Today (Apr. 8), the market for meals in China is shown as follows:

Soybean meal: US soybean futures closed lower on Tuesday as investors squared positions and on concerns over the demand during the novel coronavirus. And meal futures swing to slightly rebound on the Dalian Commodity Exchange today. Soybean meal spot prices steadily fluctuate by 10-20 yuan/tonne in tepid trading. Specifically, the price settles at 2930-3230 yuan/tonne today. (Tianjin 3230, Shandong 3200-3220, Jiangsu 3200-3230, Dongguan 2930-3100, and Guangxi 2980-3020.) There is a huge decline in operation rates as soybean arrivals at ports are small in April, so soybean crush is predicted to fall further to 1.35 mln tonnes this week. Spot soybean meal stocks have dropped to a low level of less than 170,000 tonnes in coastal mills. Hence, mills now have no spot goods for sale and set very limited quantity for delivery. This has also forced some downstream feed mills to cut down or limit production. The tight supplies in spot goods may continue till late April. Spot soybean meal prices are resilient at present. But Chinese importers are buying up on soybeans in foreign markets due to handsome crush margins, and soybean arrivals at domestic ports could reach an average of 9.5 mln tonnes both in May and June. And the demand for meat products are subdued as global catering businesses are crippling under the pandemic. Meanwhile, distributors are active selling at high prices, which is also a curb on the market. Soybean meal prices have slowed down declines in the short run and may turn to fluctuate at a narrow range, and if tight supplies abate, there will be some downside potential.

Imported rapeseed meal: Imported rapeseed meal price rises today, of which it settles up 10 yuan/tonne at 2,280-2,400 yuan/tonne in coastal areas (Guangxi 2,350; Guangdong not offered; Fujian 2,340). The operation rate in rapeseed crushing mills is low amid continuous tensions between China and Canada. Besides, it sees lower arrival of soybeans in April, so crushing mills may still halt the operation due to soybean shortages. This week, soybean crush is predicted to further declines by 1.35 mln tonnes and spot soybean meal inventories in coastal regions will down to a historical low of less than 170,000 tonnes, boosting rapeseed meal market. But the total soybean arrivals initially forecast at 19.1 mln tonnes in May and June, for the crush margins of soybean are considerable. On the other hand, the coronavirus pandemic severely hits global catering services, impacting the demand for meats, thereby depressing rapeseed meal price.  Therefore, the upward momentum of rapeseed meal is still limited in near term, and the overall market is likely to fluctuate at a narrow range. Buyers had better make proper replenishment on the dips and remain cautious in chasing up prices too high.

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; and Peruvian Super Prime SD with 68% protein content is 13,500-14,000 yuan/tonne, a partial rise of 300 yuan/tonne. The maritime institute of Peru, known as Imarpe, will likely carry out a cruise to evaluate fish resources in north-centre oceans of the country on April 13th, and to complete the evaluation at the end of April, so as to setting related fishing quotas. Hence, the first season could begin at the beginning or middle of May at the earliest. The fishmeal arrivals at ports are reducing, and port stocks also declining, so traders tend to support and raise prices in view of lower stocks. However, the overall consumption of fishmeal is limited now, although aquaculture has started in northern China. In addition, downstream buyers are cautious at current high prices and just take hand-to-mouth buying, which also limits the fishmeal market. The subdued trade in the market is limited the upward space of fishmeal prices. 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 lower by 30 USD at 1,470 USD/tonne for Peruvian Standard with 65% protein content and also lower by 30 USD at 1,700 USD/tonne for Peruvian super with 68% protein content. Chilean Standard with 65% protein content is quoted steadily at 1,470-1,520 USD/tonne, and super with 68% protein content steadily at 1,720 USD/tonne.

Cottonseed meal: Cottonseed meal prices keep steady with partial declines of 10-50 yuan/tonne today. The coronavirus pandemic severely hits global catering services, impacting the demand for meats. And the demand from aquaculture has been in an off season, so the downstream demand for cottonseed meal is poor. In consequence, factories have few new orders, depressing cottonseed meal price. But cottonseed oil factories mostly have no pressure from inventories with previous contract. Moreover, meals on DCE fluctuate to rebound today, which will limit the price declines of cottonseed meal. It is expected that downward momentum of cottonseed meal will slow.