Daily review on soybean meal: US soybeans overnight continued to drop slightly, the same trend going to Dalian soybean meal today, among which domestic soybean meal spots remain stable but with slight falls, 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 (Tianjin prices 2,990 yuan/tonne, Shandong 2,920-2,960 yuan/tonne, Jiangsu 2,950-2,970 yuan/tonne, Dongguan 2,990-3,000 yuan/tonne, Guangxi 2,980-3,000 yuan/tonne). To illustrate, US soybeans are weighed down as improved weather pattern in South America shows bright outlook for crop yield. Moreover, more and more oil mills are now bloated in inventories and are forced to make a machine halt on the back of healthy margin crush and high operating rate, while on the other hand, market players are seen to be cautious about buying, given that, soybean meal stocks continue to pile up in spite of gradually expanded supply pressure. 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, in this case, soybean meal is limited to fall surprisingly. Overall, soybean meal in near term will edge lower in a slow pace tracking future, therefore buyers can take a hand-to-mouth purchasing for the moment. 

    Daily review on imported rapeseed meal: today, prices for imported rapeseed meal decline steadily, among which prices in coastal areas stand at 2,280-2,370 yuan/tonne with a drop of 10 yuan/tonne in some areas (Guangxi offers basis at RM805+0 yuan/tonne; Guangdong offers 2,310 yuan/tonne, falling 10 yuan/tonne; Fujian stops to report). However, rapeseed meal stocks in South China this year are overwhelmingly higher than the figures a year earlier when some mills are bloated in inventories and aquaculture is off-season. Meantime, soybean meal stocks continue to accumulate in terms of large soybeans available at ports and high soybean crush in mills, which puts strains on rapeseed meal, nevertheless, expanded price gap between soybean meal and rapeseed meal, probably growing demand ahead of Spring Festival and robust rapeseed meal future contracts in near months by long speculation may somehow put supports to rapeseed meal spot prices. Shorter term, rapeseed meal will vibrate with futures frequently, thus buyers had better not chase high.

    Daily review on fishmeal: today, prices for imported fishmeal pick up steadily, yet prices are negotiable upon transaction and shipments at ports are general. Northern ports: fishmeal prices for Peru ordinary SD with 65% protein content are 12,800-12,900 yuan/tonne; 13,500-13,600 yuan/tonne for Japanese SD with 67% protein content; 13,800-13,900 yuan/tonne for super steam fishmeal with 68% protein content, all increasing by 0-100 yuan/tonne over last week. 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 39,000 tonnes, Fuzhou 36,000 tonnes, Shanghai 22,000 tonnes, Tianjin 1,000 tonnes, Dalian 5,000 tonnes, Fangchenggang 1,000 tonnes, and other ports 4,000 tonnes. Spots offers (FOB) in the outer remain stable for J/F delivery, in detail, the fishmeal offer for ordinary SD with 65% protein content in Peru stays at USD $1,720 per tonne, USD $1,880 per tonne for super steam fishmeal with 68% protein content; the offer in Chile ordinary SD with 65% protein content is USD $1,750 per tonne, USD $1,880 per tonne for excellent fishmeal with 68% protein content. Market insiders now prefer to stand sidelines and wait for end-December surveys in Peru, therefore, fishmeal in a short term will remain stable with upward tendency or pick up slightly. 

    Daily review on soybeans: today, prices for imported and distributed soybeans edge down steadily, which stays at 3,460-3,480 yuan/tonne at mains ports, some falling 20 yuan/tonne. To illustrate, US soybeans are weighed down as improved weather pattern in South America shows bright outlook for crop yield. Additionally, market players now prefer to stand sidelines amid large soybean arrivals latter, thus pushing pressure on imported and distributed soybean prices today.

Yet, imported and distributed soybeans in a shorter term will experience a volatile session and be hard to fall amid strict inspections at ports, limited supplies available for trade in market and traders’ sentiments for higher offers. Attention should be paid to port inspections and soybean arrivals.

