Today (Mar 23), the market for meals in China is shown as follows:

Soybean meal: CBOT's most-active soyoil futures contract hit the limit-up on the United States' recent green fuel push, and soybean futures closed higher on Monday. But meal futures open low and decline on China’s Dalian Commodity Exchange today as strong gains in oils futures bolster long oils positions and short meal positions. Spot soybean meal prices go down 30-60 CNY to 3,190-3,270 CNY/tonne, in tepid trade. (Tianjin 3270, Shandong 3200-3240, Jiangsu 3190-3230, Dongguan 3190-3200, and Guangxi 3210-3240.) 

Producers are cautious in replenishing hog stocks under the influence of the African swine fever, and aquaculture has not come to full swing. Feed manufacturers are cautious and soybean meal market has been in thin trade recently. Soybean meal stocks thus edged up 0.1% weekly to 740,000 tonnes in coastal regions, and some millers are still facing swelling inventory. In addition, oils market is strong, which is also bearish to meal prices. But operation rates for soybean crush remain low in March due to small soybean imports in February and March, while soybean meal sales are brisk for March and April, which are constraining the decline in price. Short-term soybean meal prices will follow futures to adjust, and buyers can wait for low and stable prices to make replenishment in small batch.

Rapeseed meal: U.S. soybean futures closed higher on Monday. Oils futures staged strong gains, triggering profit-taking from large buying. Meals futures fall back today on China’s domestic exchanges. Spot rapeseed meal is offered at 2,670-2,760 CNY/tonne in coastal regions, a decrease of 60-70 CNY/tonne, in tepid trade. Farmers are reluctant to replenish hog stocks due to a resurgence of African swine fever in some regions, and aquaculture has not been in full swing at the moment, which has led to a subdued trade in meal products. In this case, soybean meal stocks have increased to 740,000 tonnes, and rapeseed meal inventories have grown by 6% to 680,000 tonnes. These are bearish for meals prices. However, continued losses on crush margins for rapeseed futures have affected crusher’s positivity in making purchases. Besides, many crushing mills are idled by a shortfall in soybeans during March-April, giving a boost to rapeseed meal market. It is projected that short-term rapeseed meal prices will likely fluctuate at a narrow range.

Imported fishmeal: Imported fishmeal prices decline in China today and can be traded through negotiation. Peruvian Standard SD with 65% protein content is 9,600-9,900 CNY/tonne, down 100-200 CNY; Peruvian higher-quality SD with 65% protein content is 10,000-10,400 CNY/tonne, down 100-200 CNY; Peruvian higher-quality SD with 67% protein content is 10,500-10,800 CNY/tonne, down 100-200 CNY; and Peruvian Super Prime SD with 68% protein content is 11,000-11,300 CNY/tonne, down 100-200 CNY. 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. Most traders tend to make shipments at bidding prices. Overall, domestic fishmeal market is predicted to show a weak trend to decline in the near term.

Stocks at ports: Dalian 10,630 tonnes, Tianjin 1,020 tonnes, Shanghai 44,510 tonnes, Huangpu 46,640 tonnes, Fuzhou 14,870 tonnes, Fangchenggang 1,000 tonnes and 4,235 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. U.S. soybean futures finished higher on Monday. But oils futures post wild gains, causing profit taking from large buying. Meal futures fall back with low opens today on Dalian Commodity Exchange. Spot soybean meal is offered 30-60 CNY/tonne lower at coastal regions. Farmers are cautious in replenishing hog stocks amid the resurgence of African swine fever. Meanwhile, poultry inventory has not been rebuilt yet. Plus, aquaculture has not been in full swing for the moment, so feed enterprises are wary of making purchases. Consequently, soybean meal has been in light trading in recent weeks, and soybean meal stocks stop falling and shift to stabilize, which weighs on meals prices. Besides, cottonseed meal trade is tepid currently result from a lack of rigid demand, which curbs its market tentatively. 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 still move with fluctuations.

(USD $1=CNY ¥6.50)