Today (Dec. 23), the market for meals in China is shown as follows:

Soybean meal: US soybean closed with gains last Friday, and meal futures fluctuate to edge higher on the Dalian Commodity Exchange today. Spot soybean meal prices steadily fluctuate by 10-20 yuan/tonne. Specifically, the price settles at 2710-2850 yuan/tonne today. (Tianjin 2850, Shandong 2830-2880, Jiangsu 2760-2820, Dongguan 2700-2720, and Guangxi 2730-2760, Fujian 2830-2850.) China bought about 15 cargoes of South American soybeans last week. Soybean stocks also mounted higher last week with soybean crush pegging at a high level of 1.86 mln tonnes. Besides, alternative meals now are arriving at southern ports in huge quantities, especially sunflower meal. And China is expected to purchase US agricultural products substantially after the trade deal is signed. In addition, feed manufacturers have delayed replenishment for the festival due to poor futures performance. But hog and sow stocks are rising under the push of handsome breeding margins and the favorable policy by government, so the feed consumption is also increasing. Soybean meal price is weak in bouncing for a lack of material bullish factors in the market, and short-term market is predicted to keep range-bound at a narrow range. Buyers out of stock can replenish in small batch upon price declines and remain cautious in chasing after high prices. 

Imported rapeseed meal: Imported rapeseed meal rises slightly in price today, of which it settles up 10-20 yuan/tonne at 2,190-2,320 yuan/tonne in coastal areas (Guangxi 2,270; Guangdong 2,190; Fujian not offered). The supply of rapeseed is still tight amid tensions between China and Canada, so oil mills prop up prices. But China will purchase more U.S. soybeans after signing the phase one trade deal. And Chinese buyer still purchase South America soybeans continually and has bought 15 boatloads through last week. Last week, soybean crush rallied to a super high level of 1.86 mln tonnes. Furthermore, the demand for meals is affected by slack season of aquaculture in South area, which has led rapeseed meal inventory in coastal areas to increase by 22% week on week to 11,000 tonnes. Besides, a large amount of imported sunflower meal arrives at ports in December, striking rapeseed meal. Therefore, the price rises of rapeseed meal may be limited, and short-term market may keep fluctuating at a narrow range. So buyers with stock in hand can wait and see.

Imported fishmeal: Imported fishmeal prices steady today with certain negotiation space. Peruvian Standard SD with 65% protein content is 9,800-10,000 yuan/tonne; Peruvian higher-quality SD with 65% protein content is 10,200-10,400yuan/tonne; Peruvian higher-quality SD with 67% protein content is 10,700-10,900 yuan/tonne; and Peruvian Super Prime SD with 68% protein content is 11,000-11,200 yuan/tonne. The demand for fishmeal remains tepid with slow shipment under current slack consumption, so there is limited upward space for the price. But the Peruvian government has announced that fish catches shall be paused till December 26th since 80% of fish resources are still juvenile period. The poor fish catches in Peru is also a bullish factor for domestic market, underpinning the sentiment for higher prices. Overall, fishmeal market still has some upward potential in the short term. Stocks at port: Huangpu 97,000 tonnes, Fuzhou 33,000 tonnes, Shanghai 39,000 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 higher by 50 USD at 1,280 USD/tonne for Peruvian Standard with 65% protein content and higher by 50 USD at 1,580 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 some oil mills stop operation due to the inspection for environmental protection.  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 prefer to purchase soybean meal. Moreover, feed factories delay the restocking ahead of the holiday, so the trading volume of some manufacturers is dull. 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.