Today (Mar 29), the market for meals in China is shown as follows:

Soybean meal: The market forecast that U.S. soybean planting acreage will hit a record of 90 mln acres this year, up by 7 mln acres from last year; Brazilian producers were expected to quicken their pace of soybean harvests and exports, and Argentine farmers also launched soybean harvests in some regions; and the export demand for U.S. soybeans was cooling. Hence, U.S. soybean futures closed lower last Friday. Meal futures open low and decline on China’s Dalian Commodity Exchange today. Spot soybean meal prices go down 10-30 CNY to 3,260-3,320 CNY/tonne, in tepid trade. (Tianjin 3320, Shandong 3240-3280, Jiangsu 3230-3280, Dongguan 3260-3280, and Guangxi 3270-3300.) 

China’s monthly soybean imports are forecast to reach 10 mln tonnes in May-July. Hog producers are cautious in making replenishment due to a downtrend in hog price and the influence of the African swine fever, so soybean meal trading volume keeps low. But the demand from aquaculture sector will hopefully improve as the weather gets warmer. And net crush margins for imported soybeans are at heavy loss on Dalian due to a sharp decline in oils prices. Hence, millers are supporting meal prices. Soybean meal prices are predicted to follow futures to fluctuate repeatedly, and buyers can keep on the sidelines for the moment.

Rapeseed meal: U.S. soybean futures closed down on Friday. Meals futures fall back today on China’s domestic exchanges. Spot rapeseed meal is offered at 2,740-2,800 CNY/tonne in coastal regions, a decrease of 10-40 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 for the moment, which has led to a subdued trade in meal products. Rapeseed meal stocks have increased by 13% to 72,000 tonnes, depressing meals prices. However, crush margins for soybean and rapeseed futures have been negative on Dalian Commodity Exchange, impacting mill’s positivity in further purchasing rapeseed cargoes. In addition, many crushing mills are idled by a shortfall in soybeans in March-April, which boosts rapeseed meal market. It is projected that short-term rapeseed meal market will fluctuate at a narrow range.

Imported fishmeal: Imported fishmeal prices steady in China today, in tepid trade. Peruvian Standard SD with 65% protein content is 9,600-9,900 CNY/tonne; Peruvian higher-quality SD with 65% protein content is 10,000-10,200 CNY/tonne; Peruvian higher-quality SD with 67% protein content is 10,500-10,600 CNY/tonne; and Peruvian Super Prime SD with 68% protein content is 11,000-11,200 CNY/tonne. Fishmeal stocks at main ports in China keep increasing recently, with the total up to 140,000 tonnes. Traders in some regions have a problem in shipment and show weaker sentiment to support price. But 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 12,810 tonnes, Tianjin 1,240 tonnes, Shanghai 47,970 tonnes, Huangpu 55,010 tonnes, Fuzhou 17,270 tonnes, Fangchenggang 1,080 tonnes and 4,065 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 an individual rise of 50 CNY/tonne today. With weather warming up across the country, the demand from aquaculture is poised to become better. Oils market takes a nose dive. Soybean crushing mills prop up soybean meal price due to huge losses on imported soybean futures on Dalian exchange, which bolsters meals prices. And most of cottonseed oil plants are idled at present, bringing some support to cottonseed meal market. But CBOT soybean futures ended lower on Friday. Dalian meals futures also retreat after opening low today. Spot soybean meal is offered 10-30 CNY/tonne lower at coastal regions. Besides, Farmers are cautious in replenishing hog stocks on account of declining hog prices affected by the resurgence of African swine fever in some regions of China. In this case, soybean meal trading is light continually, weighing on meals prices. Likewise, cottonseed meal trade continues to be tepid currently result from a lack of rigid demand, which curbs its market tentatively. Therefore, short-term cottonseed meal price will likely still move with fluctuations.

(USD $1=CNY ¥6.54)