Today (Jun 17), the market for meals in China is shown as follows:

Soybean meal: U.S. soybean futures edged lower Tuesday on good crop condition. Several employees from a restaurant in Fengtai District, Beijing, tested positive and were confirmed for the coronavirus cases. Beijing on Tuesday raised its COVID-19 emergency response to level II and also ordered elementary and secondary schools to close and halted cross-provincial group tours. Meal futures open low and fall on China’s Dalian Commodity Exchange today, as traders are worried that the escalation in the pandemic control could again blow the catering businesses. Spot soybean meal prices go down 10-20 CNY/tonne to settle at 2640-2740 CNY/tonne in coastal regions. (Tianjin 2740, Shandong 2670-2690, Jiangsu 2640-2660, Dongguan 2640-2660, and Guangxi 2640-2660.) Massive soybean imports between June and August in China push oil mills to vastly raise their soybean crush, so that soybean meal stocks also keep increasing and even swell in some mills. Add to that, soybean meal market is in tepid trading for days. However, market participants could easily shift their focus to weather conditions for U.S. soybean crops, which are right in growth period now. And tight supplies have also made premiums for Brazilian soybeans to keep firm, which lifts the cost of soybean imports. The DCE meal futures are in correction territory, so buyers can wait at the moment.

Imported rapeseed meal: US soybean futures edged down on Tuesday due to good crop condition. Beijing raised its COVID-19 emergency response level to II from III. Primary schools and high schools across Beijing were shut, and trans-provincial group tours were also halted. As a number of chefs, cooks and purchasing clerks in restaurants in Fengtai District were confirmed with the coronavirus, people were concerned about a second impact on demand in food services. In this case, rapeseed meal futures on Zhengzhou Commodity Exchange further decrease today, and rapeseed meal price in coastal regions settles down 10-20 CNY/tonne at 2,210-2,310, seeing light trading. Besides, it sees large arrival of soybeans from June to August, leading to over 2 mln tonnes of soybean crush. As soybean meal stocks in coastal regions rebound consecutively, some regions are overstocked. Likewise, due to continuous rainstorm in South area, the aquaculture is also under impact in some places. Besides, buyers are in wait-and-see mood amid concerns over resurgent coronavirus. Consequently, rapeseed meal is in light trading, curbing meals price. In addition, Canadian rapeseed imports are still restricted amid tensions between Ottawa and Beijing, so rapeseed supply becomes tightened. Also, tensions between U.S. and China have yet to ease. Therefore, rapeseed meal price will not drop too much and probably fluctuate at a narrow range in the near term. Buyers can make proper replenishment upon low and stable price.

Imported fishmeal: Imported fishmeal prices stay stable today and can be traded through negotiation. Peruvian Standard SD with 65% protein content is 11,500 CNY/tonne; Peruvian higher-quality SD with 65% protein content is 11,700-11,800 CNY/tonne; Peruvian higher-quality SD with 67% protein content is 12,600-12,800 CNY/tonne; and Peruvian Super Prime SD with 68% protein content is 13,500-13,700 CNY/tonne. The above offers from several enterprises are relatively low compared to others.

Stocks of fishmeal held in leading Chinese companies are not at a high level. Due to the severe influence of the COVID-19, Peru announced to temporarily close the docks from June 14, according to local media. Insiders are waiting now, so prices remain stable. However, recent rains have slowed down aquaculture activities in China. This affects the feed demand for fishmeal, and some feed plants are reluctant to make bulk purchases. Overall, domestic fishmeal market is predicted to stay stable with slight adjustments in the short run.

Stocks at port: Huangpu 56,000 tonnes, Fuzhou 18,000 tonnes, Shanghai 32,000 tonnes, Tianjin 1,000 tonnes, Dalian 8,000 tonnes, Fangchenggang 1,000 tonnes and 4,000 tonnes at other ports.

FOB quotes from foreign markets today: It is quoted steadily at 1,450 USD/tonne for Peruvian Standard with 65% protein content and at 1,680 USD/tonne for Peruvian super with 68% protein content. Chilean Standard with 65% protein content is quoted steadily at 1,490 USD/tonne, and super with 68% protein content at 1,720 USD/tonne.

Fish catches in Peru: As of June 15^th (local time), fish catches in the first season of 2020 total 1,168,384 tonnes, taking up 48.42% of the total quota of 2.413 mln tonnes and with the fishing average at around 34, 000 tonnes per day and 1,244,616 tonnes remaining available.

Cottonseed meal: Cottonseed meal prices keep steady and decline by 30 CNY/tonne in several regions today. Beijing raised its COVID-19 emergency response level to II from III. Primary schools and high schools across Beijing were shut, and trans-provincial group tour was also halted. A number of chefs, cooks and purchasing clerks in restaurants in Fengtai District were confirmed with the coronavirus. With an upgrade of epidemic prevention and control, the concerns about a fresh impact on catering services were triggered. As a result, meals on Dalian Commodity Exchange fall back after low opens today, and spot soybean meal down by 10-20 CNY/tonne. And the demand for cottonseed meal is restricted due to the low cost performance, curbing its price. However, cottonseed is pricey and the operation rate among crushing mills stays at low levels, so cottonseed meal supply is tight. Driven by high cost and limit supply, cottonseed meal price will be resilient tentatively and likely fluctuate at a narrow range in a short term.

(USD $1=CNY ¥7.09)