Daily review on soybean meal: US soybeans prices continued to plunge last night, accordingly, soybean meal goes down tracking low open in Dalian Commodity Exchange(DCE). Domestic soybean meal spots are weighed down following futures, yet turnover are still light. Soybean meal prices in coastal areas range from 2,950 to 3,040 yuan/tonne, a drop of 10-40 yuan/tonne against yesterday(Tianjin prices 3,000 yuan/tonne, Shandong 2,950-3,000 yuan/tonne, Jiangsu 2,980-3,010 yuan/tonne, Dongguan 3,030-3,040 yuan/tonne, Guangxi 3,030-3,040 yuan/tonne). US soybeans and soybean meal(in Dalian Commodity Exchange) continue to be under pressure as rains are expected to come in Argentine soybean growing areas in the next ten days. Additionally, soybean meal stocks are increasingly accumulated the time soybean supplies are sufficient in market amid profitable crush margins and high operating rate in oil mills, where part of oil mills in Shandong are bloated in inventory, seeing that, soybean meal spots now pare gains tracking light turnover upon higher prices in these two days. However, weather speculation about La Nina lurks in the market, and on the whole, most oil mills fall short of spots with turnover mostly based on contracts, which limits the decline in soybean meal. Shorter term, soybean meal will continue to vibrate frequently in the wake of futures. Buyers may as well stand sidelines today.

    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 26,000 tonnes, Tianjin 1,000 tonnes, Dalian 5,000 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. Fishmeal in the outer remain stable on high prices amid plunging inventories and strong performance of domestic fishmeal closely tracking import market. Overall, fishmeal in a short term will primarily be 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 has been launched since December 6th in consideration of soybean flows, therefore, prices at most Shandong ports are unquoted. US soybeans and soybean meal(in Dalian Commodity Exchange) continue to be under pressure as rains are expected to come in Argentine soybean growing areas in the next ten days. 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. And market players are cautious about procurement pegged at higher prices, thus pushing pressure on imported and distributed soybean prices. Overall, imported and distributed soybeans in a shorter term will be hard to fall 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: US soybean and soybean meal continued to plummet last night for long positions were liquidated by follow-up active selling, while on the other hand, US soybean oil experienced a rebound thanks to market arbitrary of buying soybean oil and selling soybean meal. Accordingly, soybean oil in Dalian Commodity Exchange(DCE) today slows down the pace to fall though some spots continue to dip, while palm oil in DCE turn to pick up, yet turnover is not much. Soybean oil stocks are close to 1.7 Mln tonnes amid gradually increasing domestic palm oil in stocks when crush margins and soybean meal demands turn good on back of exceedingly high operating rate and large soybeans available at ports. In near terms, oil spots will be weak tracking futures in the context of oil glut, in that buyers who are short of stocks can wait for steady price tumbles and then consider the proper replenishment upon bargain buying.

    Today's soybean oil: main prices for GB grade one soybean oil in coastal areas stand at 5,730-5,850 yuan/tonne, falling 20-30 yuan/tonne in some areas (Tianjin traders offer 5,820-5,830 yuan/tonne, Rizhao traders 5,850 yuan/tonne, Zhangjiagang traders 5,850 yuan/tonne, Guangzhou traders 5,730-5,740 yuan/tonne, Fujian traders have not reported yet).

    Today's palm oil: 24-degree palm oil prices in coastal areas are mostly between 5,230-5,350 yuan/tonne, most of which increase by 10-30 yuan/tonne mostly(Tianjin traders offer 5,340-5,350 yuan/tonne, a rise of 20 yuan/tonne; Rizhao traders 5,320-5,330 yuan/tonne, remaining flat; Zhangjiagang traders offer 5,280 yuan/tonne, a rise of 30 yuan/tonne; Guangzhou 5,230-5,340 yuan/tonne, a rise of 10 yuan/tonne; Xiamen 5,250-5,260 yuan/tonne, a rise of 20 yuan/tonne).

    Daily review on imported rapeseed oil: today, prices for imported rapeseed oil drop steadily, among which prices in coastal areas are pegged at 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, besides, lower prices of soybean oil dwarf the market of rapeseed oil in market. Shorter term, rapeseed oil is limited to fall, and is likely to fluctuate in a tight range when peak stockpiling of small-packing oils is approaching.

    Daily review on corn: domestic corn prices today remain stable but with slight falls, where corn prices in northeastern producing belt, and at southern and northern ports pare gains. Main purchasing prices for corn in Shandong deep processors stay at 1,656-1,750 yuan/tonne though some are a tad lower, by contrast, purchasing prices in the northeast are revised to 1,500-1,620 yuan/tonne, some down 10-20 yuan/tonne over yesterday. New corn prices of Liaoning and Inner Mongolia at Jinzhou port are revised to 1,660-1,670 yuan/tonne, down 10-15 yuan/tonne over yesterday, and corn with moisture is pegged at 1,350 yuan/tonne. Drying new corn of Liaoning and Jilin with 14.5%-15% moisture at Bayuquan port prices at 1,655 yuan/tonne, down 15 yuan/tonne against yesterday. New corn prices at Shekou port, Guangdong are lowered to 1,830-1,840 yuan/tonne, a drop of 10 yuan/tonne over yesterday. Comparing plunging starch prices to the soaring corn prices, deep processors in northeastern areas begin to slow down the pace of corn procurement, among which some processors tend to lower acquisition prices in consideration of squeezed profits in processing, as a result, corn prices at northern and southern ports are seen falling. Indeed, though grain supply in the producing areas is now sufficient, supply pressure will be impressive once farmers are active in selling. On the other hand, deep processors in North China are more likely to take a hand-to-mouth purchasing for the moment, and most feed sectors in sales area maintain a safe inventory for they are cautious about bulk procurement as feed consumption has not yet gone better impressively due to low pig raising levels for the present, which limits the upside in prices. Shorter term, corn prices will continue to vibrate within a narrow range and be hard to fall or rise a lot, 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 pick up steadily which settle at 1,840-2,180 yuan/tonne at main ports(Tianjin offers 2,180 yuan/tonne; Nantong 1,910 yuan/tonne; Shanghai 1,890 yuan/tonne; Guangdong 1,840 yuan/tonne, up 20 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 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.