Today (Apr. 3), the market for meals in China is shown as follows:

Soybean meal: The COVID-19 led to a sharp increase in people apply for the unemployment benefits in the U.S. and might caused a global economic recession, and there were concerns over subdued demand in U.S. soybean exports. US soybean futures fell last night, and meal futures also extend losses on the Dalian Commodity Exchange today. Soybean meal spot prices decline by 10-40 yuan/tonne in tepid trading. Specifically, the price settles at 2910-3250 yuan/tonne today. (Tianjin 3220, Shandong 3250-3300, Jiangsu 3210-3250, Dongguan 2930-2980, and Guangxi 2980-3000.) Brazil’s soybean vessels heading for China hit a record high of 10 mln tonnes in March, which usually takes about 45 days to arrive at China’s ports, so soybean arrivals at ports may reach 9 mln tonnes in May and June, respectively. But the demand for soybean meal in the second quarter remains not very optimistic, as the demand for meat products has been affected by the crippling catering services amid the fast-spreading pandemic. Hence, meal prices are curbed. However, soybean arrivals are not in huge amount in April, and many mills have been idled for soybean shortages now. Moreover, soybean and soybean meal stocks have both fallen to a six-and-a-half-year low, so mills now have no spot goods for sale and set very limited quantity for delivery. This has also forced some downstream feed plants to cut down or limit production. The tight supplies in spot goods may continue till late April and upcoming opening of schools will be favorable to pick up the demand for soybean meal, which will thus help limit the decline in spot soybean meal prices. Short-term soybean meal prices follow futures to fall and adjust, so buyers can wait for the moment.

Imported rapeseed meal: Imported rapeseed meal price declines further today, of which it settles down 30-90 yuan/tonne at 2,230-2,350 yuan/tonne in coastal areas (Guangxi 2,230, down 90; Guangdong not offered; Fujian 2,330, down 50). Due to considerable crush margins of soybean futures, China has sped up the purchase. Brazil’s soybean vessels heading for China hit a record high of 10 mln tonnes in March, so soybean arrivals at ports may reach 8.9 mln tonnes in May. And the demand outlook in the second quarter is not very optimistic amid the fast-spreading COVID-19. Thus, rapeseed meal price is dragged down by these factors. However, rapeseed crush still stays at a low level currently. Same goes for rapeseed meal inventories. Moreover, soybean arrivals in April is lower than expected, so the operation rate is still low in crushing mills on account of soybean shortage, and soybean meal stocks have down to a six-and-a-half-year low. In this case, it is helpful to limit price declines of rapeseed meal. Buyers can stay on the sideline and wait for low and stable price to make proper replenishment.

Imported fishmeal: Imported fishmeal prices are 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 13,500-14,000 yuan/tonne. Aquaculture, in which fishmeal is used as feed, has not yet been in full swing in northern China due to capricious weather conditions. In addition, there is a lack of bulk demand from downstream feed manufacturers, as they are not willing to buy at current high prices. The subdued trade in the market is limited the upward space of fishmeal prices. However, the Peruvian government has extended the state of emergency until April 12. Given this situation, fishing in the new season in its centre-north oceans is unable to carry out at present. Traders are propping up prices, bolstered by the forecast for a tight prospect in fishmeal supply. On the whole, with bullish factors outweighing, fishmeal market is predicted to stay stable with a strengthening trend in the short run. Stocks at port: Huangpu 55,000 tonnes, Fuzhou 30,000 tonnes, Shanghai 33,000 tonnes, Tianjin 1,000 tonnes, Dalian 8,000 tonnes, Fangchenggang 1,000 tonnes and 4,000 tonnes at other ports. FOB quotes from foreign markets today: It is quoted higher by 50 USD at 1,500-1,550 USD/tonne for Peruvian Standard with 65% protein content and steadily at 1,750 USD/tonne for Peruvian super with 68% protein content. Chilean Standard with 65% protein content is quoted higher by 50 USD at 1,470-1,520 USD/tonne, and super with 68% protein content steadily at 1,720 USD/tonne.

Cottonseed meal: Cottonseed meal prices are stable with partial declines of 30-50 yuan/tonne today. The downstream demand is poor. Besides, the coronavirus pandemic will likely result in global economy recession. Over the market concerns about weakening demand in U.S. soybeans exports, U.S. soybeans declined overnight. And today meals on DCE continue the falls, and spot soybean meal down by 10-40 yuan/tonne, which still drags down the cottonseed meal trading. But cottonseed oil factories mostly have no pressure from inventories with previous contract. And factories still prop up price due to the high cost. Therefore, the downward space of short-term cottonseed meal price is projected to be limited. Buyers can stay on the sideline on the correction.