Daily review on soybean meal: US soybeans continued to plunge last Friday, the same trend going to soybean meal today in DCE, where most domestic soybean meal spots are weighed down with futures, yet turnover presents poor. Soybean meal prices in coastal areas range from 2,960 to 3,020 yuan/tonne, most falling 10-30 yuan/tonne against last Friday(Tianjin prices 3,020 yuan/tonne, Shandong 2,960-3,000 yuan/tonne, Jiangsu 2,970-2,980 yuan/tonne, Dongguan 3,040-3,070 yuan/tonne, Guangxi 3,000-3,020 yuan/tonne). Argentina will see a much-needed rainfall in the coming weeks the moment monthly report of supply and demand is to be released by USDA. Generally, market speculates that US soybean final stocks and Brazilian soybean yield estimates are likely to be revised upward, and with such bearish expectations, US soybeans are weighed down. Soybean crush were accumulated to 1.97 Mln tonnes last week with profitable crush margins and high operating rate in oil mills, backed by large soybean arrivals. And to a large extent, soybean crush in the following two weeks will climb over 1.97 Mln tonnes tracking gradually growing soybean meal stocks, though some oil mills in Shandong are bloated in inventories, in this case, soybean meal in a short term will pare gains in a volatile session with futures.  However, possible Argentina's drought speculations to come resulting from La Nina and robust US soybean export demand limit US soybean to fall the time presale upon contracts for December-January delivery are quite good for year end is the peak time for pig raising with increasing feed consumption in pig fattening period, seeing that, soybean spots are not likely to fall greatly, but to pare gains with futures in a near future. Buyers can stand by for the moment and keep an eye on USDA report for guidance.

    Daily review on imported rapeseed meal: today, prices for imported rapeseed meal decline steadily, among which prices in coastal areas stand at 2,260-2,340 yuan/tonne with a drop of 10-40 yuan/tonne over last Friday(Guangxi offers 2,280 yuan/tonne, down 40 yuan/tonne; Guangdong 2,300 yuan/tonne; Fujian 2,340 yuan/tonne, down 10 yuan/tonne). Rapeseed meal stocks this year in South China are seen to be much higher than the figure in previous years, among which some oil mills are bloated in inventories, being unfavorable for rapeseed meal in market. Nevertheless, expanded price gap between soybean meal and rapeseed meal and likely speculations on Argentine drought now are giving supports to rapeseed meal prices and limiting the decline in prices. Overall, rapeseed meal is likely to vibrate with futures.

    Daily review on fishmeal: today, prices for imported fishmeal keep firm, yet prices are negotiable upon transaction 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. Port stocks: Hangpu has 46,000 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. Shorter term, market insiders are waiting for Peruvian new-round investigation and later fishing progress, therefore price fluctuations are confined.

    Daily review on soybean: quotes about imported and distributed soybeans resumed today, where some PNW soybeans are pegged at 3,500 yuan/tonne at Qingdao ports. Argentina will see a much-needed rainfall in the coming weeks the moment monthly report of supply and demand is to be released by USDA. Generally, market speculates that US soybean final stocks and Brazilian soybean yield estimates are likely to be revised upward, and with such bearish expectations, US soybeans are weighed down. Notably, soybean arrivals will be large later even though domestic new soybeans now keep supplying in market. Additionally, 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 experience a volatile session with upward tendency for stocks at ports have not significantly piled up amid strict port inspections. Attention should be paid to port inspections and soybean arrivals.

    Daily review on oils: soybeans and soybean meal in CBOT continued to drop last Friday night due to estimated US exports curtailment caused by bumper harvest of crops in South America, while on the other hand, US soybean oil were bolstered to rebound by active arbitrary of buying soybean oil and selling soybean meal. On the whole, oils in Dalian Commodity Exchange(DCE) today experience a volatile session where some domestic soybean oil spots run a tad lower and palm oil spots fluctuate in a tight range, still, turnover is not much. Yet, blessing rainfall in Argentina in the next two weeks to come pushes US soybeans below 990 cents. Soybean oil stocks are close to 1.7 Mln tonnes and domestic palm oil are increased to 0.51 Mln tonnes in light of healthy crush margins and high operating rate, supported by large soybean arrivals where around 9.07 Mln tonnes of soybeans are estimated to arrive in December. Therefore, oils in market are limited to rebound under such weak fundamentals, and are about to run lower with poor momentum to grow unless an intensive stockpiling is carried out in the run-up to holidays.  Buyers can take a hand-to-mouth purchasing for the present.

