Daily review on soybean meal: US soybean prices continued to fall last night, the same trend going to Dalian soybean meal today. Domestic soybean meal spots keep stable but a tad lower tracking futures, yet turnover is still light. Soybean meal prices in coastal areas range from 2,910 to 2,980 yuan/tonne, a steady reduction of 10-20 yuan/tonne against yesterday (Tianjin prices 2,980 yuan/tonne, Shandong 2,910-2,950 yuan/tonne, Jiangsu 2,910-2,930 yuan/tonne, Dongguan 2,970-2,980 yuan/tonne, Guangxi 2,920-2,940 yuan/tonne). US soybeans plunged to a three-month low after a fifth straight sessions of decline owing to technical selling and favorable rains in South America to boost crop yield. While with profitable crush margins and high operating rate, stocks keep growing where oil mills in some regions are bloated in inventories and have to make a machine halt, resulting in continuous decline in soybean meal spots amid oversupply. Nevertheless, presale upon contracts for December-January delivery are quite good the time spots are basically sold out, in this case, spot decline is probably less than that of futures on the back of supports for soybean meal in oil mills. Overall, soybean meal spots in a near term will vibrate with futures in a downward tendency as soybean meal lacks impetus to rebound factored in less bullish factors for the present. Buyers for the time being can take a hand-to-mouth purchasing.

    Daily review on imported rapeseed meal: today, prices for imported rapeseed meal keep firm, among which prices in coastal areas stand at 2,300-2,340 yuan/tonne (Guangxi offers basis at RM805+0 yuan/tonne; Guangdong offers 2,300 yuan/tonne; Fujian offers basis at RM805+10). Rapeseed meal stocks in South China this year are overwhelmingly higher than the figures years earlier the time aquaculture is off-season. Though pressure on rapeseed meal persists,  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 in market. Shorter term, rapeseed meal will vibrate with futures frequently in a certain range.

    Daily review on fishmeal: today, prices for imported fishmeal keep firm, yet prices have little 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. Port stocks: Hangpu has 33,000 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. Fishmeal prices in market now keep firm as market players are waiting for Peruvian survey in late December, overall, fishmeal market will remain stable with strong momentum for growth.

    Daily review on soybeans: today, prices for imported and distributed soybeans keep firm after sessions of falls, where prices are flat at 3,440-3,480 yuan/tonne at Shandong ports against yesterday. On one hand, limited supplies in market available for trade and traders’ strong sentiments for higher offers render imported and distributed soybeans to be stable, on the other hand, US beans shorter term run lower and weaker around 950 cents as rains in South America somehow bring a better prospect for crop yield, moreover, imports of soybeans are seen to arrive in large quantities, as a result, market players now are seen to stand sidelines. Generally, imported and distributed soybeans in a shorter term will experience a volatile session with downward tendency in terms of increasing market circulation. Attention should be paid to port inspections and soybean arrivals.

    Daily review on oils: US soybeans reached a three-month nadir overnight after a fifth consecutive day of decline for rains in part of South American soybean growing areas might boost crop yield, and soybean oil were seen falling as well. Correspondingly, Dalian oils today all edge lower where domestic soybean oil and palm oil spots go down, generally, turnover today is estimated to be few.  For the time being, US beans run lower and weaker around 950 cents as rains in South America somehow bring a better prospect for crop yield. Meantime with poor demands and light stockpiling in the run-up to holidays, oversupply continues to drag down oils in market when soybean oil stocks are as high as 1.68 Mln tonnes and palm oil is close to 0.61 Mln tonnes with exceedingly high operating rate, healthy crush margins and large soybean arrivals, under such circumstances, oil spots for a short time will go weak tracking futures. Buyers might as well take a hand-to-mouth purchasing strategy.

    Today's soybean oil: main prices for GB grade one soybean oil in coastal areas stand at 5,540-5,700 yuan/tonne, falling 40-50 yuan/tonne (Tianjin traders offer 5,660-5,670 yuan/tonne, Rizhao traders 5,700 yuan/tonne, Zhangjiagang traders 5,700 yuan/tonne, Guangzhou traders 5,540-5,550 yuan/tonne, Fujian traders have not quoted yet).

    Today's palm oil: 24-degree palm oil prices in coastal areas are between 5,100 and 5,200 yuan/tonne, most falling 40-60 yuan/tonne (Tianjin traders offer 5,190-5,200 yuan/tonne, a drop of 60 yuan/tonne; Rizhao traders 5,200 yuan/tonne, down 50 yuan/tonne; Zhangjiagang traders offer 5,200 yuan/tonne, a decline of 50 yuan/tonne; Guangzhou 5,100 yuan/tonne, down 40 yuan/tonne; Xiamen traders have not quoted).

    Daily review on imported rapeseed oil: today, prices for imported rapeseed oil go down, among which prices in coastal areas are 6,300-6,460 yuan/tonne, most decreasing by 20-60 yuan/tonne (Maple in Fangchenggang, Guangxi offers basis at 1805-150; Yinxiang in Xiamen, Fujian stops to quote; Fuzhiyuan in Dongguan, Guangdong offers 6,500 yuan/tonne for GB grade one rapeseed oil), yet turnover is not much. Rapeseed oil stocks are consumed, 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 0.6Mln 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 is launched in the run-up to holidays.

    Daily review on corn: today, part of domestic corn prices continue to go up. Main corn purchasing prices in Shandong deep processors keep flat at 1,670-1,770 yuan/tonne, by contrast, purchasing prices in the northeast are revised to 1,550-1,680 yuan/tonne, some up 30-40 yuan/tonne over yesterday. Corn prices at Jinzhou ports, Liaoning edge up where corn of Liaoning and Inner Mongolia prices at 1,740-1,750 yuan/tonne, up 30 yuan/tonne over yesterday. Drying new corn of Liaoning and Jilin at Bayuquan port prices at 1,740 yuan/tonne, up 30 yuan/tonne compared with yesterday. New corn prices at Shekou port, Guangdong are further raised to 1,930-1,950 yuan/tonne for contracts upon January delivery, a rise of 30-40 yuan/tonne over yesterday. Meanwhile, spot prices are settled at 1,900-1,920 yuan/tonne, up 20 yuan/tonne compared with yesterday. Prices for northeastern corn continue to jump, yet farmers’ reluctance to sell goods goes forward though traders have strong eagerness to hoard goods and hold out for prices, additionally, most surrounding deep processors in the time of low inventory levels revise corn purchasing prices upward significantly to attract more corn supplying, 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, local deep processors are not so proactive in corn purchasing, consequently, prices keep firm in light of general sales.  Moreover, with soaring grain prices in northeast, feed sectors in sales area recently have also been not proactive in purchasing. On the whole, high-quality corn in northeast has little trouble in selling, and shorter term, domestic corn prices will remain strong, thus market players should keep an eye on farmers’ selling progress in corn belt and any changes in downstream demands.

    Daily review on sorghum and barley: today, prices for imported sorghum are stable but with some increases, which settle at 1,870-2,100 yuan/tonne at main ports, up 10 yuan/tonne (Tianjin, Nantong and Shanghai stop to report for exhausted stocks; Yancheng offers 2,100 yuan/tonne for dried corn; Guangdong 1,870 yuan/tonne, up 10 yuan/tonne). Meantime prices for most imported barley keep strong which stay at 1,660-1,880 yuan/tonne at main ports (Tianjin has not quoted 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.