Today (Apr. 16), the market for meals in China is shown as follows:

Soybean meal: U.S. soybean futures slid further lower on Wednesday on concerns over the demand for soybean meal after several U.S. meat processing plants had temporarily closed production due to the pandemic. Meal futures expand their early losses on the Dalian Commodity Exchange today. Soybean meal spot prices steadily decline by 10-20 yuan/tonne in thinner trading. Specifically, the price settles at 2,950-3,200 yuan/tonne today. (Tianjin 3170, Shandong 3000-3240, Jiangsu 3180-3200, Dongguan 2950-2980, and Guangxi 2950-2960.) Considerable crush margins on the DCE continue luring Chinese importers to buying up on soybeans. Brazilian soybean exports may hit a record monthly high of 13.8 mln tonnes in April, of which some 10 mln tonnes may be heading for China. Mills will pick up soybean crush to a normal level next week, and this will add to soybean meal supply. Downstream buyers are concerned about a decline in prices and remain cautious now, which thus curbs soybean meal prices. Merely, 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. Some feed mills have also sent bound to production for a lack of soybean meal. It will still take time to ease current supply tensions in spot market, which will help limit the decline in soybean meal prices. In the short term, soybean meal spot prices will have smaller declines than futures and remain range-bound, which is mainly contributed to its tight supplies. But once supply increases, there will come some downside pressure, especially for nearby and spot contracts, so participants need to remain cautious.

Imported rapeseed meal: Imported rapeseed meal price declines today, of which it settles down 10-30 yuan/tonne at 2,290-2,390 yuan/tonne in coastal areas (Guangxi 2,320, flat; Guangdong not offered; Fujian 2,350, down 20). Chinese buyers keep purchasing soybeans due to the considerable crush margins of its futures, and the monthly arrival of soybeans at domestic ports may reach up to early 10 mln tonnes from May to July. Moreover, the operation rate among crushing mills is gradually picking up, which will ease the tight supply. Likewise, the COVID-19 is rapidly spreading around the world. Consequently, rapeseed meal prices are dragged down by these factors. However, rapeseed crush stays at low levels amid tensions between China and Canada. Also, the downtime in soyoil mills gets longer due to a shortage of soybean, and spot soybean meal stocks in coastal regions down to a record low. This is favorable to limit price declines of rapeseed meal. Buyers can take a wait-and-see attitude or buy on immediate demand. 

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 IMARPE to start anchovy production season on May 2. 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 50,000 tonnes, Fuzhou 27,000 tonnes, Shanghai 31,000 tonnes, Tianjin 1,000 tonnes, Dalian 9,500 tonnes, Fangchenggang 1,000 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 stay stable with partial declines of 50 yuan/tonne. Some meat processing plants in U.S have suspended production due to the coronavirus pandemic. And U.S. soybeans dropped further overnight over the traders’ concerns about declining demand for soybean meal. Besides, meals on Dalian Commodity Exchange fall back after low opens, and spot soybean meal steadily down by 10-20 yuan/tonne. With tepid trading in cottonseed meal market, partial price continues decreasing. But the price of cottonseed remains high. Additionally, the operation rate in cottonseed crushing mills falls recently, so manufacturers tend to prop up price. Nevertheless, the operating among soybean crushing mills will go back to normal next week, which will see an increase of soybean meal supply. Thus, cottonseed meal prices are still at risk in paring back.