Today (Mar. 24), the market for meals in China is shown as follows:

Soybean meal: The market was expecting a rise in soybean meal consumption as supplies of DDGS would reduce as crashing crude prices led to a slowdown in ethanol production; and soybean exports were bullish in the USDA report. Hence, US soybean futures further surged on Monday. But meal futures pare their early gains to move lower on the Dalian Commodity Exchange today due to profit-taking. Soybean meal spot prices steadily increase by 10-20 yuan/tonne in weaker trading. Specifically, the price settles at 3060-3180 yuan/tonne today. (Tianjin 3180, Shandong 3080-3120, Jiangsu 3130-3150, Dongguan 3000-3060, and Guangxi 3050-3140.) Workers at Santos port, Brazil, called off the vote for a strike on Monday, so logistics are normal both in Brazil and Argentina at present. Buyers are cautious about further higher prices, which is bearish to meal prices. But mills now are keeping low operation rates for soybean shortages, so soybean meal stocks continue to drop by 26% to a very low-level of 320,000 tonnes and mills are stalling sales. The price rise is smaller for the moment, but the space will also be limited even if there are corrections, until the tight supply abates. The overall soybean meal prices will keep a strengthening trend, and buyers can wait as meal futures are swinging for the moment.

Imported rapeseed meal: Imported rapeseed meal prices decline in stability today, of which it fluctuate by 10-20 yuan/tonne at 2,380-2,470 yuan/tonne in coastal areas (Guangxi 2,380, down 20; Guangdong not offered; Fujian 2,400). Dock workers at Brazil’s Santos port have called off the strike vote that had been scheduled for Monday, and Argentina announces that port operation will remain normal, and the supply speculation in South America is temporarily paused. Additionally, the trading volume is curbed by a price hike, which is bearish for meals price. But rapeseed is in tight supply amid the tensions between China and Canada, so the operation rate in oil mills is low. Moreover, many soybean oil plants have halted the production, which leads soybean meal stocks to fall by 26% to an extremely low level of 320,000 tonnes. In addition, the aquaculture in South area is likely to start slowly with the weather warming up. And short-term rapeseed meal will not fall too much and still maintain a strong trend as a whole. Buyers can just stay on the sideline due to the correction.

Imported fishmeal: Imported fishmeal prices go stable today and can be traded through negotiation. Peruvian Standard SD with 65% protein content is 11,700-12,100 yuan/tonne; Peruvian higher-quality SD with 65% protein content is 12,000-12,500 yuan/tonne; Peruvian higher-quality SD with 67% protein content is 12,600-13,000 yuan/tonne; and Peruvian Super Prime SD with 68% protein content is 13,200-13,300 yuan/tonne. Under the influence of the novel coronavirus, Peru has been in a 15-day emergency lockdown, including all its borders, so fishmeal exports in this country are likely to be limited. Moreover, its Ministry of Production has canceled test fishing activities in southern waters. And some industry insiders even speculate that the country will postpone the time to start fishing in the centre-north regions. Hence, traders are encouraged to raise prices. However, the consumption of fishmeal in aquaculture is not much, and also in hog breeding due to low hog stocks. Therefore, there is limited upward space for fishmeal prices under dismal demand. Overall, fishmeal market is predicted to stay stable with a strengthening trend in the near term. Stocks at port: Huangpu 65,000 tonnes, Fuzhou 32,000 tonnes, Shanghai 39,000 tonnes, Tianjin 1,000 tonnes, Dalian 10,000 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 further increase by 50-150 yuan/tonne today. Oil mills have low stocks of cottonseed meal. Besides, soybean meal on DCE rises in early morning trading, offering support to cottonseed meal market. And cottonseed meal also goes up. However, the demand for cottonseed meal is limited by narrow price spread between soybean meal and it. Likewise, the demand from aquaculture also has been in an off season. Owing to the resistance psychology of downstream enterprises amid a steep rise in cottonseed meal, there are not many new orders. Thus, short-term prices will likely follow soybean meal to stay strong.