Today (Jan. 7), the market for meals in China is shown as follows:

Soybean meal: US soybean inched higher last night, and meal futures slightly fluctuate on the Dalian Commodity Exchange today. Soybean meal spots steadily fluctuate by 10-20 yuan/tonne in tepid trading. Specifically, the price settles at2690-2850yuan/tonne today. (Tianjin 2850, Shandong 2770-2800, Jiangsu2700-2760, Dongguan 2690-2700, and Guangxi 2690-2720.) China and the United States are expected to sign the trade deal very soon. Soybean imports may exceed the expected, and soybean crush has been at a high level of 2 million tonnes weekly due to good margins. Soybean meal stocks thus keep increasing, with some Guangdong mills suspending for swelling stocks. On the other, farmers will hurry to sell hog ahead of the Spring Festival, so hog breeding will enter into a slack state for a while after the festival. In addition, the rebound of meal futures on the DCE last week is just a fleeting show. Therefore, feed plants are wary of the market and only make small replenishment. Overall, soybean meal market is expected to steadily keep range-bound in the short term, and buyers can keep light stocks. 

Imported rapeseed meal: Imported rapeseed meal rises in price today, of which it settles up 10-20 yuan/tonne at 2,240-2,300 yuan/tonne in coastal areas (Guangxi 2,240; Guangdong 2,240; Fujian 2,240). The supply of rapeseed is still tight amid tensions between China and Canada, so rapeseed crush stays at a low level, and oil mills prop up prices. But there will be higher-than-expected arrivals of soybean and profitable crush margin after signing phase one trade deal with the United States. More than that, soybean crush has rallied to an extremely high level of 2 mln tonnes for the past two weeks, so the inventory of soybean meal also continues to pick up. Moreover, the demand from aquaculture in South China has been in an off season, and imported sunflower meal is striking rapeseed meal as well. Therefore, rapeseed meal price is squeezed in many ways and weak in going up, and short-term market is likely to keep fluctuating at a narrow range.

Imported fishmeal: Imported fishmeal prices steady today with certain 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. The demand for fishmeal is slack due to the end of aquaculture in winter and lower hog stocks. However, 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. Overall, Overall, fishmeal market is predicted to have some upward potential in the short term. Stocks at port: Huangpu 84,000 tonnes, Fuzhou 31,000 tonnes, Shanghai 34,000 tonnes, Tianjin 1,000 tonnes, Dalian 6,000 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 individual declines of 30 yuan/tonne today. The price of cottonseed keeps high, and some oil mills stop operation or limit production under the impact of inspection of environmental protection. Both factors are supporting the cottonseed meal market. But on the other hand, cottonseed meal prices are also depressed by poor demand limited by narrow price spread between soybean meal and cottonseed meal, low enthusiasm in taking goods. Accordingly, it is predicted that short-term market may keep fluctuating to adjust. Buyers can maintain a wait-and-see attitude.