.)

U.S. soybean futures fell for sessions, weighed down by several consecutive lower-than-expected export reports and crop beneficial weather in South America. Dalian meal futures also expand losses due to short selling and fund recouping with the approaching of the Spring Festival. And a cluster of poultry and livestock will be sold ahead of the Chinese Lunar New Year, aquaculture has come to a standstill in winter and downstream buyers have almost completed replenishment for the festival, so soybean meal market has been in tepid trade for days. Meanwhile, high soybean crush will also contribute to build up soybean meal stocks. These are bearish to meal prices. But soybean import cost remains high at present, and some millers have sold out soybean meal for February. Besides, soybean loading is slow in Brazil, so that monthly soybean arrivals are forecast to be only 6.3-6.4 mln tonnes in February and March. Short-term soybean meal prices may continue following futures to fluctuate frequently to adjust, and buyers can wait for low and stable prices to make appropriate replenishment.

Rapeseed meal: Affected by strong USD and as Brazil escalated soybean harvest, U.S. soybean futures continued falling on Tuesday. And meal futures on China’s exchanges also decline today. Spot rapeseed meal is offered at 2,620-2,770 CNY/tonne in coastal regions today, a decrease of 40-60 CNY/tonne, in tepid trade. At the moment, livestock and poultry are slaughtered intensively, and aquaculture has basically ceased. Moreover, downstream buyers have almost completed the stockpiling before the holiday. Consequently, the demand for meals gets poor, leading to a subdued trade in rapeseed meal. Plus, investors are repatriating their capital as the Spring Festival is coming soon, dragging down rapeseed meal price. However, soybean meal stocks drop distinctly, and most of oil plants plan to halt the operation due to the upcoming Spring Festival, so they have strong intention to prop up price. In a hybrid of the bull and the bear, short-term rapeseed meal market is projected to follow futures to fluctuate.

Imported fishmeal: Imported fishmeal prices keep firm today and can be traded through negotiation. Peruvian Standard SD with 65% protein content is 10,100-10,600 CNY/tonne; Peruvian higher-quality SD with 65% protein content is 10,500-11,100 CNY/tonne; Peruvian higher-quality SD with 67% protein content is 11,100-11,500 CNY/tonne; and Peruvian Super Prime SD with 68% protein content is 11,600-12,000 CNY/tonne. Fishmeal stocks will continue reducing at domestic ports before the Lunar New Year, and offers from Peruvian markets also keep firm, so traders have sentiment to support prices. But the demand for fishmeal is subdued as aquaculture turns slack in winter, and the market is in reducing trade as most feed plants have made replenishment with the approaching of the lunar new year, which together curb the upward space in domestic fishmeal market. In the short run, domestic fishmeal market is expected to steady with slight adjustments.

Stocks at ports: Dalian 2,260 tonnes, Tianjin 280 tonnes, Shanghai 4,200 tonnes, Huangpu 34,900 tonnes, Fuzhou 10,980 tonnes, Fangchenggang 1,030 tonnes and 2,100 tonnes at other ports.

FOB quotes from foreign markets today: Feb/Mar shipments are quoted steadily at 1,430 USD/tonne for Peruvian Standard with 65% protein content and at 1,650 USD/tonne for Peruvian super with 68% protein content. Chilean Standard with 65% protein content is quoted steadily at 1,430 USD/tonne, and super with 68% protein content at 1,600 USD/tonne.

Cottonseed meal: Cottonseed meal prices mostly stay stable and partly drop by 20-100 CNY/tonne in China today. U.S. soybean futures ended lower on Tuesday on lower-than-anticipated export sales and favorable weather condition in South America. And Dalian meal futures also keep falling today. Spot soybean meal declines by 30-60 CNY/tonne in coastal regions. With the Lunar New Year coming soon, livestock and poultry are slaughtered intensively for the moment. Meanwhile, aquaculture has basically ceased, and downstream buyers are about to end the stockpiling before the holiday. In recent days, soybean meal trading is tepid, but soybean crush still stays high. All these factors are bearish for meals prices. Besides, the slow recovering of hog capacity leads to a subdued trade of cottonseed meal, thereby cracking down its price. But cottonseed cost remains high, which supports cottonseed meal as well. It is projected that short-term cottonseed meal market will still follow soybean to move with fluctuations.

(USD $1=CNY ¥6.47)