Today(on November 21st), trends for Chinese animal and plant protein, oils & oilseeds and grains are shown as follows:

Plant protein:

    Daily review on soybean meal: US soybeans prices were a tad lower last night, correspondingly, soybean meal in the morning slow down the rising pace in DCE where domestic soybean meal spots stop to go up and remain stable. Yet, turnover presents poor and forward basis may attract some deals. Soybean meal prices in coastal areas range from 2,990 to 3,050 yuan/tonne, some rising 10-20 yuan/tonne against yesterday(Tianjin prices 3,050 yuan/tonne, Shandong 3,010-3,030 yuan/tonne, Jiangsu 2,990-3,000 yuan/tonne, Dongguan 3,030-3,040 yuan/tonne, Guangxi 3,040-3,050 yuan/tonne). US soybean futures plunged as India raised import tariffs for vegetable oil amid falling prices of crude oil, which also dragged down US soybeans. Besides, soybean meal may be limited to rise when its stocks are regained to 627,000 tonnes week on week by 7% with good crush margins and lifted operation rate. However, most oil mills now fall short of spots, with strict censorship of GMO certificates, delayed soybean unloading in December to come and environmental protections to weigh down operation in North China and northeast among which capacity production in quite a lot oil mills in Tianjin is confined to 30%, shorter term, soybean meal will remain stable. Notably, market insiders should pay attention on the market trend in medium and longer term in consider of larger imported soybeans at ports later. Practically, buyers for the moment can take a bargain hunting to maintain inventories, but to chase high offers is not recommended.

Daily review on imported rapeseed meal: today, prices for imported rapeseed meal pick up steadily, among which prices in coastal areas stand at 2,340-2,400 yuan/tonne, rising 10-30 yuan/tonne against yesterday(Guangxi offers 2,350 yuan/tonne with an increase of 30 yuan/tonne; Guangdong 2,340 yuan/tonne with a rise of 10 yuan/tonne; Fujian 2,380 yuan/tonne, down 10 yuan/tonne). US soybeans remain strong in market due to concerns over strict censorship of GMO certificates, strong performance of La Nina to bring about hot and dry weather in Argentina, and production halt or limitation by environmental protection in North China and northeast, given that, rapeseed meal continues to rebound the time feed sectors prefer rapeseed meal to soybean meal in consideration of enlarged price gap between them. Nevertheless, the upside of rapeseed meal is somewhat limited when aquaculture is still off-season, additionally, stocks of rapeseed meal keep growing with lifted operation rate in coastal oil mills, where some in Guangxi are brimming in inventories.

Daily review on fishmeal: today, prices for imported fishmeal rise steadily, yet prices are negotiable upon transaction and shipments at ports are general. Northern ports: fishmeal price for Peru ordinary SD with 65% protein content are 11,200-11,600 yuan/tonne with an increase of 600-800 yuan/tonne against yesterday, 11,900-12,300 yuan/tonne for Japanese SD with 67% protein content with a rise of 600-800 yuan/tonne, 12,500-12,600 yuan/tonne for super steam fishmeal with 68% protein content. Southern ports: fishmeal price for Peru ordinary SD with 65% protein content are 11,100 yuan/tonne, and 11,900 yuan/tonne for Japanese SD with 67% protein content, both rising 600 yuan/tonne over yesterday; 12,200 yuan/tonne for super steam fishmeal with 68% protein content. Port stocks: Hangpu has 58,000 tonnes, Fuzhou 38,000 tonnes, Shanghai 35,000 tonnes, Tianjin 1,000 tonnes, Dalian 6,000 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 $1,370 per tonne, USD $1,520 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. Holders are supported to raise fishmeal prices in light of lower quota for next-season fishing and delayed time to start catching in Peru. Overall, fishmeal may further pick up in market.

Oils & Oilseeds:

Daily review on soybeans: affected by a strict investigation for GM-soybeans flows, ports of Shangdong lay an embargo on all ships, consequently, prices of imported soybeans are stopped to report in Qingdao and Rizhao ports. Additionally, dry Weather in South America supports US soybeans. However, estimated more than 26 Mln tonnes of soybeans will arrive at ports from November to January though domestic new soybeans now keep supplying in market, given that, imported and distributed soybeans will be pressured down later if soybean unloading goes smooth. Besides, uncertainties in market are quite a lot, therefore attention should be paid on later soybean arrivals and domestic soybean supplying in market.

