Today (Apr. 21), the market for meals in China is shown as follows:

Soybean meal: As global demand crumbled amid coronavirus pandemic, West Texas Intermediate oil prices collapsed into the negative territory for the first time ever on Monday, of which May contract fell $55.90 or 306% to settle at negative $37.63 a barrel. In the wake of this, US soybean futures closed lower. Meal futures expand their early losses on the Dalian Commodity Exchange today. Soybean meal spot prices decline by 10-30 yuan/tonne in thinner trading. Specifically, the price settles at 2880-3100 yuan/tonne today. (Tianjin 3100, Shandong 3080-3000, Jiangsu 3050-3080, Dongguan 2880-2930, and Guangxi 2890-2900.) 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 will pick up to a relatively high level in coming two weeks. This will gradually add to soybean meal supply, so that distributors grow a sentiment to dump stocks in hand and make bigger price cuts than oil mills. Soybean meal stocks have fallen 15% to 140,000 tonnes last week and oil mills are still limiting quantity for delivery, but distributors still have a strong sentiment to clear stocks with concerns over huge soybean cargoes arriving at ports; hence, soybean meal spot prices still have downside potential. Buyers can wait for the moment.

Imported rapeseed meal: Imported rapeseed meal price declines today, of which it settles down 10 yuan/tonne at 2,260-2,350 yuan/tonne in coastal areas (Guangxi 2,280; Guangdong not available; Fujian 2,300, down 10). Chinese buyers keep purchasing South American soybeans due to the considerable crush margins of futures, and the monthly arrival of soybeans at domestic ports is expected to reach approximate 10 mln tonnes from May to July. Likewise, soybean crush will rise to higher levels over the next two weeks. Accordingly, soybean meal supply will gradually increase. In addition, the coronavirus pandemic has greatly impacted global catering businesses, dragging down rapeseed meal price. However, the operation rate in rapeseed crushing mills still stays at a low level amid tensions between China and Canada, and rapeseed meal stocks continue falling and soybean meal stocks hit a record-low. Therefore, oil plants prop up price, limiting declines of rapeseed. Buyers can take a wait-and-see attitude as rapeseed meal price has not stopped dropping yet.

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 13,200-13,300 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 and will release results on April 25. Ahead of this, Chinese traders will have little willing to adjust prices, and low stocks at ports will continue to support them to stall sales. 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 are stable today. U.S. crude oil historically crashed to below zero for the first time ever on Monday, and the price for May delivery plunged by $55.9 at $-37.63 per barrel, with a decline of 306%. In consequence, U.S. soybeans closed lower on the news. Today, meals on Dalian Commodity Exchange fall back after low opens, and spot soybean meal down by 10-30 yuan/tonne. Besides, cottonseed meal will continue falling after easing the tight supply of soybean meal that market concerns about, hitting cottonseed meal market confidence. Furthermore, cottonseed price remains high with not much inventory, so manufacturers prop up price under high cost, which leads cottonseed meal to be resilient tentatively. 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. Buyers can wait and see.