Today (Apr. 20), the market for meals in China is shown as follows:

Soybean meal: US soybean futures fell last Friday, and meal futures expand their early losses on the Dalian Commodity Exchange today. Soybean meal spot prices steadily decline by 10-30 yuan/tonne in thinner trading. Specifically, the price settles at 2,910-3,140 yuan/tonne today. (Tianjin 3140, Shandong 3080-3100, Jiangsu 3100-3130, Dongguan 2910-2940, and Guangxi 2900-2920.) Considerable crush margins for Brazilian soybeans on the DCE continue luring Chinese importers to make purchases and there will be a monthly average of nearly 10 mln tonnes of soybean vessels arriving in China from May-July. With soybean cargoes arriving at ports, soybean crush rose to 1.58 mln tonnes last week and may continue the uptrend to 1.75 mln tonnes and 1.85 mln tonnes in the coming two weeks, respectively. And this will gradually add to soybean meal supply. Distributors grow a sentiment to dump stocks in hand, so that they have made bigger price cuts than oil mills. But weekly soybean meal stocks have moved further lower by 15% to 140,000 tonnes last week, so mills are still trying to prop up prices. Merely, as oil mills are forecast to pick up operation rates sharply, so that distributors have a sentiment to book profits. Some spot prices and nearby basis still have some downside potential. Buyers can wait for the moment.

Imported rapeseed meal: Imported rapeseed meal price declines today, of which it settles down 10-20 yuan/tonne at 2,270-2,360 yuan/tonne in coastal areas (Guangxi not available; Guangdong not available; Fujian 2,310, down 20). Chinese buyers keep purchasing soybean due to the considerable crush margins of its futures, and the monthly arrival of soybeans at domestic ports may be as high as 9.8 mln tonnes from May to July. Last week, soybean crush rallied to 1.58 mln tonnes. Likewise, soybean crush will go back to higher levels which respectively forecasts at 1.75 mln tonnes next week and 1.85 mln tonne the week after next. Accordingly, soybean meal supply will gradually increase. In addition, the coronavirus pandemic has greatly impacted global catering businesses, directly affecting demand for meats. Consequently, rapeseed meal prices are curbed by these factors. However, the operation rate in rapeseed crushing mills still stays at a low level amid tensions between China and Canada. Last week, rapeseed meal stock in coastal areas decreased by 41% to 14,000 tonnes, limiting price declines of rapeseed meal tentatively. Buyers can take a wait-and-see attitude as rapeseed meal price is still fluctuating to drop.

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. Institute of the Sea of Peru, also known as Imarpe, has launch a new research cruise on April 13, but Peru has extended its nationwide lockdown to contain the spread of coronavirus in the country until April 26, casting doubt on fishing in the new season in north-centre oceans. Meanwhile, port stocks of Super Prime fishmeal are of low levels in China at present, shoring up traders to stall sales and support prices. However, domestic consumption of fishmeal is small in the aquaculture, and downstream buyers remain cautious at current high prices; hence, the trading is subdued at ports. On the whole, fishmeal market still has some upward potential in the short term. Stocks at port: Huangpu 50,000 tonnes, Fuzhou 27,000 tonnes, Shanghai 33,000 tonnes, Tianjin 1,000 tonnes, Dalian 10,000 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 mainly stay stable with partial declines of 20-90 yuan/tonne. Meals on Dalian Commodity Exchange fall back after low opens, and spot soybean meal steadily declines by 10-30 yuan/tonne. Cottonseed meal trading is weak. Besides, cottonseed meal market will continue falling back after easing the tight supply of soybean meal, hitting cottonseed meal market confidence. Consequently, the price keeps decreasing in some regions. Additionally, inland oil plants are passive in recovering the production and even have a plan of shutting down factories to overhaul recently. Furthermore, cottonseed price remains high with not much inventory, so manufacturers are reluctant to slash price under high cost. It is predicted that the operation rate among soyoil crushing mills will rise sharply this week, which may raise the risk of paring back for cottonseed meal price.