Today (Apr 28), the market for meals in China is shown as follows:

Soybean meal: U.S. soybean futures retreated to decline sharply on Tuesday on technical selling as well as profit-taking ahead of the month end, and continue the downtrend on board today. Meal futures are drag down to decline widely on China’s Dalian Commodity Exchange today. Spot soybean meal prices go down 40-70 CNY at 3,420-3,560 CNY/tonne, attracting some low-level purchases. (Tianjin 3510, Shandong 3430-3460, Jiangsu 3420-3560, Guangdong 3430-3510, and Guangxi 3500-3520.)

Soybean vessels from South America are arriving at domestic ports, and domestic soybean crush also returns to a normal level of 1.80 mln tonnes weekly. Moreover, domestic hog producers dare not replenish huge stocks due to a continued decline in hog price and the African swine fever, and the demand for soybean meal will be affected as feed manufacturers take wheat as an alternative for corn. Soybean meal stocks have started to rise marginally in coastal China, which are bearish to soybean meal price. However, crush margins for imported soybeans on Dalian are at heavy loss due to high U.S. soybean price. And aquaculture sector is entering into the peak season, and mid-and-downstream buyers are still stocking up for the 5-day Labour Day holidays; hence, millers are making delivery at a brisker pace. The cost factor is a dominant under tight U.S. old soybean stocks and uncertain planting weather, so soybean meal prices will have limited downside space in the short term. The overall soybean meal market will fluctuate to keep the strength before the supply pressures occurs.

Rapeseed meal: CBOT soybean futures closed down on Tuesday and continue plunging today, with July contract falling from the 1,500 cents level. Meals futures widely retreat on China’s exchanges today. Spot rapeseed meal is offered at 2,830-2,880 CNY/tonne in coastal regions, a decline of 20-40 CNY/tonne, in tepid trade. Farmers are afraid to replenish hog stocks due to sharply lower hog prices and lingering African swine fever. Moreover, soybean crush volume is persistently rebounding with more boatloads arriving at ports successively. These are bearish on meals prices. However, crush margins for rapeseed futures have been in substantial losses on domestic exchange, which cause crushers to be reluctant to buy cargoes in later period. Besides, crushers tend to raise price with aquaculture being in a full swing, which may limit the downside of meal products. It is projected that rapeseed meal market will likely track futures to fluctuation in the short run. Buyers can take a wait-and-see attitude.

Imported fishmeal: Imported fishmeal prices steady with a partial rise in China today, in tepid trade. Peruvian Standard SD with 65% protein content