Today (Feb. 6), the market for meals in China is shown as follows:

Soybean meal: US soybean rose for three days in row last night on worries about the epidemic in China and as global stock market went strengthening. But as oil prices post huge gains, meal futures slightly drop on the Dalian Commodity Exchange today. Soybean meal spot prices steadily post a partial decline of 10-20 yuan/tonne in weaker trading. Specifically, the price settles at 2620-2800 yuan/tonne today. (Tianjin 2800 , Shandong 2740-2780, Jiangsu 2690-2700, Dongguan 2620-2640, and Guangxi 2680-2700.) The majority of mills have delayed their schedule for production under the epidemic, and mills in Shandong have to wait for the notice from local governments who have set strict control. Mills in some parts of East China have resumed work, but soybean crush will likely go below the expected. The blockade for cities and roads is now a common outcome under the epidemic situation, so that the cost for transportation has been lifted by sluggish logistics. Moreover, mid-to-downstream buyers, who were very cautious before the holidays, just made small replenishment, so that they are now rushing to make purchases on concern over the quick spread of the coronavirus. In this case, most mills have to limit the quantity for delivery because of low stocks in hand. Therefore, soybean meal prices are supported by declining stocks. But it will still take some time to comprehensively control the severe coronavirus, so the usage of soybean meal will also be limited, leading to a gloomy outlook in demand. Meanwhile, local governments are introducing policies to stabilize the production, so mills will gradually resume work. And soybean meal prices may fall accordingly. DCE meal futures are in correction, so buyers can stay on the sidelines.

Imported rapeseed meal: Imported rapeseed meal prices stay stable with slight declines today, of which it settles at 2,170-2,220 yuan/tonne in coastal areas and partially down by 10 yuan/tonne (Guangxi 2,170, flat; Guangdong 2,220; Fujian 2,200, flat). Chinese oil mills keep purchasing South American soybean under its good margin of futures. Besides, the epidemic continues to spread, triggering a heavier panic mood in market, so the catering industry has bee hard hit. More than that, Hunan outbreaks the avian influenza, and aquaculture is in a slack season, so the demand for meals will be not improve soon. Accordingly, rapeseed meal prices are curbed from many aspects. In addition, rapeseed is in short supply amid continuous tensions between China and Canada, so oil mills prop up prices. It is predicted that the overall price still be in a weak trend before a detente in the epidemic. Buyers can stay on the sideline.

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. Subject to the spread of the novel coronavirus, China has extended the Lunar New Year holidays, so that many traders have not resumed work. There is no prevailing prices available in the fishmeal market, and the trading is quite lukewarm under slow 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 is mostly unquoted and not produced today, and individual prices are up 50 yuan/tonne. Only a minority oil mills start the production due to the epidemic, which limits the supply of cottonseed meal. Besides, downstream feed mills make replenishment. Thus, these factors are boosting a slight rise in cottonseed meal market. But the price gap between soybean meal and cottonseed meal sees an inversion. Meanwhile, the vehicles are in a shortage and demand for cottonseed meal is poor on account of control of road traffic and population movements affected by the epidemic. Moreover, meals on Dalian Commodity Exchange today fall back slightly due to a surge in oils prices, and spot soybean meal keeps steady with a partial decrease of 10-20 yuan/tonne. In consequence, all these factors above bear the 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.