Today (Apr. 24), the market for meals in China is shown as follows:

 

Soybean meal: U.S. soybean futures ended further higher on Thursday on a bullish export sales report. But it is a bearish news to domestic market, so that meal futures swing to decline on the Dalian Commodity Exchange today. Soybean meal spot prices steadily fluctuate at a range of 10-20 CNY/tonne in tepid trading. Specifically, the price settles at 2900-3060 CNY/tonne today. (Tianjin 3060, Shandong 2980-3000, Jiangsu 2970-3010, Dongguan 2900-2950, and Guangxi 2900-2950.) It can take some time to see growing supplies in soybean meal market, and some oil mills in north China have even sold out May contracts. Oil mills are propping up prices, which is good to the market. However, it is bearish news that China is to buy more U.S. soybeans. In addition, Chinese buyers have been purchasing Brazilian soybeans due to decent crush margins, and it is forecast that a monthly average of 9.8 mln tonnes of soybean vessels will arrive in China from May-July. Given this, oil mills have begun to pick up soybean crush to a relatively high level from this week. On the demand front, catering businesses are hit severely by the spread of the coronavirus across the world, which also leads to a decline in the demand for meat products. Hog and broiler prices are both declining, which affects the market confidence. Out of such bearish factors, distributors become willing to make shipments to book profits. Overall, soybean meal market will have limited upward impetus and remain not optimistic. Buyers can wait or buy on immediate demand.

 

Imported rapeseed meal: Imported rapeseed meal rises in price today, of which it settles up 10-20 CNY/tonne at 2,310-2,400 CNY/tonne in coastal areas (Guangxi 2,360; Guangdong not available; Fujian 2,340). The operation rate among rapeseed crushing mills is still low amid tensions between China and Canada. As aquaculture will gradually enter into a peak season after May, the delivery for rapeseed meal becomes quicker, boosting rapeseed meal market. But the monthly arrival of soybeans will likely be as high as 9.8 mln tonne from May to July, driven by positive crush margins of soybeans. Thus, soybean crush will rise to higher levels over the next two weeks, and soybean meal supply will gradually increase. In addition, the coronavirus pandemic has greatly impacted foodservices, thereby affecting demand for meats, curbing rapeseed meal price. Since the upward momentum of rapeseed meal is still limited in near stage, the overall market is likely to track futures to fluctuate at a narrow range. Buyers had better not chase up price too excessively.

 

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 CNY/tonne; Peruvian higher-quality SD with 65% protein content is 12,200-12,700 CNY/tonne; Peruvian higher-quality SD with 67% protein content is 13,200-13,300 CNY/tonne; and Peruvian Super Prime SD with 68% protein content is 14,000 CNY/tonne. Peru's Ministry of Health confirmed 20,914 cases of coronavirus with 572 deaths, and the Peruvian President Martin Vizcarra had announced to extend the state of emergency till May 10. Following this, Imarpe has also delayed to release investigation results on fish resources till April 28, casting doubts about a delay in starting fishing in the new season in north-centre oceans. It may also cause a supply shortage in fishmeal, so that traders are propping up prices, which is favorable to the market. 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 is predicted to keep steady in the short term. Stocks at port: Huangpu 53,000 tonnes, Fuzhou 25,000 tonnes, Shanghai 37,000 tonnes, Tianjin 1,000 tonnes, Dalian 11,000 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 1,700-1,720 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 1,720-1,750 USD/tonne. 

 

Cottonseed meal: Cottonseed meal prices are stable today but decline by 20 CNY/tonne in individual regions. The arrival of soybeans will likely reach an average of 9.8 mln tonnes from May to July, so the operation rate among crushing mills is about to return to higher levels. In this case, cottonseed meal will continue falling after easing the supply of soybean meal. Besides, the coronavirus pandemic is spreading globally, which hammers foodservices. As a result, the demand for meats is under great impact, causing a continuous drop in pig and broiler chicken price. Also, the demand in cottonseed meal market is weak. Thus, these are hitting market confidence. However, cottonseed price remains high due to little inventory, so the cost goes higher. Likewise, the operation rate continues falling this week, so the price among cottonseed meal factories is steady tentatively. It is predicted that the operation rate among soyoil crushing mills will be back to higher levels, which may raise the risk of paring back for cottonseed meal price. Buyers can wait and see.