Daily review on soybean meal: Dalian soybean meal today continues to rebound, and lower prices may attract some deals. Soybean meal prices in coastal areas range from 2,920 to 2,980 yuan/tonne, up 10-20 yuan/tonne tracking futures (Tianjin prices 3,040 yuan/tonne, Shandong 2,930-2,935 yuan/tonne, Jiangsu 2,920-2,930 yuan/tonne, Dongguan 2,970-2,980 yuan/tonne, Guangxi 2,940-2,960 yuan/tonne). Contracts in oil mills are still large the time spots are basically sold out, as a result, soybean meal spots for the moment may welcome a small rebound tracking continuous rises in futures when soybean meal is supported by oil mills in light of sluggish soybean oil market. Whereas, soybean meal stocks continue to pile up, reaching 0.87 Mln tonnes week on week by 13% on the back of good crush margins and high operating rate. Generally speaking, some oil mills have risks in bloated inventories and machine halt, which limits the upside of spot prices, and overall, soybean meal will remain weak and pare gains in spite of any rebounds. Buyers for the present can take a hand-to-mouth purchasing and make replenishment on a small scale upon bargain hunting if stocks are exhausted. 

    Daily review on imported rapeseed meal: today, prices for imported rapeseed meal go steady, among which prices in coastal areas stand at 2,250-2,330 yuan/tonne (Guangxi offers basis at RM805+0 yuan/tonne; Guangdong offers 2,290 yuan/tonne; Fujian stops to report). Rapeseed meal stocks in South China this year are still higher than the figures years earlier. But demand for rapeseed meal becomes poor the time soybean meal stocks keep growing in the wake of large soybean supplies and impressive soybean crush, in this case, rapeseed meal is seen to be under pressure. Shorter term, rapeseed meal will vibrate with futures frequently, therefore buyers for the moment can take a hand-to-mouth purchasing.

    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 31,000 tonnes, Fuzhou 35,000 tonnes, Shanghai 16,000 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 keep stable for J/F delivery, in detail, the fishmeal offer for ordinary SD with 65% protein content in Peru stays at USD $1,820 per tonne, USD $1,980 per tonne for super steam fishmeal with 68% protein content; the offer in Chile ordinary SD with 65% protein content is USD $1,850 per tonne, USD $1,980 per tonne for excellent fishmeal with 68% protein content. Situations about Peruvian coastal fish resources are not optimistic, therefore with falling domestic stocks, fishmeal in market will remain strong.

    Daily review on soybeans: today, prices for imported and distributed soybeans are stable, among which prices at Shandong ports keep flat at 3,380-3,450 yuan/tonne. Limited supplies available for trade in market support imported soybeans in market. Chicago Board of Trade stopped business last night, but continuous rains in South America has exposed threat on US soybeans in market, moreover, market players have strong preference to stand sidelines as domestic soybeans are sufficient in supply and large soybeans are arrived at ports. Overall, imported and distributed soybeans in a shorter term may run weak in the market. Attention should be paid to port inspections and soybean arrivals.

    Daily review on oils: Chicago Board of Trade stopped business last night, while Dalian soybean oil rise mildly with some spots go up and palm oil experience a volatile session. Indeed, lower prices may attract some deals, but turnover overall is not much. Continuous rains in South America has exposed threat on US soybeans in market, but with fast delivery recently, market in some aspects is supported as soybean oil and palm oil stocks have plummeted to 1.64 Mln tonnes and 0.59 Mln tonnes respectively in spite of large soybean supplies, healthy soybean crush and high operating rate. On the whole, oils in a near future will remain weak in volatile sessions amid oversupply. Buyers who are deficient in stocks can take chances to make replenishment upon bargain hunting, but chasing high prices is not recommended. 

    Today’s soybean oil: main prices for GB grade one soybean oil in coastal areas stand at 5,480-5,630 yuan/tonne, some rising 10-20 yuan/tonne (Tianjin traders offer 5,570-5,580 yuan/tonne, Rizhao traders 5,600 yuan/tonne, Zhangjiagang traders 5,630 yuan/tonne, Guangzhou traders 5,480-5,500 yuan/tonne, Fujian traders 5,630-5,660 yuan/tonne).

