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

Soybean meal: US soybean futures ended sharply higher on Thursday, supported by a pick-up in exports and technical buying, as well as a rise in crude price. Meal futures also expand their early gains on the Dalian Commodity Exchange today. Soybean meal spot prices follow to increase by 50-80 yuan/tonne, with some purchases on low-level basis and tepid trade for spot contracts. Specifically, the price settles at 2950-3070 yuan/tonne today. (Tianjin 3070, Shandong 3000-3010, Jiangsu 3000-3040, Dongguan 2950-2960, and Guangxi 2960-2970.) Timbues, a key port town in northern Rosario, Argentina's main grains export hub, posted an order on the government website that it would suspend port activities as part of efforts to contain the spread of the coronavirus. The suspension was reported to last till April 2nd. Soybean exports in Argentina will get effected if port activities enter into a suspension, which will thus bolster US soybeans. And in China, soybean imports are low in March and will probably be lower than expected in April, so mills now are keeping low operation rates. Soybean meal stockpiles are small now, but its demand is decent from feed enterprises, which helps support the prices. Underpinned by the tight supply, soybean meal prices are predicted to maintain its strengthening trend in the near term. Participants can keep an eye on whether soybean shipments and logistics in top exporters will be disrupted or not. 

Imported rapeseed meal: Imported rapeseed meal price rises today, of which it settles up 50-70 yuan/tonne at 2,280-2,370 yuan/tonne in coastal areas (Guangxi 2,280, up 50; Guangdong not offered; Fujian 2,340, up 70). Due to the coronavirus pandemic, the Mayor of Timbues, Argentina said that they have already closed Port San Lorenzo and will also close some biggest soybean crushers in the world. It triggers market’s fears about the logistics and supply of soybean. And U.S. soybeans surge on the news. Moreover, the arrivals of soybean in China in later period may be lower than expected. Additionally, rapeseed is in short supply amid continuous tensions between China and Canada, so the operation rate in oils mills stays at a low level. As there are not many soybeans arriving at port this month, many oil mills have lacked of soybeans. Consequently, soybean meal spots stage a strong performance under a short supply, which will support rapeseed meal price. But also, it takes time to totally recover the overall demand in China affected by coronavirus, curbing the rises of meals prices. Therefore, short-term rapeseed meal price is likely to stay strong. Buyers had better not chase up prices too excessively.

Imported fishmeal: Imported fishmeal prices are 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 12,800-13,300 yuan/tonne.The Peruvian government issued a state of emergency to contain the spread of the novel coronavirus, a move that would possibly limit the exports of fishmeal. In the meantime, its Ministry of Production also announced to cancel test fishing activities in southern waters and left the fishing date pending. Therefore, Chinese traders are propping up fishmeal prices. However, the consumption of fishmeal is small in China at present, as aquaculture has not started in northern regions in spite of a rise in temperature. And the demand from hog breeding is also limited by small hog population. Hence, feed factories are not active purchasing and just buy on immediate demand. There is limited upward space for fishmeal prices, constrained by the overall demand. In conclusion, fishmeal market is predicted to keep steady with a strengthen trend in the near term. Stocks at port: Huangpu 65,000 tonnes, Fuzhou 31,000 tonnes, Shanghai 38,000 tonnes, Tianjin 1,000 tonnes, Dalian 12,000 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 are stable with some rises of 10-80 yuan/tonne today. In individual regions, the prices drop by 50 yuan/tonne. Oil mills have low stocks of cottonseed meal. Besides, meals on DCE surge after high opens today, and soybean meal spots also rise by 50-80 yuan/tonne. Under the support of these factors, partial cottonseed meal prices go up. However, the demand for cottonseed meal is limited by narrow price spread between soybean meal and cottonseed meal. Likewise, the demand from aquaculture also has been in an off season. Therefore, the price rises of cottonseed meal are curbed by these factors, and short-term price will likely fluctuate to stay strong.