Daily review on soybean meal: US soybeans and Dalian soybean meal fall down sharply, correspondingly, soybean meal spots continue to go lower, and turnover is still light. Soybean meal prices in coastal areas range from 2,890 to 2,960 yuan/tonne, most down 20-40 yuan/tonne (Tianjin prices 3,000 yuan/tonne, Shandong 2,905-2,960 yuan/tonne, Jiangsu 2,890-2,950 yuan/tonne, Dongguan 2,950-2,960 yuan/tonne, Guangxi 2,940-2,960 yuan/tonne). Good weather in Brazil soybean growing area and improved weather pattern in Argentine put strain on US soybeans amid effects of China's new regulation on US soybean imports. Meantime, soybean meal stocks pile up with large soybean arrivals, profitable soybean crush margins and high operating rate in spite of general demand, in this case, soybean meal spots continue to be weighed down by fundamental pressure. Nevertheless, contracts in oil mills present large the time spots are basically sold out, thus soybean meal is limited to fall along with supports from oil mills in consideration weaker performance of soybean oil. Generally, soybean meal will remain weak in market, so buyers for the time being can stay sidelines.

    Daily review on imported rapeseed meal: today, prices for imported rapeseed meal drop steadily, among which prices in coastal areas stand at 2,270-2,310 yuan/tonne, some down 10 yuan/tonne (Guangxi offers 2,270 yuan/tonne, down 10 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 figure a year earlier the time aquaculture is off-season, while soybean meal stocks keep growing in the wake of impressive soybean crush. Though rapeseed meal is seen to be under pressure, expanded price gap between soybean meal and rapeseed meal may somehow put supports to rapeseed meal in market. On the whole, rapeseed meal has resistance to fall and may go weak with futures in a near time.

    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 29,000 tonnes, Fuzhou 34,000 tonnes, Shanghai 15,000 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. As market players at home and abroad are waiting for survey result in Peru, fishmeal in a near time will keep strong in market.

    Daily review on soybeans: today, prices for imported and distributed soybeans are stable after sessions of decline, among which prices at Shandong ports keep flat at 3,350-3,400 yuan/tonne. On one hand, limited supplies available for trade in market and traders’ sentiment to hold out for prices support imported soybeans in market. US soybeans continued to plunge as a bright prospect for soybean yield in Brazil may somewhat limit soybean exports in the US. On one hand, market players now prefer to stand sidelines as domestic soybeans are sufficient in supply and large soybeans are arrived at ports amid poorer demand, as a result, prices for imported and distributed soybeans may still be low. Attention should be paid to port inspections and soybean arrivals.

    Daily review on oils: beans in Chicago Board of Trade overnight continued to plunge as the impetus to trend up previously buoyed by weather concern had been eased recently, while Dalian oils open low and end lower today where domestic soybean oil spots decrease by 20-50 yuan/tonne mostly and palm oil falls 20 yuan/tonne in part. Weather pattern in Brazil growing area is good overall and favorable rainfall is expected to come in weekend in part of Argentine, additionally, half of the US soybean exports this year fail to meet the China’s new regulations in 2018, given that, US soybean’s performance in market will be affected and refrained.  Nevertheless, stockpiling in the run-up to holidays is now starting with soybean oil and palm oil having decreased to 1.64 Mln tonnes (50,000 tonnes less) and 0.59 Mln tonnes in stocks respectively, therefore oil spots in the market have little probability to fall a lot. Overall, oils in a short time will experience frequently volatile sessions with futures. 

    Today’s soybean oil: main prices for GB grade one soybean oil in coastal areas stand at 5,500-5,630 yuan/tonne, most falling 20-50 yuan/tonne (Tianjin traders offer 5,570-5,580 yuan/tonne, Rizhao traders 5,600 yuan/tonne, Zhangjiagang traders 5,620 yuan/tonne, Guangzhou traders 5,500 yuan/tonne, Fujian traders have not quoted yet).

    Today’s palm oil: 24-degree palm oil prices in coastal areas are probably between 5,100 and 5,210 yuan/tonne, some falling 10-20 yuan/tonne (Tianjin traders offers 5,200-5,210 yuan/tonne, keeping flat; Rizhao traders 5,180 yuan/tonne; Zhangjiagang traders 5,160 yuan/tonne, down 20 yuan/tonne; Guangzhou 5,100 yuan/tonne, down 20 yuan/tonne, Xiamen 5,170 yuan/tonne, down 10 yuan/tonne).

    Daily review on imported rapeseed oil: today, prices for imported rapeseed oil decline steadily, among which prices in coastal areas are 6,260-6,400 yuan/tonne, some down 10-20 yuan/tonne (Basis: Maple in Fangchenggang, Guangxi offers 1805-150; Yinxiang in Xiamen, Fujian stop to report; Shenheng in Dongguan, Guangdong offers 1805-160). Enlarged price gap between soybean oil and rapeseed oil will curb demands for rapeseed oil though operating rate keeps high and oils pile up in stocks. In general, rapeseed oil in a short term will run weak tracking futures as rapeseed oil storage selling on January 5th is estimated to be 57,000 tonnes and stockpiling of small-packing oils in the run-up to holidays is delayed.

    Daily review on corn: today, prices for domestic corn remain stable with small fluctuations. Main purchasing prices for corn in Shandong deep processors stay at 1,710-1,820 yuan/tonne, some rising around 10-20 yuan/tonne from yesterday, by contrast, main purchasing prices in the northeast are stabilized at 1,610-1,730 yuan/tonne, some falling 10 yuan/tonne against yesterday. Corn at Jinzhou port, Liaoning mainly prices at 1,745-1,755 yuan/tonne but 1,450 yuan/tonne for corn with 30% moisture, keeping flat. Corn of Liaoning and Jilin with 14.5%-15% moisture at Bayuquan port keeps flat at 1,740 yuan/tonne. Transaction prices for new corn at Shekou port, Guangdong range from 1,890 to 1,910 yuan/tonne, down 10 yuan/tonne against yesterday. Buoyed by soaring prices in Northeast China, farmers in North China are increasingly reluctant to sell goods amid strong sentiments to high offers, consequently, corn purchasing prices are raised by enterprises to attract corn supplying this week. However, with corn prices reaching a high level and rumors about old corn selling prevailing, traders now have strong willingness to sell out in consideration of profitable margins and deep processors keep supplying, as a result, corn prices turn stable after gains, of which corn prices at northern and southern ports continue to pare gains. On the whole, high-quality corn in market has no trouble in selling and with Spring Festival around the corner, enterprises in the downstream are gradually building their stocks, in others words, corn will remain strong in consideration of strong rigid demands. 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 1,880-1,890;  Shanghai 1,900 yuan/tonne; Guangdong 1,870 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). 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 November wane and reach a nadir, besides grain supply at Tianjin and Nantong ports become tightened, where barley at Qingdao port is basically sold out and sorghum supply in North China and East China is deficient with turnover mostly based on contract, given that, market is to be buoyed by such bullish fundamentals. Overall, grains will remain strong in a short term, where an upward tendency is likely to come about at some ports before Spring Festival.