Daily review on soybean meal: US soybeans last Friday picked up, the same trend going to Dalian meal today, of which domestic soybean meal spots remain stable mostly amid fluctuations in some soybean meal. Soybean meal prices in coastal areas range from 2,900 to 2,940 yuan/tonne, a fluctuation of 10-20 yuan/tonne against last Friday (Tianjin prices 2,950 yuan/tonne, Shandong 2,910-2,930 yuan/tonne, Jiangsu 2,890-2,920 yuan/tonne, Dongguan 2,900-2,910 yuan/tonne, Guangxi 2,900-2,920 yuan/tonne). Meantime, with quite a lot contracts to implement in oil mills and expected stockpiles in feed sectors in the second half of the January, the run-up to holidays, soybean meal spots now slow down the falling pace and even experience a small rally tracking futures. Yet, price upside of US soybeans is likely to be capped seeing a lower-than-expected exports. As some oil mills were bloated with soybean meal and were forced to make a machine halt, soybean crush is now seen falling to 1.68 Mln tonne week on week by 14%, whereas, total crush may recover to 1.85 Mln tonnes in the following two weeks in light of profitable crush margins and sufficient supply, to be specific, about 8.09 Mln tonnes of soybeans may arrive at ports in January. Generally speaking, soybean meal is probable to run weak in the market as it lacks the impetus to price up amid persisting stock pressure, in that buyers can take a hand-to-mouth purchasing strategy.

    Daily review on imported rapeseed meal: today, prices for imported rapeseed meal go steady amid some fluctuations, among which prices in coastal areas stand at 2,260-2,290 yuan/tonne with a fluctuation of 10 yuan/tonne (Guangxi offers 2,270 yuan/tonne, up 10 yuan/tonne; Guangdong 2,260 yuan/tonne, down 10 yuan/tonne; Fujian 2,300 yuan/tonne). Rapeseed meal stocks in South China last week climbed to 62,000 tonnes week on week by 34% time aquaculture is off-season, while soybean meal stocks keep growing in the wake of impressive soybean crush. On the whole, rapeseed meal in a short term may go weak with futures in light of persisting pressure on it.

    Daily review on fishmeal: today, prices for imported fishmeal keep firm, yet bargaining is confined to ranges and shipments at ports are light. Northern ports: fishmeal price for ordinary SD with 65% protein content in Peru is 13,000-13,200 yuan/tonne; 13,700-13,900 yuan/tonne for Japanese SD with 67% protein content; 14,000-14,200 yuan/tonne for super steam fishmeal with 68% protein content. Southern ports: fishmeal price for ordinary SD with 65% protein content in Peru is 12,900 yuan/tonne; 13,700 yuan/tonne for Japanese SD with 67% protein content; 14,000 yuan/tonne for super steam fishmeal with 68% protein content. Fishing: till January 3rd, about 6,026 tonnes of fish have been caught in northern Peru in B season over 18 years, accounting for 0.4% of the total volume; fishing quota for this season is 1.49 Mln tonnes, among which 148,3974 tonnes remain unfinished. Port stocks: Hangpu has 24,000 tonnes, Fuzhou 33,000 tonnes, Shanghai 11,000 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 $1,820 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. A five-day fishing trial is started in Peru, and according to the Ministry of Production, if the fishing goes well, a new-season fishing will be projected and continued, in this case, market players at home and abroad now stand sidelines for the results. 

    Daily review on soybeans: affected by Commodity Inspection Department’s strict port investigation, prices of most imported soybeans for distribution are stopped to report in Shandong, while some US Gulf soybeans at Weifang ports price at 3,500-3,520 yuan/tonne US soybeans now price up, supported by concern over Argentine weather. Yet, price upside of US soybeans is likely to be capped seeing a lower-than-expected exports. Furthermore, in consideration of ample domestic soybean supply and large soybean arrivals amid poor demand, market players estimate that price decline may come after resumed quotation, still, attention should paid to port inspections and soybean arrivals.

    Daily review on oils: US soybeans and soybean meal last Friday night finished high due to concern over Argentine weather, while US soybean oil ended lower, being dragged down by low prices of crude oil. Accordingly, Dalian oils today come off low opens where domestic soybean oil and palm oil spots edge low with futures, yet turnover is not much. Beans in Chicago Board of Trade experience a volatile session for US soybeans are somewhat weighed down by sluggish exports, but on the other hand, fueled by weather concern in South America. While in the context of huge oil stocks, in detail, soybean oil climbs over 1.6 Mln tonnes and palm oil is around 0.6 Mln tonnes in stocks, it still takes time to consume soybean meal stocks, furthermore, price upside of oil spots may be capped. Generally, frequent vibrations come along with price upside, and as Spring Festival is around the corner, stockpiles of packing oils are now under way, where market demand turn s better and delivery in oil mills goes fast after New Year’s Day, all in all, oils are expected to price up in volatile sessions in the run-up to holidays. Buyers for the moment can stand sidelines and make proper replenishment when price tumble goes steady.

