Today (Jan. 21), the market for meals in China is shown as follows:

Soybean meal: US stock market was shut yesterday. Soybean meal futures moderately rise on the Dalian Commodity Exchange today as investors close positions after a sharp decline in oil futures. Soybean meal spot prices partially fluctuate by 10-20 yuan/tonne with light trading ahead of the Lunar New Year. Specifically, the price settles at 2610-2780yuan/tonne today. (Tianjin 2780, Shandong 2670-2680, Jiangsu 2645-2680, Dongguan 2610-2640, and Guangxi 2640-2660.) China will substantially purchase US soybeans and meat products, while opening the market for DDGS. Currently, mills are keeping high operation rates for soybeans due to good crush margins. The coronavirus pneumonia in Wuhan is a rise in cases and has been confirmed to be able to spread from person to person. This has triggered concerns in the market, so that the stock markets broadly fall today. The catering industry is predicted to get impacted, and thus cutting the demand for meat products. Besides, aquaculture has been slack in winter and hog stocks will not recover until the second quarter this year; hence, soybean meal will have lower demand after the festival and feed enterprises do not make bulk replenishment ahead of the festival for a lack of confidence in the market. Short-term soybean meal prices will have limited impetus to rebound and will be little changed before the festival.

Imported rapeseed meal: Imported rapeseed meal stays stable with a slight decline in price today, of which it settles up partially 20 yuan/tonne at 2,150-2,190 yuan/tonne in coastal areas (Guangxi 2,190; Guangdong not offered; Fujian not offered). China will largely boost the purchase of U.S. agricultural products, and the import of DDGS which is alternative for meals also could be reopened. However, the number of cases of pneumonia in Wuhan increases sharply and it has been confirmed last night that the new coronavirus spread through human contact, triggering concerns to the market. Also, stock markets fall on the news today. And the catering will be affected by a rapid increase of number of cases, thereby reducing demand for meat. For another, demand from aquaculture has entered into an off season, and pig stocks will not significantly recover until the mid-to-late second quarter of 2020 at the earliest. Thus, rapeseed meal prices are curbed by these factors. But rapeseed is in tight supply amid unsolved issues between China and Canada, so the operation rate is lower. In consequence, the price declines of rapeseed meal are limited by less inventory in coastal areas in the near term. It is predicted that short-term market will fluctuate at a narrow range.

Imported fishmeal: Imported fishmeal prices are not offered today, as most traders have been leaving the market for their Lunar New Year holidays. 

Cottonseed meal: Today, cottonseed meal prices partially stay stable and are stopped to quote for the most part. The purchasing price of cottonseed is high in earlier stage, and there are many enterprises that have halted the operation amid stronger festive air. Thus, the cottonseed meal market is supported. But cottonseed meal is also dragged down by the inversion of price spread between soybean meal and cottonseed meal. Moreover, downstream enterprises have almost discontinued the purchase. Additionally, both buying and selling are tepid in the market, so cottonseed meal market is likely to see a little fluctuation and mainly keep steady before Spring Festival. On the other hand, China has confirmed that a new coronavirus in Wuhan which causes pneumonia could spread through human contact. And the catering will be affected by a rapid increase of number of cases, thereby reducing demand for meat. It will be also negative for meal products if the virus continues to spread. Participants should take note.