Today (Mar 30), the market for meals in China is shown as follows:

Soybean meal: The weather forecast was beneficial for spring planting in U.S. soybean fields, and the market projected a much higher area in soybean planting this year. Meanwhile, U.S. soybean exports were cooling, and U.S. dollar hit a four-month high. Hence, U.S. soybean futures continued a decline on Monday. Meal futures open low and decline on China’s Dalian Commodity Exchange today. Spot soybean meal prices go down 20-40 CNY to 3,200-3,300 CNY/tonne, in tepid trade. (Tianjin 3300, Shandong 3220-3260, Jiangsu 3200-3270, Dongguan 3240-3260, and Guangxi 3260-3280.) 

Brazilian soybean exports will climb under more progress in harvests, so that China’s monthly soybean imports are forecast to reach 10 mln tonnes in May-July. In addition, domestic hog producers are cautious in making replenishment due to a downtrend in hog price and the influence of the African swine fever, and aquaculture sector has not been at full swing, so soybean meal trading remains dismal. But net crush margins for imported soybeans are at heavy loss on Dalian, and millers have signed a large quantity of forward soybean meal contracts, so they are still supporting meal price. Overall, soybean meal prices are predicted to follow futures to fluctuate repeatedly, and buyers can wait for low and stable price to make replenishment in small batch.

Rapeseed meal: U.S. soybean futures continued the declines on Monday. Meals futures also further drop today on China’s domestic exchanges. Spot rapeseed meal is offered at 2,710-2,810 CNY/tonne in coastal regions, a partial decrease of 10 CNY/tonne, in tepid trade. Farmers are reluctant to replenish hog stocks as hog prices keep falling amid 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. Meals stockpiles are at a high level, which is bearish for their prices. However, crush margins for rapeseed futures have been negative on Dalian Commodity Exchange, affecting mill’s positivity in further purchasing rapeseed cargoes. In addition, many crushing mills are idled by a shortfall in soybeans in March-April, which limit declines of rapeseed meal. It is projected that short-term rapeseed meal market may 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 northern 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 12,990 tonnes, Tianjin 1,210 tonnes, Shanghai 48,820 tonnes, Huangpu 56,310 tonnes, Fuzhou 17,480 tonnes, Fangchenggang 1,060 tonnes and 4,175 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. Crush margins for imported soybean futures on Dalian exchange have been negative, 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 further dropped on Monday. Dalian meals futures also retreat after opening low today. Spot soybean meal is offered 20-40 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, 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 ¥6.56)