Today (Jan. 15), the market for meals in China is shown as follows:

Soybean meal: US soybean futures rose last night, bolstered by the trade deal that would be signed by China and the US very soon. Meal futures edge higher on the Dalian Commodity Exchange today. Soybean meal spots steadily go up by 10-20yuan/tonne with some low-level purchases for the festival. Specifically, the price settles at 2,620-2,770 yuan/tonne today. (Tianjin 2770, Shandong 2665-2680, Jiangsu 2620-2640, Dongguan 2620-2630, and Guangxi 2620-2660.) It is the last week for the replenishment ahead of the festival, so downstream buyers have quickened delivery, which helps support meal prices. However, China will ramp up purchases of agricultural products such as soybeans and DDGS from the US under the trade deal that will be signed between the two countries very soon. In this case, soybean crush will still be pegged at a high level in the near future. On the demand front, aquaculture has been slack in winter, and the breeding industry will be quiet after high slaughtering rates before the Spring Festival. The demand for soybean meal will fall accordingly, so feed enterprises now do not make bulk purchases for a lack of confidence. In the absence of high demand from hog breeding or before huge losses in oil prices, meal prices will have limited impetus to rebound. Besides, the content of the trade deal will be released on January 15th, except those annexes which specify China’s purchases of US products and services, according to a report by Reuters. If so, the signing of the trade deal is expected to have less impact on the market. Buyers out of stocks are suggested to make appropriate replenishment on the dips and remain cautious in chasing after high prices. 

Imported rapeseed meal: Imported rapeseed meal declines slightly in price today, of which it partly settles down 10 yuan/tonne at 2,160-2,180 yuan/tonne in coastal areas (Guangxi 2,170, down 10; Guangdong 2,160; Fujian 2,180). With huge imports of imported soybean arriving at ports and crush margins going better in recent two months, soybean crush remains extremely high. Furthermore, the demand for meal products is poor amid a slack season of aquaculture, leading another rally of soybean meal inventory. Also, the imports for U.S. DDGS may be opened. Thus, rapeseed meal prices are curbed by these factors. On the other hand, mills are short of rapeseed to squeeze since there is no sign of a detente in relations between China and Canada, which also limits the price declines of short-term rapeseed meal. Buyers can make small replenishment upon low and stable prices.

Imported fishmeal: Imported fishmeal prices expand rises by 500-700 yuan/tonne today with some negotiation space. Peruvian Standard SD with 65% protein content is 11,300-11,500 yuan/tonne; Peruvian higher-quality SD with 65% protein content is 11,600-11,800 yuan/tonne; Peruvian higher-quality SD with 67% protein content is 12,200-12,400 yuan/tonne; and Peruvian Super Prime SD with 68% protein content is 12,500-12,600 yuan/tonne. While the 5-day fishing ban has not gone expired in Peru, its Ministry of Production announced that it concluded the second fishing season in the north-central zone. With the coming of this bullish news, domestic traders mostly stall sales to wait for an upsurge in the market. But logistics companies have gradually closed for the Spring Festival, and the demand for fishmeal is still lukewarm, which will continue to limit its upward space. Overall, the market is predicted to go strengthening in the short term. Stocks at port: Huangpu 67,000 tonnes, Fuzhou 31,000 tonnes, Shanghai 32,000 tonnes, Tianjin 1,000 tonnes, Dalian 4,000 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. Cottonseed price is high, and the operation rate is trending down due to the upcoming Spring Festival. Besides, meals on DCE rise slightly today, and spot soybean meal steadily up by 10-20 yuan/tonne. For these reason, cottonseed meal market is supported. However, the price spread between soybean meal and cottonseed meal shows an inversion, and downstream enterprises are not anxious to take goods, so the market of cottonseed meal is curbed and likely to fluctuate weakly. Buyers can maintain a wait-and-see attitude.