Daily review on soybean meal: US soybean prices charted a fifth consecutive day of declines last night, the same trend going to Dallian soybean meal today. Domestic soybean meal spots are steadily weighed down with futures today, yet turnover is not much. Soybean meal prices in coastal areas range from 2,950 to 3,000 yuan/tonne, some falling 10-20 yuan/tonne against yesterday (Tianjin prices 3,000 yuan/tonne, Shandong 2,950-2,980 yuan/tonne, Jiangsu 2,950-2,980 yuan/tonne, Dongguan 3,020-3,030 yuan/tonne, Guangxi 3,020-3,030 yuan/tonne). US soybeans continue to be weighed down by beneficial rains in Argentina and the bearish USDA report. While soybean meal stocks pile up further given healthy crush margins and high operating rate in oil mills in the wake of large soybean arrivals later, but notably, growing stock pressure in  market weighs on soybean meal where some oil mills have brimming stock facilities in Shandong and North China and are forced to make a machine halt. However, 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 meal spots are not likely to fall greatly in the near term. Buyers can take a hand-to-mouth purchasing for the moment. 

    Daily review on imported rapeseed meal: today, prices for imported rapeseed meal are buoyant, among which prices in coastal areas are pegged at 2,340-2,400 yuan/tonne with a rise of 20-60 yuan/tonne over yesterday (Guangxi offers basis around RM 801-50 yuan/tonne; Guangdong 2,350 yuan/tonne, up 50 yuan/tonne ; Fujian 2,400 yuan/tonne, up 60 yuan/tonne). It is said that rapeseed meal futures in Zhengzhou Commodity Exchange (ZCE) continue to go higher as most aquatic-product manufacturers prefer short squeeze, as a result, demand for rapeseed meal is somehow seen rising with expanded price gap between soybean meal and rapeseed meal, thus supporting its prices. However, overwhelmingly higher stocks in South China this year than the figures a year earlier drag down the market when some are bloated in inventories. Meantime, soybean meal stocks continue to accumulate in terms of large soybeans available at ports and high soybean crush in mills. Shorter term, it’s not recommended to chasing high prices in case of any risks from the frequent and volatile sessions.

    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 42,000 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. As Peru projects to conduct another survey in the end of December, market players at home and abroad are now standing sidelines. Generally, fishmeal in a short term will remain stable with strong momentum for growth.

    Daily review on soybean: today, prices for most imported and distributed soybeans keep firm, which stays at 3,470-3,510 yuan/tonne at Shandong ports, basically flat over yesterday. US soybeans continue to be weighed down by beneficial rains in Argentina and the bearish USDA report. Additionally, market players now prefer to stand sidelines amid large soybean arrivals latter, 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 still be paid to port inspections and soybean arrivals.

    Daily review on oils: US soybeans overnight eased for a fifth straight session due to improved weather pattern in Argentina and higher yield estimates in Brazil, correspondingly, US soybean oils continued the decline of the previous trading day. While Dalian oils today edge lower where some domestic soybean oil and palm oil spots are weighed down with futures, yet turnover is not much. According to USDA report last night, final stocks of US soybeans were revised up to 0.445 billion bushels from 0.425 bushels the previous month as US soybean market share gave way to robust exports in South America, additionally, beneficial rains in Argentine soybean areas to come continue to weigh on US soybeans. Approximately, around 17.28 Mln tonnes of soybeans may arrive at China’s ports in December-January, in this case, soybean oil stocks keep a record high around 1.68 Mln tonnes and domestic palm oil are increased to 0.54 Mln tonnes in light of healthy crush margins and active operation, supported by ample soybean supplies though some mills have brimming inventory facilities. Given that, oils in market will remain weak under such sluggish fundamentals, and are hard to rebound by leaps, if possible, 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 5,700-5,880 yuan/tonne, falling 10-30 yuan/tonne in some areas (Tianjin traders offer 5,800-5,810 yuan/tonne, Rizhao traders 5,880 yuan/tonne, Zhangjiagang traders 5,850 yuan/tonne, Guangzhou traders 5,700-5,730 yuan/tonne, Fujian traders have not yet reported).

    Today's palm oil: 24-degree palm oil prices in coastal areas are mostly between 5,220 and 5,320 yuan/tonne, part of which decline 10-20 yuan/tonne (Tianjin traders offer 5,310-5,320 yuan/tonne, a drop of 20 yuan/tonne; Rizhao traders 5,320 yuan/tonne with a decline of 10 yuan/tonne; Zhangjiagang traders 5,250 yuan/tonne, keeping flat; Guangzhou 5,220 yuan/tonne; Xiamen has not yet reported).

    Daily review on imported rapeseed oil: today, prices for imported rapeseed oil drop steadily, among which prices in coastal areas are 6,380-6,730 yuan/tonne, falling 20-50 yuan/tonne against yesterday (Basis: Guangxi stops to report; Yinxiang in Xiamen, Fujian offers 1,805-300 for January delivery; Fuzhiyuan in Dongguan, Guangdong offers 6,650 yuan/tonne for GB grade one), yet turnover is not much. 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, rapeseed oils will remain weak in a frequent and volatile session till peak-season stockpiling of packing oils in the run-up to holidays amid the bearish USDA report.

    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 keep flat at 1,656-1,760 yuan/tonne, by contrast, purchasing prices in the northeast are revised to 1,470-1,610 yuan/tonne. 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 1,675 yuan/tonne, a tad higher against yesterday. New corn prices at Shekou port, Guangdong keep flat at 1,840-1,850 yuan/tonne. A wave of concentrated and peak sales of corn is likely to come in market before Spring Festival though supply pressure is still overwhelming. Deep processors have been more cautious about corn procurement, meanwhile, most feed sectors in sale areas now maintain a safe inventory with a hand-to-mouth purchasing, weighing on corn prices. Yet, the matter that corn yield this year fails to meet the demand is a market consensus when high-quality corn is estimated to be tightened in supplies later amid poorer quality in North China, farmers’ reluctance to sell out and traders' sentiments to hoard goods, thus corn in a shorter term will keep rangebound with mixed short and long positions. Attention should be paid to the corn 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, besides grain supply at Tianjin and Nantong ports become tightened, where barley at Qingdao port and sorghum in North China and East China are basically sold out, and turnover is mostly based on contract, given that, market is to be buoyed by such bullish fundamentals when supply is tightened before Spring Festival. Overall, grains will remain strong in a short term, where an upward tendency is seen at some ports.