Daily review on oils: despite the dry weather in South America supporting US soybean prices, with fragile export requirements in Malaysia and lifted import duties on edible oil in India, US soybean oil plunged sharply last night amid falling crude oil prices and active arbitrary of buying meal and selling oil. Correspondingly, oils in DCE today continue to pare gains with slight falls where domestic soybean oil spots are mixed in prices and palm oil spots are a tad lower. Generally, turnover is not much, lower prices in some oil mills may attract some procurement. It’s said that India has raised the import duties of palm oil by 15 percentage points despite poor export demands, greatly knocking down the palm oil market in Malaysian trading, in addition, estimated more than 26 Mln tonnes of soybeans may arrive at ports from November to January on the back of good crush margins and active operation in the following two weeks. As a result, stocks of soybean oil reach a historical high of 1.63 Mln tonnes the time palm oil is rebuilding its inventories and reaching 0.5 Mln tonnes in stocks, and sluggish fundamentals continue to weigh down oil spots. Yet, oil are restrained to fall to some degree in consideration of production halt or limitation in North China and northeast, strict censorship of GMO certificates and uncertainties of soybean unloading in December. Buyers can wait and replenish the inventories upon bargain hunting when prices turn stable and have the tendency to pick up.

Today's soybean oil: main prices for GB grade one soybean oil in coastal areas stand at 5,900-6,020 yuan/tonne, some fluctuating 10-20 yuan/tonne(Tianjin traders offer 5,960-5,970 yuan/tonne, Rizhao traders 5,980 yuan/tonne, Zhangjiagang traders 5,950 yuan/tonne, Guangzhou traders 5,900 yuan/tonne, Fujian traders 6,020 yuan/tonne).

Today's palm oil: 24-degree palm oil prices in coastal areas are mostly between 5,440 and 5,590 yuan/tonne, some declining 10-20 yuan/tonne(Tianjin traders offer 5,580-5,590 yuan/tonne, a drop of 10 yuan/tonne; Rizhao traders are out of stock; Zhangjiagang traders offer 5,550 yuan/tonne, keeping flat over yesterday; Guangzhou 5,440-5,460 yuan/tonne, falling 20 yuan/tonne, Xiamen 5,480-5,500 yuan/tonne).

Daily review on imported rapeseed oil: today, prices for imported rapeseed oil keep steady, among which prices in coastal areas are 6,540-6,750 yuan/tonne(basis for Maple in Fangchenggang, Guangxi reaches 1,801-120; Yinxiang in Xiamen, Fujian stops to report; Shenheng in Guangdong offers 1805-320 for basis in December). Stocks of rapeseed oil in South China and East Chinalast week were both downsized, bolstering rapeseed oil in market.  By contrast, stocks of soybean oil hit a historical high to 1.62 Mln tonnes amid overall oil glut and overwhelming soybean oils for rapeseed oil, shorter term, rapeseed oil in market will fluctuate with futures frequently and have poor impetus to rebound. Yet, strengthened import inspections on GM-soybeans and winter’s haze-treatment plans under the way may affect operation in oil mills, thus limiting oils to fall.

Grains:

Daily review on corn: today, prices for most domestic corn remain stable, some fluctuating in a tight range. Main prices for corn acquisition in Shandong deep-processing enterprises stay at 1,690-1,780 yuan/tonne. Corn prices at Jinzhou port, Liaoning are steadily, where most corn stands at 1,620-1,625 yuan/tonne, keeping flat over yesterday, and corn with 30% moisture settles at 1,310 yuan/tonne, keeping flat. Additionally, corn prices at Bayuquan port are stable, among which drying new corn of Liaoning and Jilin with 14.5%-15% moisture prices at 1,610 yuan/tonne, and 1,590-1,600 yuan/tonne for Heilongjiang corn, keeping flat. New corn prices at Shekou port, Guangdong stay at 1,850 yuan/tonne, keeping flat, yet prices are negotiable and can be settled at 1,840 yuan/tonne. Corn prices in producing belt remain strong in these days in light of farmers’ reluctance to sell out. Yet, cold weather is good for corn storage and threshing on the occasion that the first round of small-scale corn selling may be approaching, nevertheless, downstream enterprises have not yet started bulk procurement and inventories building, then the upside of corn may be somewhat restrained. Overall, domestic corn is estimated to fluctuate in a tight range in a short term, and attention should be paid on corn supplying in producing belt, downstream demands for corn and relative policies and weather patterns.

Daily review on sorghum and barley: today, prices for imported sorghum are stable which settle at 1,780-2,250 yuan/tonne at main ports(Tianjin offers 1,980-2,250 yuan/tonne; Shanghai 1,880 yuan/tonne; Guangdong 1,780-1,790 yuan/tonne). Meantime prices for most imported barley keep stable which stay at 1,660-1,840 yuan/tonne at main ports(Tianjin has not reported yet; Qingdao 1,850 yuan/tonne; Lianyungang 1,700 yuan/tonne; Zhangjiagang 1,780-1,790 yuan/tonne; Nantong 1,700-1,800 yuan/tonne; Shekou port in Guangdong 1,660-1,780 yuan/tonne). Sorghum prices continue to rise in terms of tight supply at Tianjin and Nantong ports amid bullish fundamentals to boost the market. Additionally, costs for barley and sorghum keep at a high level due to strong sentiment of importers to hold out for high prices in case of unavailable supplies on lower costs. However, poor demand for feed will also affect grain requirements, limiting the rally of spots amid mixed long and short positions. Shorter term, spots will remain strong in market.

(USD $1=CNY 6.6326)