Today (Apr. 9), the market for meals in China is shown as follows:

 

Soybean meal: US soybean futures closed further lower on Wednesday as traders squared positions ahead of a monthly USDA WASDE Report and due to the spread of the novel coronavirus. Meal futures swing slightly 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 2960-3240 yuan/tonne today. (Tianjin 3240, Shandong 3190-3200, Jiangsu 3200-3230, Dongguan 2960-3100, and Guangxi 2980-3000.) Mills in Rizhao and Huanghai have resumed soybean crush ahead of schedule. Domestic mills will gradually pick up operation rates from the middle of this month, and soybean arrivals at domestic ports could reach an average of 9.5 mln tonnes both in May and June. Global foodservices are crippling amid the pandemic, which also affects the meatpacking. Domestic distributors are booking profits by selling soybean meal on the high prices, which also weighs on the market. Nevertheless, a slew of mills are idle for a lack of soybeans at present, so that soybean crush is forecast to fall further to only 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 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. Downstream feed manufacturers are also raising prices. Spot soybean meal prices are resilient, and may keep range-bound in the short run.

 

Imported rapeseed meal: Imported rapeseed meal price goes down today, of which it settles down 10-50 yuan/tonne at 2,280-2,400 yuan/tonne in coastal areas (Guangxi 2,300, down 50; Guangdong not offered; Fujian 2,350). The crush margins of soybean futures are considerable, attracting Chinese buyers’ purchase. And the soybean arrivals in China forecast to reach an average of 9.5 mln tonnes in May and June. Besides, the demand outlook in the second quarter is not optimistic amid fast-spreading coronavirus pandemic worldwide. Thus, rapeseed meal price is dragged down by these factors. However, rapeseed crush stays at low levels amid continuous tensions between China and Canada. And crushing mills still halt the operation due to soybean shortages, and spot soybean meal inventories in coastal regions decline to a record low, which is favorable to limit price declines of rapeseed meal. Therefore, buyers can stay on the sideline and make appropriate replenishment upon low and stable price.

 

Imported fishmeal: Imported fishmeal prices are higher today and can be traded through negotiation. Peruvian Standard SD with 65% protein content is 12,000-12,300 yuan/tonne, a rise of 200 yuan/tonne; Peruvian higher-quality SD with 65% protein content is 12,200-12,700 yuan/tonne, a rise of 200 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 14,000 yuan/tonne, a partial rise of 500 yuan/tonne. President of Peru declared to extend the state of emergency till April 26th, as the novel coronavirus has not been brought under control across the world. It seems that it will be difficult for Peruvian vessels to start fishing in the new season. And in China, fishmeal stocks are reducing at ports with fewer and fewer cargoes arriving, so traders have a sentiment for higher prices. Hence, fishmeal prices broadly go up today. 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 50,000 tonnes, Fuzhou 30,000 tonnes, Shanghai 30,000 tonnes, Tianjin 1,000 tonnes, Dalian 7,000 tonnes, Fangchenggang 1,000 tonnes and 4,000 tonnes at other ports. FOB quotes from foreign markets today: It is quoted steadily at 1,470 USD/tonne for Peruvian Standard with 65% protein content and 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, which leads cottonseed meal price to continue decreasing in some regions. But cottonseed oil factories mostly have no pressure from inventories with previous contract. Moreover, the cost remains high and the tight supply of spot soybean meal may last until late April. It is expected that downward momentum of cottonseed meal will keep slowing.