Today (Apr. 1), the market for meals in China is shown as follows:

Soybean meal: US soybean futures extended gains on Tuesday, but meal futures expand their early losses on the Dalian Commodity Exchange (DCE) today. Soybean meal spot prices follow to decline by 10-40 yuan/tonne in weaker trading. Specifically, the price settles at 3100-3300 yuan/tonne today. (Tianjin 3280, Shandong 3300-3320, Jiangsu 3280-3300, Dongguan 2950-2990, and Guangxi 3100-3120.) Brazil’s soybean shipments to China hit a record in March with a total of 9.26 mln tonnes shipped out as of March 30th, so soybean arrivals at ports may reach 8.9 mln tonnes in May. In addition, market sources said that China has agreed to resume Canadian canola imports. Therefore, soybean meal futures post losses, led by a decline in rapeseed meal. Besides, DCE meal futures expand losses today due to profit-taking after consecutive rallies. The prospect in demand for soybean meal is not so optimistic since the demand for meat products is reducing after food services are hit heavily by the fast-spreading pandemic. Hence, short-term soybean meal prices also follow futures to decline. However, with a decline in soybean crush, soybean meal stocks have fallen to a six-and-a-half-year low and most mills have no spot goods for sale now, hence, soybean meal spots are more resilient than futures. Buyers can wait for the moment. 

Imported rapeseed meal: Imported rapeseed meal price drops dramatically today, of which it settles down 100-150 yuan/tonne at 2,330-2,440 yuan/tonne in coastal areas (Guangxi 2,330, down 150; Guangdong not offered; Fujian 2,390, down 100). Sources said that China has allowed Canadian canola seed exports to continue, and this agreement was reached on a conference call between China’s Customs Administration and Canada’s Farm Ministry on Tuesday. Both sides also came to an agreement that the canola seed must contained less than 1% foreign material. In consequence, rapeseed meal futures suffered a setback on the news. However, rapeseed crush still stays at a low level currently. Same goes for rapeseed meal inventories. Moreover, the operation rate is low in domestic soyoil plants and the soybean meal stocks are super low, so the fundamentals are still good. As the news of resume of Canadian canola seed still bears markets, short-term rapeseed meal pares gains, so buyers can take a wait-and-see attitude.

Imported fishmeal: Imported fishmeal prices are stable with a partial rise 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, a partial rise of 200 yuan/tonne; and Peruvian Super Prime SD with 68% protein content is 13,500-13,600 yuan/tonne. Peru’s President has ordered an extension of state of emergency until April 12th in a bid to curb the spread of the COVID-19. This is a piece of news that still affects the market, as the country is likely to postpone the time to start fishing in its centre-north oceans. Traders are optimistic about the market and industry insiders even forecast a tight outlook in fishmeal supply. Traders are trying to sell at a higher price, which is good to the market. However, aquaculture has not been at full swing in northern China due to the capricious weather conditions, so the consumption of fishmeal is not huge. In addition, downstream feed plants are unwilling to buy at current high prices and just taking hand-to-mouth buying. Hence, there is limited upward space for fishmeal prices. Overall, predominated by bullish factors, fishmeal market is predicted to stay stable with a strengthening trend in the near term. Stocks at port: Huangpu 58,000 tonnes, Fuzhou 32,000 tonnes, Shanghai 30,000 tonnes, Tianjin 1,000 tonnes, Dalian 8,600 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 individual declines of 50 yuan/tonne today. The price spread between soybean meal and cottonseed meal is unreasonable. And downstream demand is poor. In addition, rapeseed meal and meals futures on DCE sharply decline today on the news that China will resume imports of Canadian canola seed, and spot soybean meal down by 10-40 yuan/tonne. Hence, cottonseed meal price is depressed. And the price in some regions goes down. But oil plants still prop up prices due to the low stocks of cottonseed meal and high cost. As short-term cottonseed meal market is projected to pare gains, buyers can wait and see.