    Today's soybean oil: main prices for GB grade one soybean oil in coastal areas stand at 5,650-5,800 yuan/tonne, falling 20-40 yuan/tonne in most areas (Tianjin traders offer 5,710 yuan/tonne, Rizhao traders 5,710 yuan/tonne, Zhangjiagang traders 5,730 yuan/tonne, Guangzhou traders 5,650 yuan/tonne, Fujian traders 5,780-5,800 yuan/tonne).

    Today's palm oil: 24-degree palm oil prices in coastal areas are mostly between 5,220 and 5,320 yuan/tonne, a decline of 20-40 yuan/tonne (Tianjin traders offer 5,310-5,320 yuan/tonne, a drop of 20 yuan/tonne; Rizhao traders 5,280 yuan/tonne, a drop of 40 yuan/tonne; Zhangjiagang traders 5,300 yuan/tonne, a decline of 30 yuan/tonne; Guangzhou 5,220-5,230 yuan/tonne, increasing by 20 yuan/tonne, Xiamen 5,320 yuan/tonne, keeping flat against yesterday).

    Daily review on imported rapeseed oil: today, prices for imported rapeseed oil fall steadily, among which main prices in coastal areas stay at 6,390-6,590 yuan/tonne, with a fall of 20-30 yuan/ton over last Friday (Basis: Maple in Fangchenggang, Guangxi reaches 1,801-100; Yinxiang in Xiamen, Fujian stops to report; Shenheng in Dongguan, Guangdong 1,801-200 yuan/ton). Stocks of rapeseed meal in South China last week rose to 54,000 tonnes week on week by 7%, besides about 54,900 tonnes of rapeseed oil reserved were said to be auctioned on January 19th, both resulting in a volatile session in rapeseed oil. Nevertheless, as stockpiles of small packing oils now go out in an all-round way before Chinese Lunar New Year celebrations, there is still hope for a rally in rapeseed oil though price upside is not likely to be great.

    Daily review on corn: today, domestic corn prices vibrate with upward tendency. Corn purchasing prices in Shandong deep processors mostly stay at 1,760-1,870 yuan/tonne, some up 10-20 yuan/tonne from last Friday, by contrast, purchasing prices in the northeast stand at 1,630-1,720 yuan/tonne. While the prices offered at Jinzhou port, Liaoning are revised to 1,835-1,845 yuan/tonne, up 5-10 yuan/tonne from last Saturday, but down 10 yuan/tonne from yesterday. Drying new corn of Liaoning and Jilin (moisture≤15%, volume weight 690-700 g/L) at Bayuquan port prices at 1,820-1,830 yuan/tonne, up 20 yuan/tonne from last Saturday, but the lowest price is a tad lower than yesterday. New corn spot prices at Shekou port, Guangdong are raised to 2,000 yuan/tonne, a rise of 40 yuan/tonne over last Friday. At present, farmers in corn belt are still reluctant to sell and traders prefer to hoard goods in the mindset of higher corn prices, while on the other side, downstream enterprises are probably to stock up when lunar new year is approaching, given that, domestic corn prices are probably to go high in a short term. While notably, China Grain Reserves is projected to conduct an auction on January 9th in Shanxi Province for 26,719 tonnes of corn produced in 2014, besides, market rumors goes that stockpiles in facilities directly affiliated to northeastern warehouses are going to be suspended and that the reserve grains will be sold out and added to the market supply. Moreover, precaution should be taken to cope with any supply pressure from mass repayment of loans and cash. 

    Daily review on sorghum and barley: today, prices for imported sorghum go steady which settle at 1,870-1,980 yuan/tonne at main ports (Tianjin offers 1,980 yuan/tonne; Nantong 1,880 yuan/tonne; Shanghai 1,880-1,890 yuan/tonne; Guangdong 1,870-1,880 yuan/tonne. Meantime prices for most imported barley keep stable which stay at 1,720-1,810 yuan/tonne at main ports (Tianjin has not reported yet; Nantong 1,800-1,810 yuan/tonne; Shekou port in Guangdong 1,720-1,770 yuan/tonnes). It’s said that Chinese buyers are proactive in sorghum purchasing, supporting its prices in the outer, moreover, high CNF prices in US stay in recent days give substantial support to its market. According to customs, imports of sorghum in November stay in a low level followed by decreasing imports of barley, where sorghum in North China and East China are tightened in stocks, additionally, sorghum arrivals are projected to be few before Spring Festival, in this case, the market is to be buoyed by such bullish fundamentals. Overall, grains will remain strong in a short term, nevertheless, port delivery of sorghum in East China and South China becomes poor and with rumors about corn policies going around in market, marketer' bullish sentiments are somewhat affected, specifically, corn prices at southern and northern ports today pare gains. Attentions should be paid to the trend in market for sorghum at ports may be weighed down provided if corn prices continue to edge lower.