Today (Apr 1), the market for meals in China is shown as follows:

Soybean meal: U.S soybean futures settled up its daily limit on Wednesday, bolstered by a quite bullish report by the USDA. Meal futures also post wide gains on China’s Dalian Commodity Exchange today. Spot soybean meal prices climb 80-180 CNY to 3,320-3,510 CNY/tonne, and the market is expected to be in tepid trade. (Tianjin 3480-3510, Shandong 3340-3410, Jiangsu 3320-3355, Dongguan 3360-3410, and Guangxi 3370-3400.) 

Crush margins for imported soybeans are at heavy loss on Dalian board, and soybean crush in China now also remains not huge. In the meantime, soybean meal shipments are improving as the demand from aquaculture is recovering in warmer weather. And millers have also completed many forward sales, so that they are active in raising prices. These combine to bolster a rise in meal price. However, China will take in large amounts of soybeans in the second quarter as it gradually shift its demand to South America. And domestic hog producers are cautious in replenishment due to the African swine fever and a downtrend in hog price, and aquaculture sector has not been at full swing. Besides, feed manufacturers have adjusted their formula due to excessively high corn prices and apply wheat and paddy rice to replace corn, which is thus reducing soybean meal use. Hence, soybean meal market has been in tepid trade. Sharp gains in oils prices today keep soybean meal narrowing down its gains. Overall, soybean meal market is predicted to have a difficulty in maintaining huge rises and likely fluctuate repeatedly. Buyers are suggested not to chase after excessive rises.

Rapeseed meal: U.S. soybean futures touched limit-up on Wednesday as USDA’s forecasts for soybean planting acreages fell below analyst expectations. Meals futures also post wide gains on domestic exchanges. Spot rapeseed meal is offered at 2,820-2,900 CNY/tonne in coastal regions, an increase of 90-140 CNY/tonne, in tepid trade. Crush margins for soybean and rapeseed futures have been negative on Dalian Commodity Exchange, and many crushing mills are idled by a shortfall in soybeans in March-April. With weather warming up across the country, the demand from aquaculture is poised to become better. Hence, oil mills have strong intention to prop up price, boosting meals prices. However, farmers are reluctant to replenish hog stocks amid a resurgence of African swine fever in some regions, which has led to a subdued trade in meal products. Besides, Brazilian farmers are accelerating their pace in soybean harvest, which will lead soybean export to climb up. In the second quarter, China’s soybean arrivals at ports will be much higher, weighing on meals prices. It is projected that short-term rapeseed meal market will not experience consecutive steep rises and may fluctuate frequently.

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 nearly 150,000 tonnes, so that traders have weak sentiment to support prices under slow shipments. 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. In addition, market sources said that Peruvian fish resources in the new season are not in a good state, so that the fishing quota is expected to decline to 2.0-2.5 mln tonnes, against a previous forecast 3.0 mln tonnes. Hence, domestic traders are 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 13,880 tonnes, Tianjin 1,450 tonnes, Shanghai 50,800 tonnes, Huangpu 59,860 tonnes, Fuzhou 18,110 tonnes, Fangchenggang 1,120 tonnes and 4,305 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 partly rise by 50-100 CNY/tonne today. U.S. soybean futures hit limit-up on Wednesday on unexpected bullish USDA report. Meals futures also post wide gains on Dalian Commodity Exchange. Spot soybean meal is offered 100-180 CNY/tonne higher in coastal regions. With weather warming up across the country, the demand from aquaculture is gradually recovering. In this case, soybean meal trading becomes a little better, and oil plants tend to raise price. These have together boosted meals prices. And most of cottonseed oil plants are idled at present, bringing some support to cottonseed meal market. 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. Also, aquaculture has not been in full swing now. 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)