Today (Jan. 6), the market for meals in China is shown as follows:

Soybean meal: US soybean fell sharply last Friday on lower exports and on profit taking after escalating tensions in the Middle East. Meal futures are dragged down to decline after lower opens on the Dalian Commodity Exchange today. Soybean meal spots drop by 20-40 yuan/tonne in tepid trading. Specifically, the price settles at 2680-2830yuan/tonne today. (Tianjin 2830, Shandong 2750-2800, Jiangsu 2720-2770, Dongguan 2670-2690, and Guangxi 2700-2720.) China and the United States are expected to sign the trade deal on January 15th, as part of which China has committed to boost agricultural products imports from the US. Soybean imports are forecast to reach 7.40 mln tonnes in January, and soybean crush has returned to a very high level in the past two weeks. In this case, soybean meal stocks have been increasing, with some Guangdong mills suspending production for swollen stocks. Besides, the slaughtering rate of hog will increase in the run up to the Spring Festival, so hog breeding may be slack for a while after the festival. Feed companies are not confident about the market so that they will just make small replenishment. Moreover, funds continue to buying up oils due to the firm prices, which cracks down soybean meal prices. In the absence of bullish factors, soybean meal prices will stay weak to fluctuate in the short term. Buyers can wait for low and stable prices to make appropriate replenishment.

Imported rapeseed meal: Imported rapeseed meal declines in price today, of which it settles down 30-40 yuan/tonne at 2,210-2,300 yuan/tonne in coastal areas (Guangxi 2,210; Guangdong not offered; Fujian 2,220). With huge imports of soybeans arriving at ports, the estimate for arrivals in January is 7.4 mln tonne. And soybean crush has rebounded to an extremely high level of 2 mln tonnes for the last two weeks. Besides, the demand for meals is affected under an off season of aquaculture in South China, which leads rapeseed meal inventory in coastal areas to increase to 23,500 tonnes last week and up by 46% from the previous week. Moreover, the profit taking of buying oils and selling meals is active. In consequence, rapeseed meal price is curbed by these factors. But the supply of rapeseed is tight amid unclear relations between China and Canada, causing the low level of operation rate. Hence, the price declines of short-term rapeseed meal are also limited. Buyers had better stand on the sideline factored in volatile prices.

Imported fishmeal: Imported fishmeal prices have all been raised by 300 yuan/tonne today with little negotiation space. Peruvian Standard SD with 65% protein content is 10,300-10,600 yuan/tonne; Peruvian higher-quality SD with 65% protein content is 10,700-10,900 yuan/tonne; Peruvian higher-quality SD with 67% protein content is 11,200-11,500 yuan/tonne; and Peruvian Super Prime SD with 68% protein content is 11,500-11,800yuan/tonne. In addition to worsening fishing state, the Peruvian government has set a fishing ban for an infinite period in some seas areas. Meanwhile, some domestic traders now have limited supply and are awaiting for higher prices. But the demand for fishmeal is slack due to the end of aquaculture in winter and lower hog stocks. Overall, fishmeal market is predicted to keep its strengthening trend in the short term. Stocks at port: Huangpu 86,000 tonnes, Fuzhou 33,000 tonnes, Shanghai 37,000 tonnes, Tianjin 2,000 tonnes, Dalian 7,000 tonnes, Fangchenggang 1,000 tonnes and 4,000 tonnes at other ports. FOB prices from foreign merchants today: it is quoted steadily at 1,380 USD/tonne for Peruvian Standard with 65% protein content and 1,680 USD/tonne for Peruvian super with 68% protein content. Chilean Standard with 65% protein content is unchanged at 1,200 USD/tonne, and super with 68% protein content at 1,510 USD/tonne.

Cottonseed meal: Cottonseed meal price stays stable with some declines of 10-50 yuan/tonne today. The poor demand is affected by narrow price spread between soybean meal and rapeseed meal, and downstream enterprises are not active in stocking up goods. In addition, meals on DCE today fall back with low opens, and spot soybean meal down by 20-30 yuan/tonne. Accordingly, cottonseed meal price is depressed by these factors. But the price of cottonseed is still high, and some inland enterprises limit or discontinue production due to inspection of environmental protection. Therefore, the price declines of cottonseed meal are limited, and short-term market is predicted to fluctuate weakly. Buyers can stay on the sideline and make proper replenishment upon low and stable prices.