Daily review on soybean meal: US soybeans continued to plunge overnight, the same trend going to soybean meal today in DCE, where domestic soybean meal spots are weighed down with futures, yet turnover presents poor. Soybean meal prices in coastal areas range from 2,940 to 2,980 yuan/tonne, a drop of 10-30 yuan/tonne against yesterday(Tianjin prices 2,980 yuan/tonne, Shandong 2,930-2,970 yuan/tonne, Jiangsu 2,950-2,960 yuan/tonne, Dongguan 2,960-2,970 yuan/tonne, Guangxi 2,990-3,000 yuan/tonne). The US soybean-based biodiesel blending target of year 2019 is set at 2.1 billion gallons, which is equal to the figure of year 2018, while US soybeans continue to fall under pressure as favorable rainfall comes in Argentine crop belt. With good soybean crush margins and high operating rate in China, stocks in the downstream are quite a lot the time most turnover is based on implemented contracts, additionally, light turnover amid increasing stockpiles and enlarged fundamental pressure continue to weigh on soybean meal.  However, in the context of high probability of La Nina, capricious weather pattern in South America and good presale upon contracts for December-January delivery with little pressure on sales, soybean meal for the present is limited to fall. In light of large soybean arrivals later, soybean meal may be pressured down impressively upon increased stock pressure. Buyers for the moment can stand sidelines or take a hand-to-mouth purchasing.

    Daily review on imported rapeseed meal: today, prices for imported rapeseed meal are stable, among which prices in coastal areas stand at 2,260-2,370 yuan/tonne, falling 10-20 yuan/tonne over yesterday(Guangxi offers 2,260 yuan/tonne, down 20 yuan/tonne; Guangdong 2,290 yuan/tonne, down 10 yuan/tonne; Fujian 2,370 yuan/tonne, down 30 yuan/tonne). As weather turns colder and colder in south, demand for aquaculture shrank sharply amid fragile terminal demands for rapeseed meal. And rapeseed meal wanes slightly with futures though stocks in South China are significantly accumulated, yet with enlarged price gap between soybean meal and rapeseed meal, rapeseed meal is hard to fall a lot, but to pare gains in a small scale. Buyers can stand sidelines for the moment.

    Daily review on fishmeal: today, prices for imported fishmeal keep firm, yet prices are not likely to negotiate and shipments at ports are general. Northern ports: fishmeal price for ordinary SD with 65% protein content in Peru is 12,200-12,700 yuan/tonne; 12,900-13,400 yuan/tonne for Japanese SD with 67% protein content; 13,500-13,700 yuan/tonne for super steam fishmeal with 68% protein content. Southern ports: fishmeal price for ordinary SD with 65% protein content in Peru is 11,900-12,200 yuan/tonne; 12,700-13,000 yuan/tonne for Japanese SD with 67% protein content; 13,200-13,500 yuan/tonne for super steam fishmeal with 68% protein content. Fishing: till November 29th, about 6,026 tonnes of fish have been caught in northern Peru in B season over 17 years, accounting for 0.4% of the total volume; fishing quota for this season is 1.49 Mln tonnes, leaving 1,483, 974 tonnes unfinished. By contrast, about 9,384 tonnes have been caught in southern Peru, accounting for 1.82% of the total volume; fishing quota for this season is 515,000 tonnes, among which 50,5616 tonnes remain unfinished. Port stocks: Hangpu has 50,000 tonnes, Fuzhou 38,000 tonnes, Shanghai 30,000 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): the fishmeal offer in Peru ordinary SD with 65% protein content stays at USD $1,620 a tonne, USD $1,780 per tonne for super steam fishmeal with 68% protein content, both increasing by USD $50 a tonne over yesterday; 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 J/F. With buoyant performance of fishmeal in outer disc, holders in market have strong sentiments in price hike amid rising costs for holding on to fishmeal, overall, fishmeal in market is likely to go up.

    Daily review on soybeans: today, prices for imported and distributed soybeans stay at 3,400-3,480 yuan/tonne at mains ports, remaining flat over yesterday. US soybeans overnight continued to fall, resulting from favorable rainfall comes in Argentine crop belt and the unchanged target of soybean-based biodiesel blending in year 2019 compared with year 2018. In consideration of even more strict inspections at ports, sales of imported and distributed soybean are impeded the time domestic soybeans keep growing in market. For another thing, buyers in market tend to be more cautious about high procurement prices though soybeans will arrive in large quantities later. Generally, prices for imported and distributed soybeans today turn stable after the previous pick-up. Whereas, prices for imported and distributed soybean are still buoyed as stocks of imported soybeans at ports have not significantly piled up along with strict censorship of GMO certificates. Overall, imported and distributed soybeans in a shorter term will keep fluctuating, but later will be under considerable pressure if unloading goes smooth. 

Attention should be paid to port inspections and soybean arrivals.