    Daily review on oils: beans last Friday night on Chicago Board of Trade all edged lower, caused by ample supply after bumper harvest in US and eased weather concerns in South America, but by striking contrast, Dalian oils today are seen to rebound after sessions of falls where some domestic soybean oil spot prices fluctuate in a tight range and palm oil picks up slightly, indeed, turnover upon lower prices is expected to go up. Owing to good crush margins and high operating rate backed by large soybean arrivals, soybean oils remain a record high in stocks and domestic palm oils are also on the increase in a slow pace. Nevertheless, oils glut is seen going on as the peak time for stockpiling is delayed by market downturn, in this case, shorter term, oil spots will stay weak till mass stockpiling for packing oils in the run-up to holidays is launched and any rebound in the period, if possible, will not be significant, therefore, buyers might as well maintain a light inventory.

    Today's soybean oil: main prices for GB grade one soybean oil in coastal areas stand at 5,650-5,790 yuan/tonne, some fluctuating 10 yuan/tonne (Tianjin traders offer 5,740-5,750 yuan/tonne, Rizhao traders 5,800 yuan/tonne, Zhangjiagang traders 5,770 yuan/tonne, Guangzhou traders 5650-5,670 yuan/tonne, Fujian traders 5,780-5,790 yuan/tonne).

    Today's palm oil: 24-degree palm oil prices in coastal areas are mostly between 5,180-5,270 yuan/tonne, a rise of 20-30 yuan/tonne (Tianjin traders offer 5,260-5,270 yuan/tonne, a rise of 20 yuan/tonne; Rizhao traders 5,260-5,270 yuan/tonne, a rise of 30 yuan/tonne; Zhangjiagang traders offer 5,220 yuan/tonne, a rise of 20 yuan/tonne; Guangzhou 5,180 yuan/tonne, a rise of 30 yuan/tonne; Xiamen 5,800 yuan/tonne).

    Daily review on imported rapeseed oil: today, prices for imported rapeseed oil rise steadily, among which prices in coastal areas are 6,340-6,600 yuan/tonne, increasing by 20-50 yuan/tonne (Basis: Maple in Fangchenggang, Guangxi offers 1805-150; Yinxiang in Xiamen, Fujian offers 1,805-300 for January delivery; Fuzhiyuan in Dongguan, Guangdong offers 6,600 yuan/tonne for GB grade one rapeseed oils), yet turnover is not much. Last week, rapeseed oil stocks in South China fell to 74,000 tonnes week on week by 5.2%, while stocks in East China decreased to 250,000 tonnes by 4%, being favorable for rapeseed oils in market. Whereas, supply pressure of oils is still considerable and hard to ease 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, meantime US soybeans are under pressure due to improved weather pattern in South America, given that, rapeseed oils will remain weak in a volatile session till peak-season stockpiling of packing oils in the run-up to holidays.

    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 4-10 yuan/tonne over last week, by contrast, purchasing prices in the northeast stay at 1,490-1,650 yuan/tonne, some up 20-70 yuan/tonne over last Friday. Corn prices of Liaoning and Inner Mongolia at Jinzhou port are revised to 1,690-1,695 yuan/tonne, up 5 yuan/tonne over last Friday. Corn prices at at Bayuquan port are bouyant, among which drying new corn of Liaoning and Jilin with 14.5%-15% moisture prices at 1,680-1,690 yuan/tonne, up 5-10 yuan/tonne compared with last Friday. New corn prices at Shekou port, Guangdong stay at 1,850-1,860 yuan/tonne, keeping flat over last Friday. Scarce rainfall in North China in recent days and good weather patter in North China and Huang-huai areas are good for corn storage. For another thing, farmers show sentiments of reluctance to sell although market is still bullish as more and more goods are hoarded by traders, specifically, corn purchasing prices in some deep processors located in Shandong are raised surprisingly in these days to attract corn supplying in the context of dramatically lessened purchase volume and low corn stocks. Whereas, a wave of concentrated and peak sales of corn is likely to come in market before Spring Festival though feed consumption is now quite low, therefore, market players should be prudent in this regard. Shorter term, domestic corn prices will remain stable with strong momentum for growth.

    Daily review on sorghum and barley: today, prices for imported sorghum rise steadily which settle at 1,860-2,100 yuan/tonne at main ports (Tianjin, Nantong and Shanghai stop to report for exhausted stocks; Yancheng offers 2,100 yuan/tonne for dried corn; Guangdong 1,860 yuan/tonne, up 10 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 1,730-1,750 yuan/tonne; Nantong 1,800 yuan/tonne; Shekou port in Guangdong 1,700-1,760 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. Specifically, sorghum prices at some ports continue to edge up today. Overall, grains will remain strong in a short term, where an upward tendency is seen at some ports.