Today (Mar. 9), the market for meals in China is shown as follows:

Soybean meal: Global stock markets tumbled on concerns over global economy, as the novel coronavirus spread to over one hundred countries and regions. And Saudi Arabia started an oil price war by slashing its prices by the most in over twenty years after Russia rejected the OPEC on cuts in oil supplies. Crude oil prices crashed by 38% from last Friday to today, and US soybean futures also closed sharply lower last Friday. Meal futures open low to slide on the Dalian Commodity Exchange today. Soybean meal spot prices go down by 30-60 yuan/tonne in weaker trading. Specifically, the price settles at 2730-2860 yuan/tonne today. (Tianjin 2860, Shandong 2840-2860, Jiangsu 2770-2800, Dongguan 2730-2780, and Guangxi 2750-2800.) Chinese importers continue buying on Brazilian soybeans due to decent crush margins on the DCE. Besides, the Chinese government has granted new tariff exemptions on US soybean imports for Chinese crushers with one year-long validity. And with the spread of the epidemic globally, lower demand for meat products will also affect the breeding. These factors are all weighing on meal prices. However, soybean arrivals at domestic ports are smaller this month, and some mills have made a plan for downtime. Soybean meal stocks remain at a low level, and oil mills are busy carrying out contract after having sold out spot goods, a sign that it will take time to abate supply in soybean meal market. Mills are inclined to propping up prices following a steep decline in oil prices, so meal prices see a smaller fall than oil products. On consideration of high pressure from the big drop in stock markets and crude oil, buyers can wait for the moment.

Imported rapeseed meal: Imported rapeseed meal price drops today, of which it settles down 50-100 yuan/tonne at 2,170-2,290 yuan/tonne in coastal areas (Guangxi 2,190, down 100; Guangdong not offered; Fujian 2,230). The novel coronavirus has impacted hundreds of countries and regions, intensifying global economic worries and resulting in a fall in global stocks. As Russia balked at making a further output cut proposed by the OPEC, Saudi Arabia started an oil price war. Consequently, oil prices were set for their biggest decline in 20 years, and crude slumped by 38% in last Friday and today. Also, U.S. soybeans closed down last Friday. Besides, rapeseed meal futures on Zhengzhou Commodity Exchange fall sharply today. But Chinese buyers continue to purchase Brazilian soybeans due to good crush margins of their futures. Moreover, China has granted tariff exemption on imported U.S. soybeans to some soybean crush enterprises. On the other hand, a decrease of demand for meats amid the novel coronavirus epidemic has also affected breeding industry, limiting meals prices. But rapeseed is in short supply due to continuous tensions between China and Canada, so the operation rate in oils mills is low. Last week, rapeseed meal stocks in coastal areas dropped by 33% to 12,000 tonnes. Except that, soybean meal inventories stay at a low level and spot goods have been sold out basically. And oils prices plummet. Thus, the price declines of rapeseed meal may be limited. Buyers can take a wait-and-see attitude.

Imported fishmeal: Imported fishmeal prices are stable with a partial decline of 100-200 yuan/tonne today and can be traded through negotiation. Peruvian Standard SD with 65% protein content is 11,500-12,000 yuan/tonne; Peruvian higher-quality SD with 65% protein content is 11,800-12,300 yuan/tonne; Peruvian higher-quality SD with 67% protein content is 12,300-12,900 yuan/tonne; and Peruvian Super Prime SD with 68% protein content is 12,800-13,100 yuan/tonne.The consumption of fishmeal is still slack at present, so that feed mill owners are buying according to immediate demand. In the meantime, traders are rush to clear storage as port stocks are increasing with fresh goods arriving at ports. Therefore, fishmeal prices are down partially today. However, Peru’s Ministry of Production has started its investigation of marine resource, and insiders expect new quota in 2020 to be low at around 1.0 mln tonnes. Traders are encouraged to prop up prices, which may limit downside space in fishmeal prices. In conclusion, fishmeal market is predicted to keep steady with a weakening trend in the near term. Stocks at port: Huangpu 61,000 tonnes, Fuzhou 31,000 tonnes, Shanghai 36,000 tonnes, Tianjin 1,000 tonnes, Dalian 14,000 tonnes, Fangchenggang 1,000 tonnes and 4,000 tonnes at other ports. FOB quotes from foreign merchants today: It is quoted steadily at 1,450 USD/tonne for Peruvian Standard with 65% protein content and 1,750 USD/tonne for Peruvian super with 68% protein content. Chilean Standard with 65% protein content is quoted steadily at 1,420 USD/tonne, and super with 68% protein content at 1,720 USD/tonne.

Cottonseed meal: Cottonseed meal prices decline by 10-50 yuan/tonne today. The trading volume of cottonseed meal is limited by narrow price spread between soybean meal and it. Also, the novel coronavirus epidemic is spreading around the world, lowering demand for meats and affecting breeding industry. Likewise, the demand from aquaculture has been in an off season. Consequently, the demand outlook of meals is worrisome. Besides, meals on DCE today fall back with low opens, and spot soybean meal decreases by 30-60 yuan/tonne. In this case, cottonseed meal prices are depressed. However, cottonseed oil continues to drop, so mills raise cottonseed meal price, which limits the price declines of it. It is expected that short-term cottonseed meal prices may fluctuate weakly.