Daily review on soybean meal：US soybeans continued to fall overnight, charting a sixth consecutive day of decline, correspondingly, Dalian soybean meal today are seen to ease mildly where domestic soybean meal prices edge lower with futures, yet turnover turns light. Soybean meal prices in coastal areas range from 2,890 to 2,960 yuan/tonne, a reduction of 10-20 yuan/tonne against yesterday (Tianjin prices 3,000 yuan/tonne, Shandong 2,900-2,960 yuan/tonne, Jiangsu 2,900-2,920 yuan/tonne, Dongguan 2,960-2,970 yuan/tonne, Guangxi 2,950-2,960 yuan/tonne). Bearish factors on US soybeans seemed to be intensified when beneficial rains in Brazil and Argentina somewhat boost soybean growth and inspection for imported US soybeans with impurities go tough in China, consequently, futures in Chicago Board of Trade eased for a sixth straight session, reaching the nadir over three months. Nevertheless, soybean crush margins are still profitable and operating rate in oil mills remains high though buyers are now more cautious about market in consideration of the declining trends. In general, soybean meal stocks in oil mills have risen for five consecutive weeks to 730,000 tonnes week on week by 7%, where some oil mills are bloated and are forced to make a machine halt the time goods are urged to be delivered, given that, soybean meal spots will be weighed down under such fundamental pressure. Yet, outstanding contracts in oil mills present large when spots are basically sold out, in this case, soybean meal is limited to fall along with supports from processors. Overall, soybean meal will vibrate with futures in a downward tendency till any substantially bullish factors come into sight. Buyers for the time being can take a hand-to-mouth purchasing.

    Daily review on imported rapeseed meal: today, prices for imported rapeseed meal plummet steadily, among which prices in coastal areas stand at 2,300-2,320 yuan/tonne with a drop of 10-20 yuan/tonne in some areas (Guangxi offers basis at RM805+0 yuan/tonne; Guangdong offers 2,290 yuan/tonne, falling 10 yuan/tonne; Fujian stops to report). 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 32,000 tonnes, Fuzhou 36,000 tonnes, Shanghai 18,000 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. Supply of fishmeal becomes tight in China's market the time fishmeal stays stable in a high level in the outer, overall, fishmeal market will remain stable with strong momentum for growth.

    Daily review on soybeans: today, prices for most imported and distributed soybeans remain stable, among which prices stay at 3,420-3,480 yuan/tonne at Shandong ports, while some falling 20 yuan/tonne. US soybeans overnight reached a three-mouth low due to China’s stricter inspection standards for imported US soybeans, charting a sixth consecutive day of decline, besides market players now are seen to stand sidelines in consideration of large soybean arrivals later. Consequently, imported and distributed soybeans in a shorter term will experience a volatile session with downward tendency in terms of increasing market circulation. On the other hand, limited supplies available for trade in market and some traders’ strong sentiments for higher offers limit the downside. Attention should be paid to port inspections and soybean arrivals.

    Daily review on oils: US soybeans last night reached a three-mouth low due to China’s stricter inspection standards for imported US soybeans, charting a sixth consecutive day of decline, and the falling trend went to US soybean oils as well. Correspondingly, Dalian oils today open low and end lower with significant falls where domestic soybean oil and palm oil spots tumble impressively with futures, in this case, turnover is estimated to be light. Though futures in Chicago Board of Trade are still bearish due to rains in South America and stricter standards for imported US soybeans with impurities, soybean oil stocks are now as high as 1.68 Mln tonnes and palm oil goes over 0.61 Mln tonnes with exceedingly high operating rate, healthy crush margins and large soybean arrivals, yet on the other hand, driven by buying up trends, stockpiling of small packing oils in the run-up to holidays is delayed amid sluggish terminal demands, in this case, oil spots for a short time will go weak tracking futures in the context of falling oil futures at home and abroad by oil glut. Buyers might as well stay sidelines for the moment.

    Today's soybean oil: main prices for GB grade one soybean oil in coastal areas stand at 5,480-5,600 yuan/tonne, falling 40-120 yuan/tonne (Tianjin traders offer 5,570-5,580 yuan/tonne, Rizhao traders 5,600 yuan/tonne, Zhangjiagang traders 5,590 yuan/tonne, Guangzhou traders 5,480-5,550 yuan/tonne, Fujian traders have not quoted yet).

    Today's palm oil: 24-degree palm oil prices in coastal areas are between 4,990 and 5,130 yuan/tonne, most falling 70-110 yuan/tonne (Tianjin traders offer 5,120-5,130 yuan/tonne, a drop of 70 yuan/tonne; Rizhao traders 5,090 yuan/tonne, down 110 yuan/tonne; Zhangjiagang traders offer 5,100 yuan/tonne, a decline of 100 yuan/tonne; Guangzhou 4,990-5,010 yuan/tonne, down 100 yuan/tonne; Xiamen traders have not quoted).

    Daily review on imported rapeseed oil: today, prices for imported rapeseed oil tumble significantly, among which prices in coastal areas are 6,200-6,350 yuan/tonne, decreasing by 80-100 yuan/tonne (Maple in Fangchenggang, Guangxi offers basis at 1805-150; Yinxiang in Xiamen, Fujian stops to quote; Fuzhiyuan in Dongguan, Guangdong offers 6,420 yuan/tonne for GB grade one rapeseed oil, down 80 yuan/tonne), 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, 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 1,750-1,770 yuan/tonne, up 10-20 yuan/tonne over yesterday. Corn prices at Bayuquan port turn stable after gains, where prices for drying new corn of Liaoning and Jilin with 14.5%-15% moisture keep flat at 1,740 yuan/tonne. New corn prices at Shekou port, Guangdong are further raised to 1,950 yuan/tonne for contracts upon January delivery, a rise of 20 yuan/tonne over yesterday. Meanwhile, spot prices are settled at 1,950 yuan/tonne, up 30 yuan/tonne compared with yesterday. Prices for northeastern corn are seen to jump with strong momentum, yet farmers’ reluctance to sell goods goes forward though traders have strong eagerness to hoard goods and hold out for prices, additionally, most local 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, processors are not so proactive in corn purchasing, consequently, corn market is seen to be bearish along with general sales and lower feed consumption. On the whole, domestic corn prices shorter term 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 keep firm after gains which settle at 1,870-2,100 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 offers keep flat at 1,870 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). For the present, corn prices in producing belt and at southern and northern ports are seen rising all the time, bring substantial supports to sorghum and barley. Additionally, 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 in the run-up to Spring Festival.