Today (Apr. 15), the market for meals in China is shown as follows:

Soybean meal: The number of confirmed cases of COVID-19 in the United States surpassed 600,000 late on Tuesday, and dozens of U.S. meat processing plants had temporarily closed or cut down production, prompting concerns about a knock-on effect on demand for soybean meal widely used in feeding livestock. Moreover, crude oil prices shed more than 10% on Tuesday. Hence, U.S. soybean futures also slid lower Tuesday. But meal futures slightly rebound on the Dalian Commodity Exchange today. Soybean meal spot prices steadily jump higher by 10-20 yuan/tonne, attracting some low-level purchases. Specifically, the price settles at 2,960-3,200 yuan/tonne today. (Tianjin 3200, Shandong 3000-3250, Jiangsu 3180-3200, Dongguan 2960-2980, and Guangxi 2950-2960.) A majority of mills are idle in northern regions, lowering down the quantity in delivery notes and also constraining the deliveries. As for southern mills, they have very low soybean meal stocks, albeit with normal operation rates. The overall soybean meal stocks have fallen to a fresh low of less than 150,000 tonnes, leading to a tight supply in the spot market and cutting down production in several feed mills. Spot supply tensions could go down to the end of this month, so that downstream feed manufacturers have also lifted prices, which in turn supports soybean meal market. Short-term soybean meal prices are resilient and likely to keep range-bound. However, mills will significantly pick up soybean crush next week, for monthly soybean arrivals at ports are predicted to go over 9.8 mln tonnes from May-July. Hence, soybean meal prices will have some downward potential as its supply tensions may abate gradually. Buyers are suggested to remain cautious in chasing after high prices and to make appropriate replenishment on low forward basis.

Imported rapeseed meal: Imported rapeseed meal price increases today, of which it settles up 10-30 yuan/tonne at 2,310-2,420 yuan/tonne in coastal areas (Guangxi 2,320, up 10; Guangdong not offered; Fujian 2,370, up 10). The operation rate among rapeseed crushing mills is still low amid the tensions between China and Canada. And the downtime in oil plants gets longer due to soybean shortages, boosting rapeseed meal market. As the crush margins of soybean futures are still considerable, the monthly arrival of soybeans at domestic ports may be as high as 9.80 mln tonnes from May to July. And the operation rate will return to normal levels. On the other hand, global catering businesses have been hard hit by the coronavirus pandemic, directly impacting demand for meats, thereby restricting rapeseed meal price. Recently the upward momentum of rapeseed meal is still limited, and the overall market is likely to fluctuate at a narrow range tracking futures. Buyers are suggested to take rolling operating and make appropriate replenishment on the dips and remain cautious in chasing up price.

Imported fishmeal: Imported fishmeal prices are stable today and can be traded through negotiation. Peruvian Standard SD with 65% protein content is 12,000-12,300 yuan/tonne; Peruvian higher-quality SD with 65% protein content is 12,200-12,700 yuan/tonne; Peruvian higher-quality SD with 67% protein content is 12,800-13,100 yuan/tonne; and Peruvian Super Prime SD with 68% protein content is 14,000 yuan/tonne. Aquaculture has just got started in both northern and southern China, so the overall consumption of fishmeal is limited. In addition, downstream buyers are cautious now as fishmeal is at high prices. Port trading thus remains thin at present, which limits the upward space of fishmeal prices. However, President of Peru declared to extend the state of emergency till April 26th, as the pandemic is still sweeping all the world. It seems to be difficult for Peruvian fishermen to fix a date for starting in the new season. Moreover, port stocks available for sales are low, so that traders are stalling sales. On the whole, dominated by bullish factors, fishmeal market is predicted to maintain its strengthening trend in the short term. Stocks at port: Huangpu 48,900 tonnes, Fuzhou 27,800 tonnes, Shanghai 29,400 tonnes, Tianjin 1,100 tonnes, Dalian 8,960 tonnes, Fangchenggang 1,010 tonnes and 4,330 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 mainly keep steady with partial declines of 10-50 yuan/tonne. While the price up by 50 yuan/tonne due to the pricey cottonseed in individual regions. 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 downstream demand is sluggish, while cottonseed meal supply is stable. Accordingly, these factors depress partial cottonseed meal price to down. But the price of cottonseed remains high. Moreover, meals on DCE slightly rebound today, and spot soybean meal rallies by 10-20 yuan/tonne in stability. In this case, some factories up their offer. Nevertheless, the operation rate among soybean crushing mills will go back to normal next week. Once the tight supply is eased, the risk of falls in cottonseed meal will increase.