Today (Dec. 20), the market for meals in China is shown as follows:

Soybean meal: US soybean further eased last night, as favorable crop weather could boost production in Argentina and Brazil. Meal futures extend losses on the Dalian Commodity Exchange today. Spot soybean meal prices steadily drop by 10-20 yuan/tonne. Specifically, the price settles at 2710-2880 yuan/tonne today. (Tianjin 2880, Shandong 2840-2880, Jiangsu 2770-2810, Dongguan 2700-2720, and Guangxi 2750-2770, Fujian 2830-2850.) China will boost US soybean imports after signing the trade deal, and domestic buyers have been scooping up South American soybeans, with a total of 11-13 cargoes of Brazilian soybeans since this Tuesday. The African swine fever, which has cut demand for meals, has been reported in some areas again. And a huge quantity of alternative meal imports have been arriving at southern ports, especially sunflower meal in December, so some feed enterprises have adjusted their formula. Meal prices in Guangdong and Guangxi have stayed at the lowest level in the country, and funds keep buying up on oils to book profits. Therefore, soybean meal market is in low sentiment. But soybean import cost has been lifted, lowering down crush margins for near-month cargoes. And pig feed consumption is rising due to higher live hog and sow stocks under handsome breeding margins. Merely, the market has yet welcomed the festival demand, so there is a lack of material bullish factors in the market. Overall, soybean meal has little upward impetus in the short term and may maintain narrow and weak fluctuations with some underlying losses. Buyers can wait at the moment. 

Imported rapeseed meal: Today, imported rapeseed meal price stays stable to inch lower, of which it settles down 10-20 yuan/tonne at 2,170-2,270 yuan/tonne in coastal areas (Guangxi 2,270; Guangdong 2,190; Fujian not offered). China will increase U.S. soybeans imports after signing the phase one trade deal. Besides, the demand from aquaculture in South China has entered into a slack season. Also, imported mixed meals arrive at ports in huge quantities, especially the imported sunflower meal. Additionally, the African swine fever has relapsed in some regions. Thus, the price rapeseed meal is restrained. But most oil mills are lacking rapeseed for crushing amid the unclear relations between China and Canada, and rapeseed meal inventory stays at a low level in coastal areas, which limits the price declines of short-term rapeseed meal. As the declining price has yet to keep steady, buyers can wait and see.

Imported fishmeal: Imported fishmeal prices expand rises today with certain negotiation space. Peruvian Standard SD with 65% protein content is 9,800-10,000 yuan/tonne, a rise of 100-200 yuan/tonne; Peruvian higher-quality SD with 65% protein content is 10,200-10,400yuan/tonne, a rise of 200-300 yuan/tonne ; Peruvian higher-quality SD with 67% protein content is 10,700-10,900 yuan/tonne, a rise of 200-300 yuan/tonne; and Peruvian Super Prime SD with 68% protein content is 11,000-11,200 yuan/tonne, a rise of 200 yuan/tonne;. Traders are further hiking quotations today, as the Peruvian government has announced that fish catches shall be paused till December 26th since 80% of fish resources are still juvenile period. Bolstered by such a bullish factor, short-term fish meal market is predicted to move higher. But the problem is that there is still little demand in the market, which may act as a curb. Stocks at port: Huangpu 99,000 tonnes, Fuzhou 33,000 tonnes, Shanghai 41,000 tonnes, Tianjin 1,000 tonnes, Dalian 11,000 tonnes, Fangchenggang 1,000 tonnes and 4,000 tonnes at other ports. FOB prices from foreign merchants today: it is quoted steadily at 1,230 USD/tonne for Peruvian Standard with 65% protein content and 1,530 USD/tonne for Peruvian super with 68% protein content. Chilean Standard with 65% protein content is unchanged at 1,100 USD/tonne, and super with 68% protein content at 1,410 USD/tonne.

Cottonseed meal: Cottonseed meal stays stable today. The price of cottonseed is still high, and there is a sign that feed factories in some regions will start the stockpiling in New Year’s Day. Both factors are supporting the market of cottonseed meal. But the price spread between soybean meal and cottonseed meal is narrow, so some feed factories tend to purchase soybean meal. Moreover, due to a lack of rigid demand under an off season of aquaculture, the trading volume of some manufacturers is dull. And meals on DCE today dip further, and spot soybean meal steadily declines by 10-20 yuan/tonne. In consequence, the market of cottonseed meal is dragged down by these factors and likely to fluctuate at a narrow range in a short term. Buyers can take a wait-and-see attitude.