Today (Feb. 20), the market for meals in China is shown as follows:

Soybean meal: US soybean futures rose last night. Meal futures also post slight gains on the Dalian Commodity Exchange today, and prices have a downtrend as the trading is dismal after distributors raised the price too much. Soybean meal spot prices steadily post a partial fluctuation of 10-20 yuan/tonne in tepid trading. Specifically, the price settles at 2670-3000 yuan/tonne today. (Tianjin 3000, Shandong 2880-2950, Jiangsu 2790-2820, Dongguan 2670-2710, and Guangxi 2700-2730.) With low soybean meal stockpiles and after having sold out spot goods, some mills still set limited quantity for delivery. In addition, the State Council has decided to expand the range on subsidies and discounted loans to cover more hog farms, so middle and small-sized farming companies will be motivated to make more replenishment. These will give support to soybean meal prices. But currently, oil mills have resumed production. And local mills and traders in Dongguan, where the prices remain at the lowest levels a city nationwide, are making shipments and sending containers to the northern markets, and some mills in Fujian province are selling goods to the north. With soybean meal being diverted from the south to the north, the prices may fall in the northern markets. And soybean meal market is in subdued trading after a round of active replenishment, which may weigh down meal prices. Overall, soybean meal market may keep range-bound and choppy in the short term.

Imported rapeseed meal: Imported rapeseed meal prices stay stable with fluctuations today, of which it fluctuates by 10 yuan/tonne at 2,220-2,310 yuan/tonne in coastal areas (Guangxi 2,220; Guangdong not offered; Fujian 2,270). So far, most oil mills have resumed the operation, and soybean meal supply keeps increasing. But there has been notices of take delivery of rapeseed meal. Besides, live poultry markets have been closed since the novel coronavirus pneumonia epidemic, and the transportation of feed, poult and live poultry has been blocked. In consequence, slaughtering enterprises have been shut down, causing very serious losses. Also, the demand from aquaculture has been in a slack season. Thus, rapeseed meal prices are curbed by these factors. However, rapeseed is in short supply amid continuous tensions between China and Canada, so oil mills reduce the operating rate. Therefore, short-term rapeseed meal market is likely to fluctuate at a narrow range. And buyers can wait and see.

Imported fishmeal: Imported fishmeal prices are stable today and can be traded through negotiation. Peruvian Standard SD with 65% protein content is 12,000-12,200 yuan/tonne; Peruvian higher-quality SD with 65% protein content is 12,200-12,500 yuan/tonne; Peruvian higher-quality SD with 67% protein content is 12,800-13,000 yuan/tonne; and Peruvian Super Prime SD with 68% protein content is 13,200-13,300 yuan/tonne. Under the impact of the novel coronavirus pneumonia, there is still a blockade in roads in some parts of China, so it is still slow to make shipment in fishmeal market. This has weighed down the fishmeal market. However, fishmeal stocks are concentrated only at some ports, while fresh goods have not arrived at domestic ports in huge quantities, so that port stocks fall by 21.73% against a year earlier. In this case, traders are seeking to lift the price. On the whole, the market is predicted to keep steady in the short term. Stocks at port: Huangpu 57,000 tonnes, Fuzhou 29,000 tonnes, Shanghai 30,000 tonnes, Tianjin 1,000 tonnes, Dalian 8,000 tonnes, Fangchenggang 1,000 tonnes and 4,000 tonnes at other ports. FOB prices from foreign merchants today: It is quoted steadily at 1,400 USD/tonne for Peruvian Standard with 65% protein content and 1,700 USD/tonne for Peruvian super with 68% protein content. Chilean Standard with 65% protein content is unchanged at 1,350 USD/tonne, and super with 68% protein content at 1,660 USD/tonne. 

Cottonseed meal: Cottonseed meal prices stay stable with a fluctuation of 20-50 yuan/tonne today. And some traders have just revived the offer, which raises the price by 150-200 yuan/tonne compared to before holiday. As Xinjiang oil plants have trouble in returning to job, the operation rate is very low, and there are many outstanding contracts. Thus, the factor of tight supply will support short-term cottonseed meal price to run at a high level. But the demand for cottonseed meal is limited by an inversion of price spread between soybean meal and it. Besides, live poultry markets have been closed since the outbreak, and the transportation of feed, poult and live poultry has been blocked. In consequence, slaughtering enterprises have been shut down, causing very serious losses. And China’s Ministry of Agriculture expects that it will bring an impact on the supply of poultry meats and eggs in the second and third quarter. Consequently, these are bearish for meals prices, and participants shouldn’t be too optimistic about the mid-term trend of cottonseed meal price.