Today (Mar. 12), the market for meals in China is shown as follows:

Soybean meal: The World Health Organization officially characterized the COVID-19 as a pandemic on Wednesday. With more than 1,200 confirmed cases, the United States announced a 30-day ban on travel from all European countries. And the NBA also declared to postpone its season after a player tested positive for coronavirus. The faint US stock market suffered a heavy loss, crude prices saw a correction, and US soybean futures closed with losses on Wednesday. Meal futures fall after low opens on the Dalian Commodity Exchange today. Soybean meal spot prices drop by 10-30 yuan/tonne in thin trading. Specifically, the price settles at 2780-2860 yuan/tonne today. (Tianjin 2860, Shandong 2805-2830, Jiangsu 2820-2830, Dongguan 2790-2790, and Guangxi 2810-2860.) Due to considerable crush margins on the DCE, China bought about 17 cargoes of Brazilian soybeans on Tuesday and Wednesday. Soybean imports have been estimated at 24.50 mln tonnes from April to June. As the epidemic is spreading across many countries and regions, the decline in demand for meat products will also affect the breeding. Domestic feed millers have seen an over 20% fall in March sales. The gloomy prospect in demand for soybean meal will hit its prices. However, some mills have suspended production this month, and those who have low stocks and have sold out spot goods are mainly making delivery of contracts. In the meantime, farmers are actively replenishing hog stocks in view of handsome breeding margins, and over 80% of feed enterprises have resumed work; hence, the demand for soybean meal is getting better in the short term. Oil futures have crashed on the DCE, so that mills are trying to prop up meal prices, which helps limit the decline in soybean meal prices. DCE futures fall into corrections due to great mental stress caused by losses in stock market and crude prices, so buyers can wait for the moment. 

Imported rapeseed meal: Imported rapeseed meal price declines today, of which it settles down 10-20 yuan/tonne at 2,220-2,300 yuan/tonne in coastal areas (Guangxi 2,250; Guangdong not offered; Fujian 2,270, down 10). The World Health Organization officially characterized the COVID-19 as a pandemic on Wednesday. With more than 1,200 confirmed cases, the United States announced a 30-day ban on travel from all European countries. And the NBA also declared to postpone its season after a player tested positive for coronavirus. The faint US stock market suffered a heavy loss and crude prices saw a correction, and US soybean futures closed with losses on Wednesday. And meals futures in China fall back with low opens today. Due to the considerable crush margins of Brazilian soybean futures, soybean arrivals from April to June will likely be as high as 24.5 mln tonnes. Otherwise, the demand for meats goes down on account of the spread of the novel coronavirus epidemic worldwide, which has also affected breeding industry. Also, demand from aquaculture has been in an off season, curbing meals prices. However, rapeseed is in short supply amid unclear relations between China and Canada, so the operation rate in oils mills is low and soybean meal inventories stay at a low level. Besides, many oil plants halt the operation as a result of lack of soybean, so the soybean meal stocks are also low. Beyond that, oil mills are inclined to prop up rapeseed meal price attributed to a steep fall in oils prices, limiting price declines of it. Therefore, short-term rapeseed meal price may fluctuate weakly. Buyers can wait and see.

Imported fishmeal: Imported fishmeal prices go stable 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. Peru’s Ministry of Production has initiated an investigation into its marine resources, and insiders expect the country will set its new-season quota at a relatively low level of around 1.0-1.5 mln tonnes, so traders are optimistic about the market prospect. And some traders are propping up prices as most fishmeal stocks are held at main domestic ports. However, the consumption of fishmeal remains slack at present, so feed enterprises tend to take hand-to-mouth buying. In addition to dismal demand, fresh goods are arriving at ports, sending port stocks mounting higher gradually, so that traders are under selling pressure. In conclusion, fishmeal market is predicted to keep steady with a strengthening trend in the near term. Stocks at port: Huangpu 63,000 tonnes, Fuzhou 31,000 tonnes, Shanghai 37,000 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.