    Today's soybean oil: main prices for GB grade one soybean oil in coastal areas stand at 5,720-5,850 yuan/tonne, falling 10-20 yuan/tonne in some areas(Tianjin traders offer 5,800-5,810 yuan/tonne, Rizhao traders 5,850 yuan/tonne, Zhangjiagang traders 5,800 yuan/tonne, Guangzhou traders 5,720 yuan/tonne, Fujian traders 5,850 yuan/tonne).

    Today's palm oil: 24-degree palm oil prices in coastal areas are mostly between 5,230 and 5,350 yuan/tonne, a fluctuation of 10-30 yuan/tonne(Tianjin traders offer 5,330-5,340 yuan/tonne, a drop of 10 yuan/tonne; Rizhao traders 5,330 yuan/tonne, a rise of 10 yuan/tonne; Zhangjiagang traders 5,250 yuan/tonne, a decline of 30 yuan/tonne; Guangzhou 5,230 yuan/tonne; Xiamen 5,250 yuan/tonne, keeping flat).

    Daily review on imported rapeseed oil: today, prices for imported rapeseed oil go steady, among which prices in coastal areas are 6,380-6,640 yuan/tonne, keeping firm compared with last Friday(Basis: Guangxi offers 1,805-150 for January-March delivery; Yinxiang in Xiamen, Fujian offers 1,805-300 for January delivery;  Shenheng in Dongguan, Guangdong offers 1,801-240 for December delivery), yet turnover is not much. Rapeseed oil stocks in South China last week have decreased to 78,000 tonnes week on week by 14%, meantime, stocks in East China have downsized to 0.26 Mln tonnes by 1%, being favorable for rapeseed oil in market. However, with exceedingly high soybean processing, soybean oil has reached a record high of 1.68 Mln tonnes in stocks and palm oil is increased to 0.50 Mln tonnes in stocks amid overwhelming supply pressure, in addition, sluggish performance of soybean oil drags down the rapeseed oil in market. Shorter term, rapeseed oil is limited to fall, and is likely to fluctuate in a tight range with weak momentum for growth when peak stockpiling of small-packing oils is approaching.

    Daily review on corn: today, domestic corn prices remain stable with upward tendency. Most purchasing prices for corn in Shandong deep processors stay at 1,656-1,760 yuan/tonne, some rising 10 yuan/tonne after a session of falls, by contrast, purchasing prices in the northeast stay at 1,470-1,610 yuan/tonne, some down 10-20 yuan/tonne over last Friday. Corn prices of Liaoning and Inner Mongolia at Jinzhou port are revised to 1,680-1,690 yuan/tonne, up 20 yuan/tonne over last Friday. Corn prices at at Bayuquan port rebound again, among which drying new corn of Liaoning and Jilin with 14.5%-15% moisture prices at 1,600-1,670 yuan/tonne, with a slight increase of 5-10 yuan/tonne compared with last Friday. New corn prices at Shekou port, Guangdong are pegged at 1,860 yuan/tonne, a rise of 10 yuan/tonne over last Friday, yet prices upon transaction may settle at 1,840-1,850 yuan/tonne. Deep processors in northeast continue to lower down corn procurement prices by 10-20 yuan/tonne, and slow down the pace of procurement for the near term as processing margins are somewhat squeezed. Meanwhile, a wave of concentrated and peak sales of corn in supply market is likely to come before holidays though most feed sectors in sale areas now are cautious about corn procurement without any large inventories building. For one thing, prices of some corn in Shandong areas and at southern and northern ports rise slightly after a session of falls followed by farmers’ reluctant sentiments to sell out, for another thing, high-quality corn in northeastern belt are rushed to harvest against poorer quality in North China amid traders’ sentiment to hoard good, given that, corn in a shorter term is hard to fall but to be volatile in a tight range. Attention should be paid to supply/demand balance to seize the golden time for corn selling and ward off any risks if chasing high.  

    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 1,840-1,850 yuan/tonne with a slight increase. 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 1,730-1,750 yuan/tonne; 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.