    Daily review on oils: beans in CBOT overnight were weighed down, resulting from good weather pattern in South America and the unchanged target of soybean-based biodiesel blending in year 2019, nevertheless, oils in DCE today end high with a mild rebound in spite of low open, where some domestic soybean oil and palm oil spots are fluctuating. Lower prices may attract buyers to replenish inventories, yet turnover overall is not much. With good crush margins and exceedingly high operating rate on the back of large soybean arrivals, soybean oil has hit a record high of 1.70 Mln tonnes along with growing palm oil in stocks. And Malaysian palm oil yield estimates are on the increase albeit exports are lessened, under such circumstances, oil spots in a near term are not likely to jump, but to remain weak on the whole when troublesome supply pressure persists and bearish fundamentals come together. Yet, if oil futures in the afternoon rise significantly, buyers who fall short of inventories can take chances to make replenishment on a small scale, but in real terms, to maintain a light inventory is more recommended.

    Today's soybean oil: main prices for GB grade one soybean oil in coastal areas stand at 5,850-5,970 yuan/tonne, some fluctuating 10-20 yuan/tonne(Tianjin traders offer 5,920-5,930 yuan/tonne, Rizhao traders 5,930 yuan/tonne, Zhangjiagang traders 5,950 yuan/tonne, Guangzhou traders 5,850-5,860 yuan/tonne, Fujian traders 5,950-5,970 yuan/tonne).

    Today's palm oil: 24-degree palm oil prices in coastal areas are mostly between 5,340-5,440 yuan/tonne, some fluctuating 10-20 yuan/tonne(Tianjin traders offer 5,430-5,440 yuan/tonne, down 10 yuan/tonne; Rizhao traders are out of stocks; Zhangjiagang traders offer 5,380 yuan/tonne, keep flat over yesterday; Guangzhou 5,340 yuan/tonne with an increase of 20 yuan/tonne, Xiamen 5,330-5,350 yuan/tonne, up 10 yuan/tonne).

    Daily review on imported rapeseed oil: today, prices for imported rapeseed oil rise steadily, among which prices in coastal areas are 6,500-6,740 yuan/tonne, fluctuating 10-20 yuan/tonne over yesterday(Basis: Guangxi offers 1,805-190 for January-March delivery; Yinxiang in Xiamen, Fujian offers 1,805-300 for January delivery; Shenheng in Guangdong stops to report). Soybean oil has hit a new high to 1.68 Mln tonnes and palm oil has also raised above 500,000 tonnes in stocks amid overall oil glut and overwhelming soybean oil for rapeseed oil. Shorter term, a small rally may come about in oils after continuous falls, but the rebound will not be significant and after-market performance is probable to be dim.

    Daily review on corn: today, prices for domestic corn prices remain stable with slight fluctuations. Most purchasing prices for corn in Shandong deep-processing enterprises stay at 1,670-1,770 yuan/tonne, some dropping by 6-16 yuan/tonne compared with yesterday, by contrast, purchasing prices in the northeast are revised to 1,470-1,610 yuan/tonne where some enterprises in Jilin continue to increase by 20 yuan/tonne. New corn prices of Liaoning and Inner Mongolia at Jinzhou port are revised to 1,655-1,660 yuan/tonne, new corn of Heilongjiang prices at 1,650 yuan/tonne, and corn with 30% moisture is 1,330 yuan/tonne, all keeping flat over yesterday. Drying new corn of Liaoning and Jilin with 14.5%-15% moisture at Bayuquan port prices at 1,650 yuan/tonne, keeping flat against yesterday. New corn prices at Shekou port, Guangdong stay at 1,840-1,850 yuan/tonne, remaining flat over yesterday. Corn in northeastern belt remain strong amid stronger sentiments of farmers to hold on to goods. Deep-processing enterprises in surroundings are proactive in corn purchasing and stocks building to replenish low inventories, in addition, to attract more corn supplying, those enterprises continue to price up corn procurement where prices at coastal ports and corn selling areas are lifted. However, grain selling progress in northern China has shown a year-on-year decline as local enterprises have little willingness to make stockpiling, then corn prices today are seen depreciation and dumping pressure may come about before the coming of new year. Shorter term, corn will be strong in market with impressive performance in regions, therefore, attention should be paid to farmers’ selling progress and downstream demand changes.

    Daily review on sorghum and barley: today, prices for imported sorghum keep strong which settle at 1,800-2,180 yuan/tonne at main ports(Tianjin offers 2,180 yuan/tonne; Nantong 1,910 yuan/tonne; Shanghai 1,890 yuan/tonne; Guangdong 1,800-1,810 yuan/tonne. Meantime prices for most imported barley keep stable which stay at 1,660-1,880 yuan/tonne at main ports(Tianjin has not reported yet; Zhangjiagang 1,780 yuan/tonne, but 1,750 yuan/tonne upon transaction; Nantong 1,800 yuan/tonne; Shekou port in Guangdong 1,660-1,780 yuan/tonne). According to customs, imports of sorghum and barley in October wane. Additionally, grain supply at Tianjin and Nantong ports become tightened, where barley at Qingdao port and sorghum at Nantong port are basically sold out, and turnover is mostly based on implemented contract, hence bullish fundamentals bolster the market. Additionally, costs for barley and sorghum keep at a high level amid strong sentiment of importers to hold out for high prices in case of unavailable supplies on lower costs. Overall, grains will remain strong in a short term with upward tendency.