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

Soybean meal: US soybean futures declined last night on low demand from China, and meal futures fluctuate to adjust on the Dalian Commodity Exchange today. Soybean meal spot prices steadily post a partial fluctuation of 10-20 yuan/tonne in tepid trading. Specifically, the price settles at 2660-2900 yuan/tonne today. (Tianjin 2900, Shandong 2880-2910, Jiangsu 2790-2800, Dongguan 2660-2680, and Guangxi 2680-2750.) The consecutive losses in oil futures have narrowed down margins in soybean crush on the DCE. Moreover, mills have low soybean meal stocks at present and have almost sold out spot goods, and some of them are still setting limited quantity for delivery. In addition, the central government has expanded the range on subsidies and discounted loans to cover more hog farms, which is favorable to recover hog production. All these are propping up meal prices. But mills have resumed production, so soybean meal stocks will be rising gradually. And mills and traders in Dongguan, where the price stays at the lowest level nationwide, are making shipments and loading containers to the northern parts. And some Fujian mills also find their buyers in the northern markets. With soybean meal being diverted from the south to the north, the prices may fall in the north. Besides, soybean meal market has a gloomy prospect in demand as the demand for meat products is cut by the epidemic, and the market has been in weaker trading after a round of active replenishment. Therefore, meal prices will also have limited upward space. Overall, soybean meal market may keep range-bound to adjust in the short term, and buyers can wait for fresh news.

Imported rapeseed meal: Imported rapeseed meal prices stay stable today, of which it settles at 2,220-2,310 yuan/tonne in coastal areas (Guangxi 2,220; Guangdong not offered; Fujian 2,270). Rapeseed is in tight supply amid unresolved issues between China and Canada, so oil mills reduce the operation rate. Moreover, most spot soybean meal has been sold out and inventories stay at a low level, which supports rapeseed meal price. But so far, most oil mills have resumed the operation, so soybean meal stocks will climb up gradually. Besides, as a result of the novel coronavirus pneumonia epidemic, the transportation of feed, poult and live poultry has been impeded. In consequence, slaughtering enterprises have been shut down, resulting very serious losses. Except that, the demand for meats becomes poor as catering industry is under the impact of the epidemic. Also, the demand from aquaculture has been in a slack season. Thus, rapeseed meal prices are curbed by these factors. 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 nationwide, so that it is difficult to make bulk shipment in fishmeal market. This continues to weigh down the market. But currently, fishmeal supply is uneven in the markets, with some even out of supply. In the meantime, fresh goods have not been put into the market in huge quantities. As a result, port stocks fall by 20.99% 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 9,000 tonnes, Fangchenggang 1,000 tonnes and 4,000 tonnes at other ports. FOB quotes from foreign merchants today: It is higher by 30 USD 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 raised by 190 USD at 1,400 USD/tonne, and super with 68% protein content up by 40 USD at 1,700 USD/tonne. 

Cottonseed meal: Cottonseed meal prices are mostly not offered today and partly steadily decrease by 30-50 yuan/tonne today. The demand for cottonseed meal is limited by an inversion of price spread between soybean meal and it. Besides, the novel coronavirus pneumonia outbreak has affected demand for meats, thereby the demand outlook of meals is also worrisome. Accordingly, cottonseed meal prices are depressed by these factors. But oil mills reduce the operation rate to a low level. And there is no pressure of delivery owing to many outstanding contracts. Therefore, the price declines of cottonseed meal are limited temporarily, and short-term market is predicted to fluctuate at a high level. Nevertheless, participants shouldn’t be too optimistic about the mid-term trend of cottonseed meal price.