Daily review on soybean meal: US soybeans continued to fall last night, the same trend going to soybean meal in DCE today. Domestic soybean meal spots are a tad lower but go steady with futures today, yet turnover is not much. Soybean meal prices in coastal areas range from 2,920 to 2,980 yuan/tonne, some falling 10-20 yuan/tonne against yesterday (Tianjin prices 2,990 yuan/tonne, Shandong 2,920-2,980 yuan/tonne, Jiangsu 2,920-2,930 yuan/tonne, Dongguan 2,970-2,980 yuan/tonne, Guangxi 2,960-2,980 yuan/tonne). US soybeans continue to be pressured down in terms of active technical selling and better soybean growth in Brazil and Argentina with favorable rains to come. While affected by general demand, shipments of soybean meal are quite sluggish though crush margins are profitable and operating rate remains high. In this case, stocks keep growing where oil mills in some regions are bloated in inventories, resulting in continues decline in soybean meal. Whereas, soybean meal spots in a near term are not likely to plunge substantially but to vibrate with futures in a slow and downward pace as quite a lot of contracts need to implement and soybean meal is somehow supported by processors in consideration of sluggish oil market. Buyers for the moment can take a hand-to-mouth purchasing, additionally, attention should be paid on new rules of General Administration of Quality Supervision, if proven, market will become better and promising inside China, but bearish outside.

    Daily review on imported rapeseed meal: today, prices for imported rapeseed meal dip steadily, among which prices in coastal areas stand at 2,300-2,340 yuan/tonne with a drop of 10-20 yuan/tonne in some areas (Guangxi offers basis at RM805+0 yuan/tonne; Guangdong offers 2,300 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 keep firm, yet prices have small possibility 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 18th, 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 34,000 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. China's port stocks of fishmeal fall below 0.1 Mln tonnes with persisting supply tension, such being the cases, fishmeal in a short term will remain stable with strong momentum for growth supported by high offers from holders.

    Daily review on soybeans: today, prices for imported and distributed soybeans edge down steadily, among which prices stay at 3,440-3,480 yuan/tonne at Shandong ports, some falling 20 yuan/tonne. US soybeans continue to be pressured down in terms of active technical selling and better soybean growth in Brazil and Argentina with favorable rains to come. Additionally, market players now prefer to stand sidelines amid large soybean arrivals later, 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 limited 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: US soybeans and soybean meal overnight continued to fall due to technical selling and rainfall in some South American soybean growing areas to benefit the crop growth, by contrast, US soybean oil turned to rebound after sessions of decline for active arbitrage of buying soybean oil and selling soybean meal. Correspondingly, Dalian oils today slow down the falling pace followed by a modest rise in palm oil, among which some domestic soybean oil spots experience volatile sessions and palm oil spots are seen a tad higher, yet turnover is not much.  For the time being, US beans fell below 960 cents and run lower and weaker, meantime fragile fundamentals continue to drag down oils in market when soybean oil stocks are as high as 1.68 Mln tonnes and palm oil reaches 0.6 Mln tonnes with exceedingly high operating rate and large soybean arrivals, under such circumstances, oils may still be weak till stockpiling of small-packing oils is fully carried out in the run-up to holidays. Buyers might as well maintain a light inventory and take a hand-to-mouth purchasing strategy.

    Today's soybean oil: main prices for GB grade one soybean oil in coastal areas stand at 5,630-5,760 yuan/tonne, some fluctuating 10-30 yuan/tonne (Tianjin traders offer 5,700-5,710 yuan/tonne, Rizhao traders 5,750 yuan/tonne, Zhangjiagang traders 5,760 yuan/tonne, Guangzhou traders 5,630-5,640 yuan/tonne, Fujian traders 5,730-5,780 yuan/tonne).

    Today's palm oil: 24-degree palm oil prices in coastal areas are mostly between 5,140-5,260 yuan/tonne, a rise of 10-30 yuan/tonne mostly (Tianjin traders offer 5,250-5,260 yuan/tonne, a rise of 20 yuan/tonne; Rizhao traders 5,240-5,250 yuan/tonne, a rise of 10 yuan/tonne; Zhangjiagang traders offer 5,250 yuan/tonne, a rise of 30 yuan/tonne; Guangzhou 5,140 yuan/tonne, a rise of 10 yuan/tonne; Xiamen 5,200 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 6,300-6,550 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 continue to go up. 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 1,550-1,680 yuan/tonne, up 20-40 yuan/tonne over yesterday. Corn prices at JInzhou ports, Liaoning edge up on a small scale where corn of Liaoning and Inner Mongolia prices at 1,710-1,720 yuan/tonne, up 10-15 yuan/tonne over yesterday. Drying new corn of Liaoning and Jilin with 14.5%-15% moisture at Bayuquan port prices at 1,700-1,710 yuan/tonne, up 10-20 yuan/tonne compared with yesterday. New corn prices at Shekou port, Guangdong are raised to 1,900 yuan/tonne, a rise of 5 yuan/tonne over yesterday afternoon on transaction prices. Moreover, prices at 1,895 yuan/tonne yesterday afternoon were available at ports. Corn prices today continue to jump. As corn yield cut in northeastern belt becomes a forgone conclusion, farmers’ reluctance to sell goods go forward though traders have strong eagerness to hoard goods and hold out for prices, specifically, local deep processors revise corn purchasing prices upward significantly to scramble for more gains, in this case, corn prices in shorter term will keep high with stock building under way. 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 high purchasing prices of northeastern corn. Shorter term, domestic corn may remain strong, but market players should keep an eye on later policy in case of risks, on selling progress in corn belt and demands of downstream enterprises.

    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 stay high 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.