Today (Mar 12), the market for meals in China is shown as follows:

Soybean meal: U.S. soybean futures closed slightly higher on Thursday on an uncertain outlook in South American soybean production and bolstered by tight supply in global vegetable oils. Meal futures are modestly higher on China’s Dalian Commodity Exchange today. Spot soybean meal prices steadily fluctuate by 10-30 CNY at 3,270-3,350 CNY/tonne, in tepid trade. (Tianjin 3340, Shandong 3300-3310, Jiangsu 3300-3320, Dongguan 3270-3300, and Guangxi 3330-3350.) 

Soybean meal supply is not affected by low soybean crush in China now. Meanwhile, hog stocks have been on a decline as producers are slow in replenishing due to the African swine fever in some provinces and also low hog prices. And the consumption of poultry meat is also seasonally slack, and aquaculture has also not get started. Soybean meal inventories keep building up amid a slow pace in delivery, and some mills have been choked up with swelling inventories, especially in south China. Soybean meal prices have weak upward momentum now in spite of smaller loss today, and short-term prices may follow futures to fluctuate and adjust. If Dalian meal futures continue improving, buyers, if out of stock, are suggested to buy dips for small replenishment and remain cautious in chasing after high prices.

Rapeseed meal: U.S. soybean futures closed up on Thursday. Rapeseed meal futures on Zhengzhou Commodity Exchange stay above the previous close despite some declines. Spot rapeseed meal is offered at 2,620-2,720 CNY/tonne in coastal regions, an increase of 10 CNY/tonne, in tepid trade. Tightening supplies of Canadian old rapeseed spark higher cost of importing rapeseed, leading to continued losses on crush margins. This has affected crusher’s positivity in making purchases. Besides, many crushing mills are idled by a shortfall in soybeans during the month of March and April, offering support to rapeseed meal market. However, farmers are not active in replenishing hog stocks due to a resurgence of African swine fever in some regions. And aquaculture has yet to begin at the moment. These have led to a subdued trade in meal products, weighing on meals prices tentatively. It is projected that short-term rapeseed meal prices may move with fluctuations. Buyers can wait for low and stable prices to make proper replenishment.

Imported fishmeal: Imported fishmeal prices steady in China today and can be traded through negotiation. Peruvian Standard SD with 65% protein content is 9,800-10,100 CNY/tonne; Peruvian higher-quality SD with 65% protein content is 10,200-10,600 CNY/tonne; Peruvian higher-quality SD with 67% protein content is 10,800-11,000 CNY/tonne; and Peruvian Super Prime SD with 68% protein content is 11,300-11,500 CNY/tonne. China’s fishmeal stocks keep rising with the arrival of fresh cargoes, whilst feed demand is small now due to slack aquaculture season and low hog stocks. Meanwhile, a slow pace in new-season pre-sales and a better picture in fishing in southern Peru is weighing on prices, so that local manufacturers have cut down prices. As such, Chinese port traders are also under pressure. Overall, domestic fishmeal market is expected to steady with a slight decline in the near term.

Stocks at ports: Dalian 9,350 tonnes, Tianjin 650 tonnes, Shanghai 40,310 tonnes, Huangpu 41,280 tonnes, Fuzhou 14,450 tonnes, Fangchenggang 1,020 tonnes and 4,080 tonnes at other ports.

FOB quotes from foreign markets today: Apr/May shipments are quoted lower by 30 USD at 1,410 USD/tonne for Peruvian Standard with 65% protein content and at 1,630 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 stay stable with a fluctuation of 20-30 CNY/tonne today. U.S. soybean futures closed higher on Thursday. Meal futures also post modest gains on Dalian Commodity Exchange today. Spot soybean meal fluctuates by 10-30 CNY/tonne in coastal regions. Hog prices keep moving down due to a resurgence of African swine fever in some regions, and farmers are not active in replenishing hog stocks. As a result, hog inventories have consecutively declined. Also, consumption for poultry meat is low, and aquaculture has not begun yet for the moment. Due to a slow recovery in trading, soybean meal inventories have uninterruptedly increased and even faced overhang in some regions. These are negative for meals prices. Besides, cottonseed meal trade is tepid currently result from a lack of rigid demand, which curbs its market tentatively. Moreover, most of cottonseed oil plants have yet to resume the operation, bringing some support to cottonseed meal market. Therefore, short-term cottonseed meal price may follow soybean meal to fluctuate.

(USD $1=CNY ¥6.48)