Today (Mar 25), the market for meals in China is shown as follows:

Soybean meal: U.S. soybean futures further advanced on Wednesday on a tighter supply outlook as the United States’ green energy push would bolster the demand for biodiesel. Meal futures open high and rise on China’s Dalian Commodity Exchange today. Spot soybean meal prices go up 20-40 CNY to 3,260-3,330 CNY/tonne, in tepid trade. (Tianjin 3330, Shandong 3270-3290, Jiangsu 3240-3290, Dongguan 3260-3320, and Guangxi 3260-3280.) 

Crush margins for imported soybeans are at heavy loss on Dalian exchange now. Soybean crush remains at a low level in March and April for a lack of beans, and some millers have signed a lot of pre-sales contracts for April. And aquaculture farmers are expected to pick up demand under warmer weather. Domestic oil millers now are supporting meal prices. But China’s monthly soybean imports are forecast to surpass 10 mln tonnes in May-July, for Brazilian producers will ramp up marketing and exporting now that harvests are half completed. And Chinese producers are cautious in replenishing hog stocks under the influence of the African swine fever, and oils market is in strong performance. These are bearish to meal prices. Short-term soybean meal prices will have limited rises and may fluctuate frequently. Buyers are suggested not to chase after excessive gains.

Rapeseed meal: U.S. green energy push will boost demand for soybean oil, raising market concerns over soybean supply. U.S. soybean futures ended higher on Wednesday. Meals futures further rise after opening high today on China’s domestic exchanges. Spot rapeseed meal is offered at 2,730-2,800 CNY/tonne in coastal regions, an increase of 10-20 CNY/tonne, in tepid trade. Continued losses on crush margins for rapeseed futures have affected crusher’s positivity in making further purchases of rapeseed cargoes. Also, soybean arrivals during February and March are lower as crush margins for imported soybean futures on DCE have been negative. Accordingly, many crushing mills are idled by a shortfall in soybeans in March-April. With weather warming up across the country, demand from aquaculture is poised to recover. In this case, oil plants have strong intention to lift price, which supports rapeseed meal market. However, farmers are reluctant to replenish hog stocks due to a resurgence of African swine fever in some regions, which has led to a subdued trade in meal products. The stockpiles of soybean meal and rapeseed meal have climbed up, so mills are urging deliveries, weighing on meals prices. It is projected that rapeseed meal market may fluctuate at a narrow range temporarily.

Imported fishmeal: Imported fishmeal prices steady in China today and can be traded through negotiation. Peruvian Standard SD with 65% protein content is 9,600-9,900 CNY/tonne; Peruvian higher-quality SD with 65% protein content is 10,000-10,400 CNY/tonne; Peruvian higher-quality SD with 67% protein content is 10,500-10,800 CNY/tonne; and Peruvian Super Prime SD with 68% protein content is 11,000-11,300 CNY/tonne. Aquaculture in south China is recovering as the weather gets warmer, and some feed manufacturers are making new purchases ahead of the Qingming Festival. Traders are thus unwilling to sell at low prices with brisker shipments at southern ports. Domestic fishmeal market is predicted to steady in the near term.

Stocks at ports: Dalian 11,560 tonnes, Tianjin 1,260 tonnes, Shanghai 46,010 tonnes, Huangpu 49,990 tonnes, Fuzhou 16,090 tonnes, Fangchenggang 1,060 tonnes and 4,135 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 100 CNY/tonne today. Brazilian soybean harvest has reached over 50% completed, and the marketing pace is gradually accelerated, which leads its export to creep up. In this case, monthly soybean arrivals in May-July could surpass 10 mln tonnes in China. However, Farmers are cautious in replenishing hog stocks amid the resurgence of African swine fever in some regions of China. Oils market keeps strong. These are bearish for meals prices. Besides, cottonseed meal trade continues to be tepid currently result from a lack of rigid demand, which curbs its market tentatively. But U.S. soybean futures further rose on Wednesday. Meals futures extend gains after opening high today on Dalian Commodity Exchange. Spot soybean meal is offered 20-40 CNY/tonne higher at coastal regions. With weather warming up across the country, the demand from aquaculture is poised to be better. 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 ¥6.53)