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

Soybean meal: U.S. soybean futures surged on Tuesday on strong soybean crushing demand in the U.S. and as hot and dry weather was stressing soybean crops in Argentina and rains were delaying the harvest in Brazil. Meal futures open high and climb on China’s Dalian Commodity Exchange today. Spot soybean meal prices settle up 20-40 CNY at 3,580-3,700 CNY/tonne. (Tianjin 3600, Shandong 3550-3620, Jiangsu 3560-3580, Dongguan 3580-3600, and Guangxi 3670-3700.)

Crush margins for soybeans post heavy loss on Dalian. And many domestic oil mills will suspend production for a lack of soybeans in March and April as China’s soybean imports are forecast to be only 95 vessels or 6.2 mln tonnes. Meanwhile, some millers have also sold a large portion of March soybean meal contracts and choose to suspend offers to support prices. But Chinese producers rushed to sell off finished pigs in some regions as the African swine fever is reported occasionally in January and February (especially in Hebei and east China), and they are slow in resuming stocks due to a weak price trend after the festival, so that hog stocks declined for two consecutive months. And aquaculture has also not get started yet. Hence, soybean meal stocks have increased to 740,000 tonnes under thin trade after the festival, and some mills have started to quicken up the delivery. Short-term soybean meal prices may follow Dalian meal to fluctuate to adjust, and buyers can wait for low and stable prices to make appropriate replenishment.

Rapeseed meal: U.S. soybean futures finished higher on Tuesday on concerns over unfavorable weather condition for crop in Argentina and Brazil and as US soybean supplies are still tight amid robust crushing demand. Meal futures also extend gains after opening high on China’s exchanges. Spot rapeseed meal is offered at 2,770-2,930 CNY/tonne in coastal regions, an increase of 30-60 CNY/tonne, in tepid trade.

Net crush margins for U.S. soybean futures have been negative currently. And the soybean arrivals in March are projected only 95 cargoes or 6.2 mln tonnes. Consequently, many oil plants could suspend the processing during March and April as soybeans are in short supply. Thereby, soybean meal prices keep strengthening, which buoys rapeseed meal market. Nevertheless, market demand remains weak as the Lunar New Year has just passed, leading to a subdued trade. In this case, soybean meal stocks have increased by 7% to 740,000 tonnes, dragging down meals prices. Dominated by high cost result from price hike in U.S. soybeans, the overall rapeseed meal price will continue fluctuating to stay strong.

Imported fishmeal: Imported fishmeal prices steady with a decline in China today and can be traded through negotiation. Peruvian Standard SD with 65% protein content is 9,900-10,200 CNY/tonne, down 100 CNY/tonne from yesterday; Peruvian higher-quality SD with 65% protein content is 10,300-10,700 CNY/tonne, down 100 CNY; Peruvian higher-quality SD with 67% protein content is 10,900-11,100 CNY/tonne, down 100 CNY; and Peruvian Super Prime SD with 68% protein content is 11,400-11,600 CNY/tonne, down 100 CNY. China’s fishmeal stocks are picking up at a brisker pace with new cargoes arriving at ports currently, and domestic aquatic feed demand is still sluggish at present, so that domestic traders show weak sentiment to support prices. However, Peruvian offers keep firm as manufacturers have been pre-selling new-season fishmeal at a brisk pace, which is lending support to domestic traders and may limit price declines. Domestic fishmeal market is predicted to steady with slight adjustments in the near term.

Stocks at ports: Dalian 7,230 tonnes, Tianjin 630 tonnes, Shanghai 31,870 tonnes, Huangpu 42,250 tonnes, Fuzhou 14,060 tonnes, Fangchenggang 1,000 tonnes and 4,120 tonnes at other ports.

FOB quotes from foreign markets today: Mar/Apr shipments are quoted at 1,460 USD/tonne for Peruvian Standard with 65% protein content and at 1,680 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 in China partly stay stable and partly drop by 50-150 CNY/tonne today. Hog stocks have consecutively declined for two months due to the resurgence of African swine fever during the month of January and February, so farmers are not active in replenishing stocks. Also, aquaculture has not begun yet for the moment. Soybean meal stockpiles in coastal crushing mills have increased to 740,000 tonnes. These have weighed on meals prices. Besides, market demand is still slacked as Spring Festival has just passed, which leads a tepid trade. However, U.S. soybean futures closed up on Tuesday on brisk crushing demand. Meal futures also open high and extend gains on Dalian Commodity Exchange today. Spot soybean meal is offered 20-40 CNY/tonne higher in coastal regions. Furthermore, most of cottonseed oil plants have yet to resume the operation, bringing some support to cottonseed meal market. It is predicted that cottonseed meal market will fluctuate in the near term but still maintain the high level on the whole.

(USD $1=CNY ¥6.46)