Today(on November 2nd), trends for Chinese animal and plant protein, oils & oilseeds and grains are shown as follows:
Plant protein:
Daily review on soybean meal: US soybeans overnight continued to pick up, correspondingly, soybean meal in DCE today rebounds mildly where domestic soybean meal spots remain stable with slight rebounds. Spots turnover is not much, but forward basis may attract some deals. Soybean meal prices in coastal areas range from 2,900 to 3,000 yuan/tonne, a steady rise of 10-20 yuan/tonne against yesterday(Tianjin prices 3,020 yuan/tonne, Shandong 2,940-2,980 yuan/tonne, Jiangsu 2,910-2,930 yuan/tonne, Dongguan 2930-2950 yuan/tonne, Guangxi 2,900-2,920 yuan/tonne, where USD $1=CNY 6.601). US soybean yield falls short of earlier expectations when harvest is approaching the end, additionally, market speculates that yield is probably to be lowered down again in USDA supply/demand report released in next week. Therefore, US soybeans for the moment are bolstered amid China's demands for the better. Though oil factories are now out of soybean meal spots, turnover registers large on low forward basis in these two days, hitting a record high over 8 years yesterday in spite of high offers provided by oil factories. Market concerns prevail that strict environmental inspections are going to conduct in North China from November 15th, such being the cases, soybean meal spots in a short term will rebound slightly with future. However, large soybeans are poised to arrive at ports later, to illustrate, about 8.73 Mln tonnes of soybeans will arrive in November with a rise of 12% against October, therefore, with good crush margins and recovered operating rate in next two weeks, the upside on soybean meal will be probably limited. From a short run, soybean meal will fluctuate in a tight range with futures. Once supply tensions are released, falling risks will come back. Buyers are encouraged to take a hand-to-mouth purchasing for spots and to buy in batches when any forward basis is lower than 50 yuan.
Daily review on imported rapeseed meal: today, prices for imported rapeseed meal keep stable, among which prices in coastal areas stand at 2,280-2,300 yuan/tonne(Guangxi offers 2,300 yuan/tonne; Guangdong 2,290 yuan/tonne; Fujian reports basis of 1801+100, where USD $1=CNY 6.601). Though stocks of rapeseed meal in coastal areas keep growing, gradually sufficient soybean meal in market with high operating rate and large soybean arrivals in the following two months may probably overwhelm the market for rapeseed meal. Rapeseed meal in a short term may continue to fluctuate in a tight range for poor demand unless it can be spurred by soybean meal.
Daily review on fishmeal: prices for imported fishmeal keep firm, yet prices are negotiable upon transaction and shipments at ports are general. Northern ports: fishmeal price for Peru ordinary SD with 65% protein content is 9,700-9,800 yuan/tonne; 10,600-10,700 yuan/tonne for Japanese SD with 67% protein content; 10,900-11,000 yuan/tonne for super steam fishmeal with 68% protein content. Southern ports: fishmeal price for Peru ordinary SD with 65% protein content is 9,600 yuan/tonne; 10,400 yuan/tonne for Japanese SD with 67% protein content; 10,700 yuan/tonne for super steam fishmeal with 68% protein content, where USD $1=CNY 6.601. Port stocks: Hangpu has 62,000 tonnes, Fuzhou 38,000 tonnes, Shanghai 45,000 tonnes, Tianjin 1,000 tonnes, Dalian 4,000 tonnes, Fangchenggang 1,000 tonnes, and other ports 4,000 tonnes. Spots offers in foreign trading(FOB) remain stable, in detail, the fishmeal offer for Peru ordinary SD with 65% protein content stays at USD $1,350 per tonne, USD $1,500 per tonne for super steam fishmeal with 68% protein content; the offer in Chile ordinary SD with 65% protein content is USD $1,350 per tonne, USD $1,460 per tonne for excellent fishmeal with 68% protein content, all of which are shipments in D/J. High offers in foreign trading ignite Chinese sellers to hold out for high prices. Overall, fishmeal market will remain stable with strong momentum for growth.
Oils & Oilseeds:
Daily review on soybeans: today, prices for most imported and distributed soybeans remain stable, which stays at 3,390-3,450 yuan/tonne at mains ports. US soybean yield falls short of earlier expectations when harvest is approaching the end, additionally, market speculates that yield is probably to be lowered down again in USDA supply/demand report released in next week. Given that, US soybeans for the moment are bolstered amid China's demands for the better. Imported and distributed soybeans today are supported by insufficient soybean surpluses at ports and strong sentiments of traders to hold out for high prices. As domestic soybeans keep growing in market amid large arrivals of imported soybeans later, traders now prefer to hold a wait-and-see attitude. Given that, imported soybeans may pare gains once stocks pressure are eased after the first 20 days of November.
