Today (Mar 16), the market for meals in China is shown as follows:

Soybean meal: U.S. soybean futures closed higher on Monday. Meal futures open high and post slight gains on China’s Dalian Commodity Exchange today, but pare gains in afternoon session. Spot soybean meal prices steadily fluctuate by 10-30 CNY at 3,260-3,320 CNY/tonne, in tepid trade. (Tianjin 3320, Shandong 3270-3280, Jiangsu 3270-3300, Dongguan 3260-3280, and Guangxi 3270-3290.) 

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. Soybean meal market performance is thus less than satisfactory and some millers suspend production due to swelling meal inventories, especially in south China. Besides, traders are active in firm oils market. These are weighing on meal prices. But China’s soybean crush fell again to 1.44 mln tonnes due to negative crush margins and a lack of beans, so soybean meal stocks also reduced 12% on week to 740,000 tonnes. Overall, soybean meal prices will fluctuate to go weakening in the short term.

Rapeseed meal: U.S. soybean futures closed up on Monday as heavy rain in Brazil continued causing soybean harvest delay. Rapeseed meal futures extend gains with high opens on Zhengzhou Commodity Exchange today. Spot rapeseed meal is offered at 2,710-2,790 CNY/tonne in coastal regions, an increase of 40-60 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, giving a boost 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 totally 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 the high level.

Imported fishmeal: Imported fishmeal prices steady in China today and can be traded through negotiation. Peruvian Standard SD with 65% protein content is 9,700-10,000 CNY/tonne; Peruvian higher-quality SD with 65% protein content is 10,200-10,500 CNY/tonne; Peruvian higher-quality SD with 67% protein content is 10,700-10,900 CNY/tonne; and Peruvian Super Prime SD with 68% protein content is 11,200-11,400 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 9,760 tonnes, Tianjin 670 tonnes, Shanghai 42,520 tonnes, Huangpu 42,340 tonnes, Fuzhou 14,640 tonnes, Fangchenggang 1,040 tonnes and 4,225 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 50-100 CNY/tonne today. 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 been 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 crushing mills suspend the processing due to overhang of soybean meal, which depresses meals prices. Furthermore, investors take profit from selling meals and buying oils due to the strength on oils. 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)