Today (Mar 17), the market for meals in China is shown as follows:

Soybean meal: U.S. soybean futures rose on Tuesday, bolstered by concerns over the weather in South America. Meal futures open high and rise on China’s Dalian Commodity Exchange today, pushed by sharp loss in Dalian oils futures and the end of the arbitrage after an official release said that China will sell over 20,000 tonnes of imported crude soybean oil on March 19. Spot soybean meal prices go up 10-40 CNY to 3,300-3,350 CNY/tonne, in tepid trade. (Tianjin 3350, Shandong 3300-3330, Jiangsu 3300-3320, Dongguan 3300-3320, and Guangxi 3320-3330.) 

China’s soybean meal stocks declined by 12% on week to 740,000 tonnes, as soybean crush fell to 1.44 mln tonnes last week for a lack of beans in some mills, well below a normal level of 1.8 mln tonnes. Meal price is thus bolstered to rally. But hog producers are inactive in replenishing hog stocks under the influence of the African swine fever. Meanwhile, poultry stocks have not recovered and aquaculture is still in slack season. Soybean meal market has been in tepid trade after the festival, and some millers have to suspend the crush due to swelling meal inventories, especially in south China. This will constrain rises in soybean meal prices in the short term, and soybean meal market may fluctuate frequently.

Rapeseed meal: U.S. soybean futures closed up on Tuesday. China announced to sell the crude soybean oil imported in 2019 totaling 20,875 tonnes, which was scheduled for March 19. Oils futures collapse weighed by the news, which leads to a profit-taking. These have together pushed domestic meals futures to go up after opening high today. Spot rapeseed meal is offered at 2,760-2,840 CNY/tonne in coastal regions, an increase of 30-50 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, which limits the upside for meals prices tentatively. It is projected that rapeseed meal prices will fluctuate to stay strong on the whole.

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. Port fishmeal stocks continue rising up to nearly 120,000 tonnes in China now due to the arrivals of fresh cargoes, whilst feed demand is small now due to slack aquaculture season and low hog stocks. As such, port traders are expected to cut down fishmeal prices slightly in the near term.

Stocks at ports: Dalian 9,970 tonnes, Tianjin 750 tonnes, Shanghai 42,720 tonnes, Huangpu 42,510 tonnes, Fuzhou 14,760 tonnes, Fangchenggang 1,020 tonnes and 4,245 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 CNY/tonne today. Farmers are not active in replenishing hog stocks amid the resurgence of African swine fever. Meanwhile, poultry inventory has not been rebuilt yet. Plus, aquaculture has not begun yet for the moment. Consequently, some soybean crushing mills suspend the processing as soybean meal stocks swell, cracking down soybean meal price. Besides, cottonseed meal trade is tepid currently result from a lack of rigid demand, which curbs its market tentatively. However, U.S. soybean futures finished higher on Tuesday, sending Dalian oils futures to plunge today. As a result, Dalian meals futures are pushed to further rise after high opens today. Spot soybean meal is 10-40 CNY/tonne higher at coastal regions. Additionally, most of cottonseed oil plants are idled at present, bringing some support to cottonseed meal market. Therefore, short-term cottonseed meal price will likely follow soybean meal to move with fluctuations.

(USD $1=CNY ¥6.50)