Daily review on oils: US soybean yield falls short of earlier expectations when harvest is approaching the end, additionally, market speculates that yield estimates of US soybean are probably to be lowered down again in USDA monthly supply/demand report released in next week. Given that, beans in US trading overnight were buoyed, correspondingly, soybean oil in DCE today picks up where some domestic soybean oil spots price up though turnover is not much, yet low prices will attracts some deals. Robust China's demands bolster the trading but favorable rains in Brazil producing belt may in return limit the upside, overall, US soybeans will continue to fluctuate before breaking the restriction of 1,000 cents. According to latest statistics, about 8.73 Mln tonnes and 9.3 tonnes of soybeans are estimated to arrive at ports in November and December respectively, such being the cases, oils in a short term will fluctuate with futures in a tight range amid fair demands in November and oils glut. Buyers are encouraged to buy in case of deficient stockpiles, but more attention should be paid when chasing high prices.
Today's soybean oil: main prices for one-grade soybean oil in coastal areas stand at 6,100-6,200 yuan/tonne, falling 10-20 yuan/tonne in some areas (Tianjin traders offer 6,090-6,100 yuan/tonne, Rizhao traders 6,100 yuan/tonne, Zhangjiagang traders 6,180 yuan/tonne, Guangzhou traders 6,100 yuan/tonne, Fujian traders 6,180-6,200 yuan/tonne, where USD $ 1= CNY 6.601).
Today's palm oil: 24-degree palm oil prices in coastal areas are mostly stabilized between 5750 and 5,880 yuan/tonne(Tianjin traders offer 5,840-5,850 yuan/tonne; Rizhao traders are out of stocks; Zhangjiagang traders offer 5,880 yuan/tonne; Guangzhou 5,750-5,770 yuan/tonne; Xiamen 5,870 yuan/tonne, where USD $ 1= CNY 6.601).
Daily review on imported rapeseed oil: today, prices for imported rapeseed oil keep firm, among which prices for imported rapeseed oil in coastal areas are 6,710-6,890 yuan/tonne(November basis for Maple in Fangchenggang, Guangxi reaches 1,801-170; Yinxiang in Xiamen, Fujian stops to report; Shenheng in Guangdong 1801-150, where USD $1=CNY 6.601). As rapeseed oil prices rise in domestic market, imported rapeseed and rapeseed oil become lucrative amid active purchases of importers and soaring stockpiles of soybean and palm oils. Oils supply glut will limit the upside on rapeseed oil the time US new soybeans enter the market in large quantities, overall, rapeseed oil will pare gains with futures in a short run.
Grains:
Daily review on corn: today, domestic corn prices remain stable with weak momentum for growth. Main prices for corn acquisition in Shandong enterprises engaging in deep processing stay at 1,700-1,780 yuan/tonne, some falling 10-20 yuan/tonne over yesterday. Corn prices at Jinzhou port, Liaoning keep firm, where new corn of Liaoning and Inner Mongolia settles at 1,630-1,635 yuan/tonne, and Heilongjiang corn stands at 1,620-1,625 yuan/tonne, both remaining flat over yesterday. Drying new corn of Liaoning and Jilin with 14.5%-15% moisture at Bayuquan port prices at 1,610-1,620 yuan/tonne, while Heilongjiang corn prices at 1,600 yuan/tonne, both falling 10 yuan/tonne against yesterday. New corn prices at Shekou port, Guangdong stay at 1,810 yuan/tonne, remaining flat over yesterday. Seasonal supply pressure is enlarged as new-crop corn keeps the quickening pace of supplying in market on the back that most downstream enterprises are cautious about new corn procurement. In a short term, domestic corn may remain stable with weak performance for growth in terms of corn glut. Nevertheless, corn yield registers lower this year amid impressive expansion of production capacity in corn deep processing. Notably, it will be the first time in 2017 that demand dwarfs supply. With regained market confidence, the outlook of corn in the medium and long term becomes promising as farmers are reluctant to sell out and traders are inclined to stockpiling Attention should be paid on new corn supplying and related policies.
Daily review on sorghum and barley: today, prices for imported sorghum remain stable which settle at 1,780-2,200 yuan/tonne at main ports, remaining flat over yesterday(Tianjin offers 1,920-2,220 yuan/tonne; Nantong 1,880 yuan/tonne; Shanghai 1,880-1,890 yuan/tonne; Lianyungang in Jiangsu 1,700 yuan/tonne, Guangdong 1,780-1,790 yuan/tonne. Meantime prices for most imported barley keep stable which stay at 1,660-1,820 yuan/tonne at main ports, remaining flat over yesterday(Tianjin has not reported yet; Qingdao 1,820 yuan/tonne; Nantong 1,700-1,800 yuan/tonne; Shekou port in Guangdong 1,660-1,780 yuan/tonne, where USD $1= CNY 6.601). Sorghum market are buoyed by tight supply at Tianjin and Nantong ports and bullish fundamentals. Additionally, costs for barley and sorghum keep at a high level, which bolsters their performance in these days at ports amid strong sentiment of importers to hold out for high prices in case of unavailable supplies on lower costs. However, corn prices at northeastern and north-south ports have fallen across the board recently, and sorghum and barley, as corn's alternatives, are also affected. In addition, fragile demands for feed also affect grain market. Overall, sorghum and barley will remain stable with strong momentum for growth when long and short positions are mixed.
