Today (Jan 26), the market for meals in China is shown as follows:

Soybean meal: U.S. soybean futures rallied on Monday on bargain-hunting after Friday’s steep declines and on decent export data. Meal futures open high and rise on China’s Dalian Commodity Exchange today. Spot soybean meal prices follow to rise by 30-60 CNY at 3,530-3,840 CNY/tonne in tepid trade. (Tianjin 3840, Shandong 3710-3780, Jiangsu 3640-3790, Dongguan 3530-3630, and Guangxi 3600-3670.)

Soybean import cost remains at a high level at present. And soybean meal stocks have fallen to 480,000 tonnes due to quick deliveries ahead of the Spring Festival, albeit dismal trade in the last few days. Some mills have not spot soybean meal available now and have also sold February meal at a brisk pace, so they are actively raising prices today. But weekly soybean crush is at a very high level of 2.1 mln tonnes in recent two weeks, and investors also want to recoup funds toward the end of the lunar year, so Dalian meal futures have feeble upward impetus today. In the short term, soybean meal prices will have limited rises and will follow futures to fluctuate frequently.

Rapeseed meal: U.S. soybean futures staged sharp gains on Monday. Investors are active in buying oils and selling meals as oils futures maintain a strong trend. Zhengzhou rapeseed meal futures are range-bound today. Spot rapeseed meal is offered at 2,640-2,730 CNY/tonne in coastal China today, a fluctuation of 10 CNY/tonne, in tepid trade. Soybean crush will likely stay at an extremely high level of 2.05-2.10 mln tonnes over the next two weeks due to sufficient supply of soybeans. Besides, aquaculture has basically ceased, and poultry stocks are lower result from early substantial losses in breeding margins. In this case, feed consumption slows down, slackening demand for meals. Rapeseed meal inventories keep increasing, and thereby cracking down rapeseed meal prices. Plus, investors need liquidity back with the forthcoming Spring Festival. Thus, short-term rapeseed meal market is expected to continue fluctuating.

Imported fishmeal: Imported fishmeal prices keep firm today and can be traded through negotiation. Peruvian Standard SD with 65% protein content is 10,100-10,600 CNY/tonne; Peruvian higher-quality SD with 65% protein content is 10,500-11,100 CNY/tonne; Peruvian higher-quality SD with 67% protein content is 11,100-11,500 CNY/tonne; and Peruvian Super Prime SD with 68% protein content is 11,600-12,000 CNY/tonne. Fishmeal stocks will continue reducing at domestic ports before the Lunar New Year, and offers from foreign markets also keep firm, so traders have sentiment to support and hike prices. But the demand for fishmeal is subdued as aquaculture turns slack in winter, which is capping the upward space in domestic fishmeal market. In the short run, domestic fishmeal market is expected to steady with slight adjustments.

Stocks at ports: Dalian 2,600 tonnes, Tianjin 300 tonnes, Shanghai 5,700 tonnes, Huangpu 38,000 tonnes, Fuzhou 11,600 tonnes, Fangchenggang 1,030 tonnes and 2,700 tonnes at other ports.

FOB quotes from foreign markets today: Jan/Feb shipments are quoted higher by 30 USD at 1,410 USD/tonne for Peruvian Standard with 65% protein content and at 1,630 USD/tonne for Peruvian super with 68% protein content. Chilean Standard with 65% protein content is quoted steadily at 1,370 USD/tonne, and super with 68% protein content at 1,600 USD/tonne.

Fish catches in north-central Peru: As of Jan 20 (local time), fish catches in the second season of 2020 total 2,405,772 tonnes, taking up 86.54% of the total quota of 2.78 mln tonnes and with the fishing average at around 34,000 tonnes per day and 374,228 tonnes remaining available. (Imarpe revised its fish catches data for Nov 16th and 26th.)

Cottonseed meal: Cottonseed meal prices stay stable with a partial decrease of 50-100 CNY/tonne in China today. Soybean crush has maintained an extremely high level of 2.1 mln tonnes in recent two weeks as crushing mills make the operation rate super high. Besides, downstream buyers become cautious in stockpiling as they are in needs of recouping funds with the forthcoming Spring Festival. Moreover, aquaculture has basically ceased, and hog capacity recovery has slowed, seeing a subdued trade of cottonseed meal. This causes cottonseed meal price to decline. Nevertheless, U.S. soybean futures soared on Monday. And Dalian meal futures also continue the momentum after high opens today. Spot soybean meal increases by 30-60 CNY/tonne in coastal regions. Additionally, cottonseed cost remains high, which supports cottonseed meal price as well. It is projected that short-term cottonseed meal market will fluctuate at the high level.

(USD $1=CNY ¥6.48)