Today (Mar. 26), the market for meals in China is shown as follows:

Soybean meal: Brazilian farm town Canarana in Mato Grosso state would amend its coronavirus decree to allow global trading companies such as Cargill and Cofco to ship farm produce out of the city in the next ten days, and China was buying up on Brazilian soybeans due to handsome crush margins; hence, US soybean futures closed with losses on last night (Wednesday), and meal futures expand their early losses on the Dalian Commodity Exchange today. Soybean meal spot prices steadily drop by 20-40 yuan/tonne with subdued trading. Specifically, the price settles at 3080-3210 yuan/tonne today. (Tianjin 3210, Shandong 3200-3245, Jiangsu 3140-3215, Dongguan 3090-3100, and Guangxi 3080-3150.) Investors settled up positions after consecutive rallies, and the breeding is also affected by the decline in demand for meat products under the epidemic, so soybean meal trading is constrained, and its prices snap off rises to fluctuate. However, it now takes more time to transport, load and quarantine grains, although ports are operating normally in South America. In this case, soybean arrivals at China’s ports are forecast to be only 6.88 mln tonnes, with about 500,000 tonnes postponed. Mills now are keeping low operation rates, so soybean meal may stay in tight supply till late April. In addition, farmers are active making hog replenishment due to considerable margins in breeding, so the demand from feed enterprises are decent recently. Mills are stalling sales due to tight supplies, which will continue to support the prices. Overall, soybean meal market will maintain at the high level until its tight supply prospect abates. And buyers can wait for low and stable prices to make appropriate replenishment.

Imported rapeseed meal: Imported rapeseed meal prices decline today, of which it settles down 20-70 yuan/tonne at 2,330-2,440 yuan/tonne in coastal areas (Guangxi 2,330, down 70; Guangdong not offered; Fujian 2,390). Investors take profit after a continuous climb. And the demand for meats goes down amid the pending coronavirus pandemic, which also affects breeding industry. Accordingly, these are bearish for meals prices. But rapeseed is in tight supply amid the tensions between China and Canada, so the operation rate in oil mills is low, the same goes for rapeseed meal stocks. Moreover, spot soybean meal is in short supply and there are not many soybeans arriving at ports in April. And many oil plants also plan to halt the operation in April due to a shortage of soybean. In addition, the aquaculture is recovering with the weather warming up and even backs to normal in some places. All these factors bolster the rapeseed meal price. It is predicted that short-term rapeseed meal may not fall too much, and there is still a downside risk of price after an ease of short supply.

Imported fishmeal: Imported fishmeal prices are unchanged 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. It will take time for aquaculture to get started in northern regions, although the weather is warming up at present. Meanwhile, hog stocks are at a low level, so the demand in this industry is also limited. Besides, downstream buyers are cautious in purchasing on account of high-priced fishmeal at present. Hence, there is limited space for fishmeal to go upward. However, Peru has been in a 15-day national emergency lockdown due to the spread of the coronavirus, and its Minister of Environment said that there is a possible extension in quarantine if related measures are violated. Hence, market participants speculate that the country will postpone the time to start fishing in the centre-north regions. Traders in China are thus encouraged to prop up prices. In conclusion, fishmeal market is predicted to stay stable with a strengthening trend in the near term.Stocks at port: Huangpu 66,000 tonnes, Fuzhou 32,000 tonnes, Shanghai 40,000 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 price stays stable with partial decline of 50-70 yuan/tonne today. The demand for cottonseed meal is limited by narrow price spread between soybean meal and it. Also, 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. Besides, meals on DCE fall back with low opens today, and spot soybean meal steadily down by 20-40 yuan/tonne. Thus, these factors drag price in some regions to drop. But oil mills have low stocks of cottonseed meal. Moreover, soybean meal is also in short supply, which may last until late April. Consequently, the price declines of cottonseed meal are limited. It is predicted that short-term cottonseed meal market may follow soybean meal to fluctuate at high points.