Daily review on soybean meal: US soybeans prices were stalled and weighed down last night, the same trend going to soybean meal today in Dalin Commodity Exchange(DCE). Most domestic soybean meal spots go down with futures, and turnover turns to be few. Soybean meal prices in coastal areas range from 2,970 to 3,050 yuan/tonne, most falling 10-20 yuan/tonne against yesterday(Tianjin prices 3,050 yuan/tonne, Shandong 2,970-3,010 yuan/tonne, Jiangsu 3,000-3,010 yuan/tonne, Dongguan 3,040-3,060 yuan/tonne, Guangxi 3,030-3,050 yuan/tonne). A technical adjustment comes along seeing on-going price hikes of US soybeans. On the whole, supply tension of soybean meal is released on account of profitable crush margins and active operation in oil mills amid large soybean arrivals later at ports, yet some oil mills in Shandong are now bloated in inventories, which somewhat limits the upside of soybean meal. However, market concerns over soybean yield in South America prevail as the weather speculation about La Nina continues, thus supporting US soybeans to run above 1,000 cents. Additionally, in the year end, the traditionally golden time for pig raising, feed consumption in the pig fattening period will be gradually increased, which will help increase the demand for soybean meal. In near future, soybean meal is hard to fall impressively, but to track futures and vibrate with a strong momentum for growing. Nevertheless, market players should keep an eye on falling risks provided if supply pressure is enlarged in in mid-to-late December. Buyers for the present can stand sidelines. Buyers for the moment can stand sidelines.

    Daily review on imported rapeseed meal: today, prices for imported rapeseed meal are mixed, among which prices in coastal areas stand at 2,320-2,380 yuan/tonne with a fluctuation of 10-20 yuan/tonne over yesterday(Guangxi offers 2,340 yuan/tonne, up 10 yuan/tonne; Guangdong 2,320 yuan/tonne, down 20 yuan/tonne; Fujian 2,380 yuan/tonne). Albeit rapeseed meal are off-season, continuous rapeseed processing with high operating rate has led to a bloated inventory in some mills, such being the cases, oil mills are more cautious about price hikes for the sake of shipments. Yet, rapeseed meal prices are somewhat buoyed by expanded price gap between soybean meal and rapeseed meal and strong performance of US soybeans. Overall, rapeseed meal may fluctuate frequently tracking futures, and be hard to jump or tumble.

    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 12,800 yuan/tonne; 13,500 yuan/tonne for Japanese SD with 67% protein content; 13,800 yuan/tonne for super steam fishmeal with 68% protein content. Southern ports: fishmeal price for ordinary SD with 65% protein content in Peru is 12,500 yuan/tonne; 13,300 yuan/tonne for Japanese SD with 67% protein content; 13,800 yuan/tonne for super steam fishmeal with 68% protein content. Fishing: till December 5th, 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 47,000 tonnes, Fuzhou 37,000 tonnes, Shanghai 27,000 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 ordinary SD with 65% protein content in Peru stays at USD $1,620 per tonne, USD $1,780 per tonne for super steam fishmeal with 68% protein content; the offer in Chile ordinary SD with 65% protein content is USD $1,650 per tonne, USD $1,780 per tonne for excellent fishmeal with 68% protein content, all of which are shipments in J/F. Market insiders mostly stand sidelines now for a new-round survey on fish is carried out in Peru, overall, fishmeal market will remain stable with strong momentum for growth.

    Daily review on soybean: prices of imported and distributed soybeans are stopped to report today since a new-round strict inspection was launched yesterday in consideration of soybean flows, besides, a technical adjustment comes along seeing on-going price hikes of US soybeans. Notably, soybean arrivals will be large in the following months the time domestic new soybeans keep supplying in market, where about 9.07 Mln tonnes and 8.20 Mln tonnes of soybeans may arrive at ports in December and January(2018), respectively. In fact, US soybeans will remain strong in near term due to weather speculation though sales of imported soybeans are limited by market buyers’ caution about soybean procurement. Overall, imported and distributed soybeans in a shorter term will keep fluctuating for stocks at ports have not significantly piled up amid traders’ sentiments to hold out for prices. Attention should be paid to port inspections and soybean arrivals.