    Today’s palm oil: 24-degree palm oil prices in coastal areas are probably between 5,040 and 5,160 yuan/tonne, some fluctuating 10-20 yuan/tonne (Tianjin traders offers 5,150-5,160 yuan/tonne, down 10 yuan/tonne; Rizhao traders 5,130-5,140 yuan/tonne, down 10 yuan/tonne; Zhangjiagang traders 5,150 yuan/tonne, up 20 yuan/tonne; Guangzhou 5,040 yuan/tonne, Xiamen 5,100 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 6,270-6,420 yuan/tonne (Basis: Maple in Fangchenggang, Guangxi offers 1805-150; Yinxiang in Xiamen, Fujian and Shenheng in Dongguan, Guangdong stop to report). Rapeseed oil stocks in South China and East China last week were all downgraded, but improved weather pattern in South America weighs on US soybeans. Yet, in the context of exceedingly high operating rate and overall accumulated oils stocks, rapeseed oil will remain weak in a volatile session for peak-season stockpiling of packing oils in the run-up to holidays is delayed by poor market. Buyers for the present can take a hand-to-mouth purchasing.

    Daily review on corn: today, prices for domestic corn remain stable with upward tendency. Main purchasing prices for corn in Shandong deep processors stay at 1,706-1,820 yuan/tonne, some rising around 10-16 yuan/tonne from yesterday, by contrast, main purchasing prices in the northeast are stabilized at 1,560-1,730 yuan/tonne and corn purchasing prices in Songyuan Cargill decrease by 10 yuan/tonne. Corn at Jinzhou port mainly prices at 1,755-1,770 yuan/tonne but 1,460 yuan/tonne for corn with 30% moisture. Corn with 14.5%-15% moisture at Bayuquan port keeps flat at 1,750 yuan/tonne. Spot prices for new corn at Shekou port, Guangdong are 1,950 yuan/tonne, and prices are negotiable, where transaction prices yesterday were settled at 1,930-1,940 yuan/tonne. Market sentiments may be affected as rumors prevail in northeastern market that corn auction is to be ahead of schedule and targeted sales will come about in recent days. Cargill in Songyuan today lowers corn prices by 10 yuan/tonne with no exception of slight fall in northeastern corn, besides, a wave of peak selling may come about before Spring Festival in main corn belt, thus attention should be paid on corn supply pressure. Yet, corn prices in Hebei and Shandong recently have been raised by 20-40 yuan/tonne as farmers and holders are strongly reluctant to sell out goods, moreover, with Spring Festival around the corner, feed sectors and deep processors will gradually build their inventories in consideration of increasing pig raising in pig fatten period, at that time, demand for corn is seen on the increase. Overall, corn in a short time will remain strong in market, therefore attention should be paid on corn supply/demand balance and related policies.

    Daily review on sorghum and barley: today, prices for imported sorghum keep stable which settle at 1,880-2,100 yuan/tonne at main ports (Tianjin offers 1,980 yuan/tonne, Nantong stops to report for exhausted stocks; Yancheng offers 2,100 yuan/tonne for dried corn; Shanghai 1,900 yuan/tonne; Guangdong 1,880-1,890 yuan/tonne). Meantime prices for most imported barley keep firm which stay at 1,710-1,800 yuan/tonne at main ports (Tianjin has not reported yet; Zhangjiagang 1,730-1,750 yuan/tonne; Nantong 1,740-1,800 yuan/tonne; Shekou port in Guangdong 1,710-1,770 yuan/tonne). Corn prices in corn belt and at northern and southern ports keep strong, greatly supporting sorghum and barley in market. In addition, 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 few vessels are estimated to arrive before Spring Festival, in detail, one vessel in Tianjin and another two vessels in Nantong. Overall, grains will remain strong in a short term, where an upward tendency is likely to come about at some ports before Spring Festival.