Today (Feb. 4), the market for meals in China is shown as follows:

Soybean meal: US soybean futures rebounded last night on concerns over a tight outlook in global vegetable oil supply and as US soybeans inspected for exports went higher to 1.3556 mln tonnes from 1.0596 mln tonnes in the previous week. And meal futures also jump significantly higher on the Dalian Commodity Exchange today. Meanwhile, soybean meal is in tight supply in some spot markets. Therefore, soybean meal spot prices go up by 20-50 yuan/tonne to see some low-level purchases. Specifically, the price settles at 2630-2810 yuan/tonne today. (Tianjin 2810, Shandong 2700-2810, Jiangsu 2680-2710, Dongguan 2630-2650, and Guangxi 2670-2690.) A majority of mills have postponed the schedule for production under the coronavirus outbreak. In this case, soybean crush is predicted to be only 710,000 tonnes this week, a 60% below the normal level; and then it will recover to 80% to 1.48 mln tonnes in that following week. The blockade for cities and roads is now a common outcome under the epidemic situations, so that the cost for transportation has been lifted by sluggish logistics. Moreover, mid-to-downstream buyers were cautious before the holidays, but now they are concerned about a lack of supply under the spread of the virus, so the market was trading very well yesterday. However, local governments have banned the trading of live poultry in consideration of the coronavirus, and the demand for meat products is also affected as the catering industry is hit heavily. Besides, hog stocks may recover at a slower pace than expected, and the bird flu in Hunan province is also a bearish factor. With a gloomy prospect in demand for soybean meal, feed enterprises will not chase after high prices. Therefore, soybean meal prices will have limited rises. Amid concerns over the epidemic outbreak, soybean meal price is predicted to take a downtrend overall, and buyers are suggested to stay on the sidelines.

Imported rapeseed meal: Imported rapeseed meal price rises today, of which it settles up 20-50 yuan/tonne at 2,170-2,220 yuan/tonne in coastal areas (Guangxi 2,170, up 50; Guangdong not offered; Fujian 2,200, up 40). The supply of rapeseed gets tight amid tensions between China and Canada, so the operation rate in oil mills is lower. Although rapeseed meal stocks in coastal areas increased to 15,000 tonnes last week, it was down 31% from the same period last year. In consequence, oil mills prop up prices. However, the spread of new coronavirus pneumonia has triggered panic mood on the market. Meanwhile, the demand for various meats is also affected by the huge hurt in catering industry owing to the epidemic. Even more, the demand from aquaculture is in an off season. Therefore, rapeseed meal price is curbed from many aspects. It is predicted that the overall price still be in a weak trend before a detente in the epidemic. Buyers can make proper replenishment on the dips but not chase up prices too high.

Imported fishmeal: Imported fishmeal prices are stable today with certain negotiation space. Peruvian Standard SD with 65% protein content is 11,800-12,000 yuan/tonne; Peruvian higher-quality SD with 65% protein content is 12,100-12,300 yuan/tonne; Peruvian higher-quality SD with 67% protein content is 12,600-12,800 yuan/tonne; and Peruvian Super Prime SD with 68% protein content is 13,000-13,100 yuan/tonne. Most traders have not returned to the market as the holiday is extended under the severe impact of the coronavirus, so there is no prevailing price in the market, and few actual trading due to sluggish logistics. But traders are also waiting for higher prices as the market sentiment is affected by the end of fish catches in centre-north regions of Peru. Overall, fishmeal prices will probably keep stable in the near term. The prevailing price is expected to be available after Feb 10. Stocks at port: Huangpu 58,000 tonnes, Fuzhou 30,000 tonnes, Shanghai 30,000 tonnes, Tianjin 1,000 tonnes, Dalian 9,000 tonnes, Fangchenggang 1,000 tonnes and 4,000 tonnes at other ports. FOB prices from foreign merchants today: It is quoted steadily at 1,430 USD/tonne for Peruvian Standard with 65% protein content and 1,730 USD/tonne for Peruvian super with 68% protein content. Chilean Standard with 65% protein content is unchanged at 1,250 USD/tonne, and super with 68% protein content at 1,560 USD/tonne.

Cottonseed meal: Cottonseed meal prices are mostly not offered today and individual are steady. Since most enterprises have yet to return to work  the pneumonia epidemic, the supply of cottonseed meal is very limited. Besides, meals on DCE rebound sharply today. Beyond this, spot goods are in tight supply in some regions, so spot soybean meal price is up 20-50 yuan/tonne. Therefore, cottonseed meal market is bolstered by these factors. But the price spread between soybean meal and cottonseed meal sees an inversion. And catering industry is also under a great impact due to the epidemic, affecting demand for meats. Beyond that, a significant recovery of hog stocks may not be too soon, and the avian influenza occurred in Hunan also goes against the improvement in demand for cottonseed meal. Accordingly, these are bearish for cottonseed meal market. With the crush of cottonseed operating successively in the later period, cottonseed meal price is likely to have a contingent risk of moderate falls.