    Daily review on oils: since a technical dumping comes after US soybean prices hitting the four-month high, beans in CBOT last night were stalled and weighed down. Accordingly, oils in Dalian Commodity Exchange(DCE) continue to pare gains and are seen to fall impressively tracking US soybean falls. On one hand, soybean oil stocks remain a record high in light of good crush margins and exceedingly high operating rate, supported by large amounts of soybeans at ports, on the other hand, stockpiling of packing oils is projected to be delayed the time palm oil stocks in Malaysia are likely to be a two-year high and China’s stocks of palm oil are also seen increasing. Given that, oils will be under considerable pressure amid oversupply, and shorter term, oil spots will go weaker than what is expected. In this case, buyers can stand sidelines and wait for steady price tumbles to make a proper replenishment.

    Today's soybean oil: main prices for GB grade one soybean oil in coastal areas stand at 5,750-5,900 yuan/tonne, falling 40-70 yuan/tonne(Tianjin traders offer 5,840-5,850 yuan/tonne, Rizhao traders 5,880 yuan/tonne, Zhangjiagang traders 5,850 yuan/tonne, Guangzhou traders 5,750-5,770 yuan/tonne, Fujian traders have not quoted yet).

    Today's palm oil: 24-degree palm oil prices in coastal areas are mostly between 5,240 and 5,370 yuan/tonne, a decline of 50-60 yuan/tonne(Tianjin traders offer 5,340-5,350 yuan/tonne, a drop of 60 yuan/tonne; Rizhao traders 5,370 yuan/tonne, down 50 yuan/tonne; Zhangjiagang traders offer 5,250 yuan/tonne, a decline of 50 yuan/tonne; Guangzhou 5,240 yuan/tonne, down 50 yuan/tonne; Xiamen traders have not reported).

    Daily review on imported rapeseed oil: today, prices for imported rapeseed oil drop steadily, among which prices in coastal areas are 6,370-6,600 yuan/tonne, falling 50-70 yuan/tonne against yesterday(Basis: Guangxi offers 1,805-150 for January-March delivery; Yinxiang in Xiamen, Fujian offers 1,805-300 for January delivery; Chinatex in Shenheng, Guangdong offers 1,801-160 for December delivery), yet turnover is not much. With exceedingly high soybean processing, soybean oil has reached a record high of 1.68 Mln tonnes in stocks in spite of overwhelming supply pressure, and lower prices of soybean oil dwarf the market of rapeseed oil in market. Shorter term, rapeseed oil is limited to fall, and fluctuate in a tight range when peak stockpiling of small-packing oils is approaching.

    Daily review on corn: today, prices for most domestic corn remain stable, some fluctuating in a tight range. Main corn purchasing prices in Shandong deep-processing enterprises stay at 1,656-1,750 yuan/tonne and some are a tad lower, by contrast, purchasing prices in the northeast are revised to 1,500-1,650 yuan/tonne, most of which are stalled and turn stable, but some up 10-20 yuan/tonne over yesterday. Corn prices of Liaoning and Inner Mongolia at Jinzhou port are revised to 1,680-1,685 yuan/tonne, up 5 yuan/tonne over yesterday on the highest price, and corn with moisture is 1,350 yuan/tonne. Drying new corn of Liaoning and Jilin with 14.5%-15% moisture at Bayuquan port prices at 1,670-1,675 yuan/tonne, up 5 yuan/tonne against yesterday. New corn prices at Shekou port, Guangdong are 1,860 yuan/tonne, yet 1,840-1,850 yuan/tonne upon transaction, remaining flat over yesterday. Northeastern corn continues to price up as buyers there are proactive in procurement and most middlemen prefer to hoard goods the time some farmers are reluctant to sell out. And even though grain supply in the producing areas is still sufficient, precaution should be taken to any falling risks resulting from farmers’ active selling. On the other hand, feed consumption has not yet gone better impressively as pig raising remains low for the present, therefore most feed sectors in sales area maintain a safe inventory for they are cautious about bulk procurement, which limits the market. Shorter term, corn prices will continue to vibrate within a narrow range, in that attention should be paid to farmers’ selling progress and downstream demand changes. 

    Daily review on sorghum and barley: today, prices for imported sorghum go steady which settle at 1,820-2,180 yuan/tonne at main ports(Tianjin offers 2,180 yuan/tonne; Nantong 1,910 yuan/tonne; Shanghai 1,890 yuan/tonne; Guangdong 1,820 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 active attitude toward sorghum procurement among Chinese buyers. Overall, grains will remain strong in a short term.