Today (Jan. 2nd), the market for meals in China is shown as follows:

　　

　　Soybean meal: US soybean gained another 12.5 cents over the New Year’s holidays, for there is expectation that China will make further purchase after the telephone talk between the US and Chinese presidents. And today, meals on the DCE extend their early highs, and soybean meal spots follow to inch higher to attract some replenishment at low prices, but to clinch nearly no deal for those with big rises. Specifically, the price goes up by 10-50 yuan from that before the holiday to settle at 2,840-2,940 yuan/tonne in coastal areas. (Tianjin 2,850, Shandong 2,840-2,900, Jiangsu 2,840-2,920, Dongguan 2,840-2,940, and Guangxi 2,840-2,900). Global soybean supply has come under pressure amid the bumper harvests of Brazilian soybean. Moreover, China has eliminated the import tariff on mixed meals, and soybean meal stock has remained at a high level as the dampening effect from the contagious African swine fever is probably larger than forecast. Overall, soybean meal market will have limited space for rebounds and may follow its futures to fluctuate frequently in the short term. Buyers are suggested to buy on the dips to maintain adequate stocks, but not to force up the price excessively. 

　　Imported rapeseed meal: Prices for imported rapeseed meal inch up, of which it is 2,040-2,140 yuan/tonne in coastal areas, a rise of 20-30 yuan/tonne. (Guangxi 2,040, up 10; Guangdong 2,100, up 20; and Fujian 2,140, up 50). Two Guangdong mills have to suspend their production due to some problems in unloading their rapeseed over the rocky relationship between China and Canada, after which oil mills start to set delivery quotas amid reducing crush volume. Consequently, rapeseed meal stocks drop by 13% to 26,000 tonnes last week. Boosted by the intention to lift the price by oil mills, rapeseed meal price has climbed up. But Brazilian soybeans will go marketing soon amid bumper harvests, and meal demand is still subject to the off-season aquaculture and the rampant ASF, so there will be little room for price rises. Generally speaking, short-term rapeseed meal will follow its futures to post modest rebounds. Investors can keep an eye on the trade talks between China and the US on the week of January 7 in Beijing, and buyers are suggested to replenish properly upon low prices and be cautious in forcing up the price.

　　Imported fishmeal: Today, imported fishmeal keeps steady in price and can be traded with price negotiations, with normal shipment at port. Quotation at ports: it is 9,600-9,700 yuan/tonne for Peruvian ordinary SD with 65% protein content, 10,400-10,600 yuan/tonne for Japanese SD with 67% protein content and 10,700-10,800 yuan/tonne for super steam fishmeal with 68% protein content. Stocks at port: Huangpu 75,000 tonnes, Fuzhou 33,000 tonnes, Shanghai 55,000 tonnes, Tianjin 1,000 tonnes, Dalian 19,000 tonnes, Fangchenggang 1,000 tonnes and 4,000 tonnes at other ports. Spot quotations (FOB) in foreign market keep steady to rise: Peruvian ordinary SD fishmeal with 65% protein content is quoted at 1,250 USD/tonne and 1,530 USD/tonne for super SD fishmeal with 68% protein content. Chilean ordinary fishmeal with 65% protein content is quoted at 1,510 USD/tonne, and prime with 68% protein content is 1,620 USD/tonne. Domestic fishmeal market is restricted by large stock pressure at port under the overall delicate demand and slow shipment, in addition to the demand for arbitrage by some holders toward the end of the year. But some holders have showed strong willingness to reduce their losses in view of a stable foreign market and the price inversion both at home and abroad. Fishmeal market will post little volatility in the near term.

　　Cottonseed meal: The market of cottonseed meal today is supported by the rebound of meals on the DCE and cottonseed, a rise of soybean meal spots by 20-50 yuan/tonne, as well as its own small supply. But end demand is still reeling from the rampant ASF. Besides, China has announced previously the elimination of import tariffs on mixed meals from next year. And downstream companies take a cautious tactic in purchasing due to the upcoming trade talks between China and the United States. Therefore, prices of cottonseed meal post no rise today and some even go lower. Overall, short-term market may fluctuate narrowly, and buyers are suggested to replenish properly in small batches and be prudent in forcing up the price.