Today (Jan. 10), the market for meals in China is shown as follows:

Soybean meal: US soybean futures closed with losses last night as Brazil was expected to harvest abundant crop and as investors squared positions ahead of the USDA report. Soybean meal spots drop by 20-40 yuan/tonne in tepid trading. Specifically, the price settles at2620-2800yuan/tonne today. (Tianjin 2800, Shandong 2690-2720, Jiangsu 2640-2700, Dongguan 2620-2660, and Guangxi2630-2650.) Soybean imports have been arriving at ports in huge quantities for two months, and soybean crush have been pegged at a very high level under good margins. And in the meantime, the demand from aquaculture usually falls in winter, and with high slaughtering rates in run up for the Spring Festival, hog breeding will then go slack; hence, the demand for soybean meal will fall accordingly. Feed enterprises this year just make small replenishment for the festival, which also leads to a rise in soybean meal stocks with some Guangdong mills even suspending crush for swelling stocks. In addition, funds keep buying up on oil futures for margins. However, sow stocks have seen a month-on-month increase of 7.5% last month, according to data from Cofeed. And hog stocks are expected to pick up significantly after May this year. At that time, the demand from hog feed will follow to recover. But the demand is hard to get improved before that, and oil market still keeps firm, and soybean imports may increase sharply after China and US sign the phase-1 trade deal, so meal prices will have a weakening trend. Buyers can wait at the moment.

Imported rapeseed meal: Imported rapeseed meal declines in price today, of which it settles down 10-20 yuan/tonne at 2,200-2,340 yuan/tonne in coastal areas (Guangxi 2,240; Guangdong 2,210; Fujian 2,210). China is active in purchasing Brazilian soybeans owing to good crush margin and has purchased 10-12 boatloads of Brazilian soybeans this week. Moreover, with huge imports of imported soybean arriving at ports in recent two months, soybean crush remains extremely high. Furthermore, the demand from aquaculture has entered into an off season, leading additional increase of inventory of soybean meal and rapeseed meal. In addition, U.S. and China are about to sign the phase one trade deal next week, so the imports for DDGS may be opened. Thus, rapeseed meal prices are curbed by these factors. But mills are short of rapeseed to squeeze amid unclear relations between China and Canada, which also 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 steady with a partial rise of 100-300 yuan today. Peruvian Standard SD with 65% protein content is 10,400-10,800 yuan/tonne; Peruvian higher-quality SD with 65% protein content is 10,700-11,100 yuan/tonne; Peruvian higher-quality SD with 67% protein content is 11,200-11,800 yuan/tonne; and Peruvian Super Prime SD with 68% protein content is 11,700-12,000 yuan/tonne. The Peruvian government has set a fishing ban for an infinite period in some seas areas, so that fish catch has gone worsening gradually. 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, the market is predicted to have some upward potential in the short term. Stocks at port: Huangpu 80,000 tonnes, Fuzhou 32,000 tonnes, Shanghai 34,000 tonnes, Tianjin 1,000 tonnes, Dalian 5,000 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 stays stable today. The price of cottonseed is high and some inland enterprises limit production or stop operation on environmental protection, supporting the cottonseed meal market. But 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 decline further, and spot soybean meal down by 20-40 yuan/tonne. Accordingly, cottonseed meal market is weighed down by these factors. Therefore, short-term market is predicted to go on fluctuating to adjust. Buyers can maintain a wait-and-see attitude.