Today (Mar 15), the market for meals in China is shown as follows:

Soybean meal: U.S. soybean futures closed lower last Friday as Brazilian soybean production was revised upward by 1% to 135.1 mln tonnes and on the absence of Chinese buyers after the Lunar New Year in U.S. soybean market. Meal futures open low and decline on China’s Dalian Commodity Exchange today. Spot soybean meal prices go down 20-50 CNY at 3,270-3,340 CNY/tonne, in tepid trade. (Tianjin 3340, Shandong 3270-3290, Jiangsu 3290-3300, Dongguan 3270-3300, and Guangxi 3280-3300.) 

The resurgence of the African swine fever in several provinces is fueling market concerns, so that farmers are inactive in replenishing hog stocks. Moreover, poultry stocks have not recovered and aquaculture is still in slack season. The market demand for soybean meal is unusually weak, and some millers are facing swelling meal inventories, especially in south China, so that there are actively in quickening up the delivery. This is curbing meal prices. But the overall soybean meal stocks are slightly lower this week as soybean crush fell to 1.44 mln tonnes last week, which was way below the normal level of 1.80 mln tonnes. And crush margins for soybeans are at heavy loss now. In the short term, soybean meal prices will fluctuate to go weakening.

Rapeseed meal: Brazilian soybean production estimate was revised 1% higher to 135.1 mln tonnes, and Chinese buyers were absent from U.S. soybean market after the Lunar New Year. U.S. soybean futures closed down on Friday. Rapeseed meal futures fluctuate to grow on Zhengzhou Commodity Exchange today. Spot rapeseed meal is offered at 2,650-2,740 CNY/tonne in coastal regions, a fluctuation of 10-20 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 will fluctuate at a narrow range. Buyers can make proper replenishment upon low price.

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 9,700-10,000 CNY/tonne, down 100 CNY from last Friday; Peruvian higher-quality SD with 65% protein content is 10,200-10,500 CNY/tonne, down 100 CNY; Peruvian higher-quality SD with 67% protein content is 10,700-10,900 CNY/tonne, down 100 CNY; and Peruvian Super Prime SD with 68% protein content is 11,200-11,400 CNY/tonne, down 100 CNY. 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 9,560 tonnes, Tianjin 690 tonnes, Shanghai 41,780 tonnes, Huangpu 41,910 tonnes, Fuzhou 14,630 tonnes, Fangchenggang 1,060 tonnes and 4,315 tonnes at other ports.

FOB quotes from foreign markets today: Apr/May shipments are quoted steadily 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 partial decrease of 20-100 CNY/tonne today. U.S. soybean futures closed lower on Friday. Meal futures also edge down after low opens on Dalian Commodity Exchange today. Spot soybean meal declines by 20-50 CNY/tonne in coastal regions. A resurgence of African swine fever in many provinces has raised market concerns, and farmers are not active in replenishing hog stocks. Meanwhile, poultry inventory has not rebuilt yet. Plus, aquaculture has not begun yet for the moment. Consequently, market demand is unusually sluggish now, leading to an uninterrupted increase in soybean meal stockpiles. Moreover, some crushers suspend the processing due to overhang of soybean meal, which depresses meals prices. Besides, cottonseed meal trade is tepid currently result from a lack of rigid demand, which curbs its market tentatively. And most of cottonseed oil plants are idled at present, bringing some support to cottonseed meal market. Therefore, cottonseed meal price will likely follow soybean meal to fluctuate weakly in a short term and still carry the potential to moderately rebound afterwards.

(USD $1=CNY ¥6.50)