Today(on December 12th), trends for Chinese animal and plant protein, oils & oilseeds and grains are shown as follows:
Plant protein:
Daily review on soybean meal: US soybeans in CBOT ended low last night, while soybean meal in Dalian Commodity Exchange today shrink declines. Domestic soybean meal spots are steadily weighed down with futures today, and turnover is not much. Soybean meal prices in coastal areas range from 2,950 to 3,000 yuan/tonne, most decreasing by 10-20 yuan/tonne against yesterday (Tianjin prices 3,000 yuan/tonne, Shandong 2,950-2,980 yuan/tonne, Jiangsu 2,960-2,980 yuan/tonne, Dongguan 3,010-3,040 yuan/tonne, Guangxi 3,020-3,030 yuan/tonne). US soybeans continue to be weighed down as favorable rainfall are about to come in Argentina and probably bearish USDA reports may be released tonight according to market speculations. While soybean meal stocks have increased to 0.73 Mln tonnes week on week by 7% given healthy crush margins and high operating rate in oil mills in the wake of large soybean arrivals later, but notably, overwhelming stock pressure in Shandong and some brimming stock facilities in North China push soybean meal spots to decline further. However, that price tumble will not be great in the context that sales upon contract for December to January delivery are quite a lot when the year-end peak season for breeding industry is around the corner. Buyers can take a hand-to-mouth purchasing for the present.
Daily review on imported rapeseed meal: today, prices for imported rapeseed meal keep steady, among which prices in coastal areas stay at 2,260-2,340 yuan/tonne, keeping firm over yesterday (Guangxi offers 2,280 yuan/tonne, Guangdong 2,300 yuan/tonne, Fujian 2340 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 may continue to vibrate with futures. Buyers can take a hand-to-mouth purchasing for the present.
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. Fishing: till December 10th, 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 43,000 tonnes, Fuzhou 37,000 tonnes, Shanghai 24,000 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. Falling stocks at domestic ports ignite fish holders to hold out for high prices amid its strong performance in the outer. Overall, fishmeal market will remain stable with strong momentum for growth.
Oils & Oilseeds:
Daily review on soybean: prices for imported and distributed soybeans keep firm, among which Qingdao port offers 3,470-3,500 yuan/tonne for PNW soybeans, keeping flat over yesterday. US soybeans continue to be weighed down as favorable rainfall are about to come in Argentina and probably bearish USDA reports may be released tonight according to market speculations. Notably, soybean arrivals will be large later even though domestic new soybeans now keep supplying in market. Additionally, market players now prefer to stand sidelines, 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 and limited supplies available for trade at ports. Attention should be paid to port inspections and soybean arrivals.
Daily review on oils: in terms of probable rainfall in Argentina's dry crop zone and market concerns over a slowdown in US soybean exports, US soybeans continued to fall last night in the fourth trading day, meantime US soybean meal and oils ended low overnight. Whereas, oils in Dalian Commodity Exchange today rebound after sessions of falls where some domestic soybean oil and palm oil spots are a tad higher, along with increasing turnover on lower prices. In general, US soybeans are still under pressure in consideration of oil rebounds after sessions of decline but more rains in Argentina to ease concerns. The stock of soybean oil is still as high as 1.68 Mln tonnes and palm oil is increased to 540,000 tonnes given healthy crush margins and high operating rate in oil mills in the wake of large soybean arrivals later. However, oils glut will continue the time stockpile of packaging oil has not yet started, therefore oils are limited to rebound and are about to be weak overall. Buyers can take chances to make replenishment on a small scale upon bargain buying, and keep an eye on if chasing high.
Today's soybean oil: main prices for GB grade one soybean oil in coastal areas stand at 5,740-5,900 yuan/tonne, increasing by 20-30 yuan/tonne in most areas (Tianjin traders offer 5,820-5,830 yuan/tonne, Rizhao traders 5,870 yuan/tonne, Zhangjiagang traders 5,850 yuan/tonne, Guangzhou traders 5,740 yuan/tonne, Fuzhou in Fujian traders 5,870-5,900 yuan/tonne).
Today's palm oil: 24-degree palm oil prices in coastal areas are mostly between 5,240 and 5,350 yuan/tonne, part of which increase by 10-40 yuan/tonne (Tianjin traders offer 5,340-5,350 yuan/tonne, up 20 yuan/tonne; Rizhao traders 5,340 yuan/tonne, up 10 yuan/tonne; Zhangjiagang traders 5,250 yuan/tonne, keeping flat; Guangzhou 5,240-5,250 yuan/tonne with a rise of 40 yuan/tonne; Xiamen 5,250 yuan/tonne, keeping flat).
Daily review on imported rapeseed oil: today, prices for imported rapeseed oil go up, among which prices in coastal areas are 6,400-6,750 yuan/tonne, increasing by 30-50 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; Shenheng in Dongguan, Guangdong offers 1,801-240 for December delivery), yet turnover is not much. Rapeseed oil in market is buoyed by downsized stocks of rapeseed oil in South China and East China last week, while on the other hand, supply pressure is still considerable when soybean oil stocks are as high as 1.68 Mln tonnes and palm oil are climbed to 0.54 Mln tonnes with exceedingly high operating rate, given that, rebound for rapeseed oil is to be limited amid the estimated bearish USDA report tonight. On the whole, rapeseed oil will vibrate frequently with downward tendency till packing oil stockpiling in the run-up to holidays.
Grains:
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 processors stay at 1,656-1,760 yuan/tonne, keeping flat over yesterday, by contrast, purchasing prices in the northeast are revised to 1,470-1,610 yuan/tonne, most of which are stable, but some down 10 yuan/tonne over yesterday. Corn prices of Liaoning and Inner Mongolia at Jinzhou port are pegged at 1,680-1,690 yuan/tonne, keeping flat over yesterday, while corn prices at Bayuquan port rise slightly, among which drying new corn of Liaoning and Jilin with 14.5%-15% moisture are 1,670-1,675 yuan/tonne, up 5 yuan/tonne against yesterday. A wave of concentrated and peak sales of corn is likely to come in market before Spring Festival though supply pressure is still overwhelming. Yet deep processors are now cautious about corn procurement as processing margins are somewhat squeezed along with plunging starch prices. Meanwhile, most feed sectors in sale areas now maintain a safe inventory with a hand-to-mouth purchasing. Yet, the matter that corn yield this year fail to meet market demand is there to stay when high-quality corn are estimated to be tightened in supplies amid poorer quality in North China and farmers’ reluctance to sell out, thus corn in a shorter term is hard to fall a lot but to be volatile in a tight range. Attention should be paid to the supply/demand balance.
Daily review on sorghum and barley: today, prices for imported sorghum go steady 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, keeping flat against yesterday. 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). Costs of barley and sorghum keep high, and it’s said that Chinese buyers are proactive in sorghum purchasing, supporting its prices in the outer, especially, CNF prices in US keep high all the time in recent days. 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. Overall, grains will remain strong in a short term, where an upward tendency is seen at some ports.
(USD $1=CNY 6.618)
