Daily review on soybean meal: US soybean prices edged lower last night, the same trend going to soybean meal in Dalian Commodity Exchange today where domestic soybean meal spots are steadily weighed down with futures, yet turnover is not much. Soybean meal prices in coastal areas range from 2,930 to 3,000 yuan/tonne, some falling 10-20 yuan/tonne against yesterday (Tianjin prices 2,990 yuan/tonne, Shandong 2,920-2,960 yuan/tonne, Jiangsu 2,930-2,940 yuan/tonne, Dongguan 2,990-3,000 yuan/tonne, Guangxi 3,000-3,020 yuan/tonne). Given that rainfall in parts of Argentina provides relief to concerns over yield losses and soybean planting acreage in the US next year is likely to be expanded, US soybeans are seen to be under pressure. While affected by general demand, sales of soybean meal is not bright though crush margins are profitable and operating rate remains high. Therefore, soybean meal inventories rise for five consecutive weeks to 770,000 tonnes week on week by 6%, weighing on spots further when fundamental pressure is such considerable. 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 the time spots are basically sold out. Moreover, fragile oils will somehow pave way for soybean meal from the perspective of oil mills. 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 2,300-2,340 yuan/tonne with a fluctuation of 20 yuan/tonne (Guangxi offers basis at RM805+0 yuan/tonne; Guangdong offers 2,310 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 keep firm, yet prices are less likely to negotiate and shipments at ports are general. Northern ports: fishmeal price for ordinary SD with 65% protein content in Peru is 12,800-12,900 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. 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 14th, 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 35,000 tonnes, Fuzhou 36,000 tonnes, Shanghai 19,000 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. High offers in the outer and tightened supply at ports ignite fishmeal holders to hold out for high prices as new-season fish catching remains unclear in Peru. Overall, fishmeal market will remain stable with strong momentum for growth.

    Daily review on soybeans: today, prices for imported and distributed soybeans keep firm, where prices keep flat at 3,460-3,480 yuan/tonne at Shandong ports against yesterday. Though imported soybeans are refrained to fall owing to strict port inspections, limited supply available for trade and traders' mind to high offers, US soybeans are still seen to be under pressure as rainfall in parts of Argentina provides relief to concerns over yield losses and soybean planting acreage in the US next year is likely to be expanded. Overall, imported and distributed soybeans in a shorter term will experience a volatile session amid market sentiments to stand sidelines and larger soybean arrivals later, to be specific, more than 17 Mln tonnes of soybeans may arrive at ports during December and January. Attention should still be paid to port inspections and soybean arrivals.

    Daily review on oils: beans in Chicago Board of Trade continued to pare gains overnight as favorable rains in parts of Argentina eased concerns over planting acreage cut and yield losses, accordingly, Dalian oils today slump where domestic soybean oil and palm oil spots decrease by 30-50 yuan/tonne, yet turnover is not much. Moreover, US soybean contracts for January delivery are on the risk of falling below 960 cents when soybean oil stocks are as high as 1.68 Mln tonnes and palm oil are climbed to 0.59 Mln tonnes with exceedingly high operating rate and large soybean arrivals. Nevertheless, oils glut is going on as the peak time for stockpiling is delayed, in this case, oil spots shorter term will stay weak, therefore, buyers might as well maintain a light inventory and take chances to make replenishment on a small scale when price tumbles go steady.

    Today's soybean oil: main prices for GB grade one soybean oil in coastal areas stand at 5,610-5,770 yuan/tonne, most falling 30-50 yuan/tonne (Tianjin traders offer 5,700-5,710 yuan/tonne, Rizhao traders 5,770 yuan/tonne, Zhangjiagang traders 5,730 yuan/tonne, Guangzhou traders 5,610-5,620 yuan/tonne, Fujian traders 5,730-5,770 yuan/tonne).

    Today's palm oil: 24-degree palm oil prices in coastal areas are mostly between 5,150 and 5,240 yuan/tonne, a decline of 30-50 yuan/tonne in most areas (Tianjin traders offer 5,230-5,240 yuan/tonne, a drop of 30 yuan/tonne; Rizhao traders 5,230-5,240 yuan/tonne, down 30 yuan/tonne; Zhangjiagang traders offer 5,220 yuan/tonne, keeping flat; Guangzhou 5,130 yuan/tonne, down 50 yuan/tonne; Xiamen traders have not quoted).

    Daily review on imported rapeseed oil: today, prices for imported rapeseed oil rise steadily, among which prices in coastal areas are 6,300-6,550 yuan/tonne, decreasing by 30-50 yuan/tonne (Basis: Maple in Fangchenggang, Guangxi offers 1805-150 and 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 and East China were all plunged, 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 vibrate with upward tendency. Main corn purchasing prices in Shandong deep processors stay at 1,670-1,770 yuan/tonne and some keep rangebound on a small scale, by contrast, purchasing prices in the northeast are revised to 1,520-1,680 yuan/tonne, up 20-100 yuan/tonne over yesterday. Corn prices at JInzhou ports, Liaoning edge up where corn of Liaoning and Inner Mongolia prices at 1,700-1,705 yuan/tonne, up 10 yuan/tonne over yesterday, and corn with moisture is 1,450 yuan/tonne. Drying new corn of Liaoning and Jilin with 14.5%-15% moisture at Bayuquan port prices at 1,690 yuan/tonne, a tad higher than yesterday on the highest price. New corn prices at Shekou port, Guangdong are raised to 1,860-1,880 yuan/tonne, a rise of 20 yuan/tonne over yesterday. Corn purchasing prices in some northeastern deep processors have soared in recent two days, yet farmers’ reluctance to sell go strong although market is still bullish as more and more goods are hoarded by traders, in this case, prices for northeastern corn in sales area and at northern and southern ports are all seen rising when factored in costs. Whereas, with sufficient gains supply in North China, a wave of concentrated and peak sales of corn is likely to come in market before year 2018 amid low feed consumption and cautious attitudes of feed sectors toward purchasing. Shorter term, domestic corn prices will remain strong, thus market players should keep an eye on selling progress in corn belt and stockpiling of downstream enterprises in the run-up to holidays.

    Daily review on sorghum and barley: today, prices for imported sorghum keep firm 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). 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. Overall, grains will remain strong in a short term, where an upward tendency is seen at some ports.