Daily review on soybean meal: US soybean prices continued to slump last night, the same trend going to Dalian soybean meal today. Domestic soybean meal spots are steadily weighed down with futures today, yet turnover is still not much. Soybean meal prices in coastal areas range from 2,880 to 2,930 yuan/tonne, some falling 10-20 yuan/tonne against yesterday (Tianjin prices 2,940 yuan/tonne, Shandong 2,885-2,930 yuan/tonne, Jiangsu 2,885-2,880 yuan/tonne, Dongguan 2,880-2,890 yuan/tonne, Guangxi 2,900-2,920 yuan/tonne). US soybeans are weighed down as market speculates that U.S. Department of Agriculture is probable to increase US soybeans final stocks and Brazil soybean yield in January supply/demand report. Meantime, soybean meal prices are also under pressure when soybean meal total 0.87 Mln tonnes in stocks in terms of profitable soybean crush margins, exceedingly high operating rate in oil mills this week.  Nevertheless, 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 is not likely to fall a lot in a short term with some support from oil mills, but to run weak in volatile sessions tracking futures, in that buyers can take a hand-to-mouth purchasing strategy or stay sidelines. 

    Daily review on imported rapeseed meal: today, prices for imported rapeseed meal drop steadily, among which prices in coastal areas stand at 2,250-2,300 yuan/tonne, some decreasing by 10 yuan/tonne over yesterday (Guangxi offers 2,260 yuan/tonne; Guangdong 2,250 yuan/tonne with 10 yuan/tonne lower than yesterday; Fujian 2,300 yuan/tonne). Rapeseed meal stocks in South China keep growing and the figure is higher than that in corresponding period last year the time consumption of rapeseed meal becomes less and less, generally, soybean meal stocks pile up further in the wake of impressive soybean crush. Rapeseed meal is seen to go weak in a near time for lack of support, therefore, buyers can take a hand-to-mouth purchasing for the moment.

    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 8th, about 39,974 tonnes of fish have been caught in northern Peru in B season over 17 years, accounting for 2.68% of the total volume; fishing quota for this season is 1.49 Mln tonnes, among which 145,0026 tonnes remain unfinished. Port stocks: Hangpu has 21,000 tonnes, Fuzhou 33,000 tonnes, Shanghai 10,000 tonnes, Tianjin 1,000 tonnes, Dalian 4,000 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. Peru's central and northern parts start fishing this quarter, though, fishing is forbidden at some ports. In general, price fluctuations are somehow capped as market players at home and abroad now prefer to stay sidelines.

    Daily review on soybeans: due to a strict investigation by State Commodity Inspection Department, soybeans at ports fail to be quoted and delivered, of which prices of most imported and distributed soybeans are stopped to report at Qingdao and Rizhao ports. US soybeans are weighed down as analysts speculate that U.S. Department of Agriculture is probable to increase US soybeans final stocks and Brazil soybean yield in January supply/demand report. And in consideration of ample domestic soybean supply and large soybean arrivals, market players are not optimistic about its performance later. Still, attention should paid to port inspections and soybean arrivals.

    Daily review on oils: soybeans and soybean meal in Chicago Board of Trade overnight continued to slump, for comparison, Chicago soybean oil rebounded after decline due to active arbitrary of buying soybean oil and selling soybean meal. Correspondingly, Dalian oils continue to pick up where domestic soybean oil spots are mostly buoyant and palm oil picks up in part. Indeed, turnover upon lower prices goes well, but still not much for higher prices. On one hand, US soybeans are under considerable pressure by estimated bearish report as market expects that final stocks of US soybean are likely to reach 472 Mln tonnes bushels from 77 Mln tonnes bushels, while on the other hand, market concerns over drought in Argentina continue, thus with all factors taken into account, market in Chicago Board of Trade will keep volatile in a certain range.  Turnover in oil mills goes better as packing oil stockpiles are under way in China, with soybean oil falling to 1.61 Mln tonnes in stocks but palm oil rising to 0.64 Mln tonnes. Notably, it still takes time to consume such large stocks, thus oils market may keep buoyant before holidays amid frequent vibrations, in this case, buyers can maintain proper inventory and not chase high as recommended.

    Today's soybean oil: main prices for GB grade one soybean oil in coastal areas stay at 5,660-5,750 yuan/tonne, most rising 10-40 yuan/tonne (Tianjin traders offer 5,720-5,730 yuan/tonne, Rizhao traders 5,730 yuan/tonne, Zhangjiagang traders 5,750 yuan/tonne, Guangzhou traders 5,660-5,670 yuan/tonne).

    Today's palm oil: 24-degree palm oil prices in coastal areas are mostly between 5,240-5,330 yuan/tonne, some increasing by 10-20 yuan/tonne (Tianjin traders offer 5,320-5,330 yuan/tonne, a rise of 10 yuan/tonne; Rizhao traders 5,310 yuan/tonne, a rise of 20 yuan/tonne; Zhangjiagang traders offer 5,300 yuan/tonne, keeping flat; Guangzhou 5,240-5,250 yuan/tonne; Xiamen 5,300 yuan/tonne, keeping flat).

    Daily review on imported rapeseed oil: today, prices for imported rapeseed oil rise readily, among which main prices in coastal areas stay at 6,390-6,590 yuan/tonne, some up 10-30 yuan/tonne (Basis: Maple in Fangchenggang, Guangxi reaches 1,801-110; Yinxiang in Xiamen, Fujian stops to report; Shenheng in Dongguan, Guangdong 1,801-200). Rapeseed oil is now supported by an uptick in demand when it is the right time to stock up before Spring Festival holidays, however, price upside is not likely to be great in consideration of large soybean oil and palm oil in stocks, further expanded price gap between soybean oil and palm oil, limited demand for rapeseed oil and continuous auction for rapeseed oil reserved.

    Daily review on corn: today, domestic corn prices are subject to slight fluctuations with upward tendency. Corn purchasing prices in Shandong deep processors mostly stay at 1,780-1,870 yuan/tonne, some up 10-20 yuan/tonne from yesterday, by contrast, purchasing prices in the northeast stand at 1,630-1,720 yuan/tonne, of which drying corn in Cargill increases by 40 yuan/tonne. While the purchasing prices offered at Jinzhou port, Liaoning stand at 1,800-1,820 yuan/tonne, 10 yuan/tonne lower than the lowest price yesterday. Drying new corn of Liaoning and Jilin (moisture≤15%, volume weight 690-700 g/L) at Bayuquan port prices at 1,800-1,810 yuan/tonne, keeping flat over yesterday.New corn spot prices at Shekou port, Guangdong stay at 1,950-1,970 yuan/tonne, being basically flat over yesterday. Notably, a second-round auction may be projected on January 12th in Shanxi Province for 32,215 tonnes of corn produced in year 2014, 2015 and 2016, besides, corn prices at coastal ports pare gains in these days as stockpiles in facilities directly affiliated to northeastern warehouses are suspended in succession and market rumors go that the reserved grains are about to be sold. While this auction fails to uplift panic sentiment among market players for farmers in corn belt and traders hoarding goods are still reluctant to sell, 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.

    Daily review on sorghum and barley: today, prices for imported sorghum drop steadily which settle at 1,870-1,970 yuan/tonne at main ports (Tianjin offers 1,970 yuan/tonne, down 10 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). Sorghum is estimated to arrive at ports in East China and South China before Chinese Lunar New Year, which may therefore ease supply tension. In addition, sorghum at ports are under pressure as corn prices slide on account of strong sentiment of importers to make shipments and prevailing rumors about national policies recently, correspondingly, transaction prices at some ports in these days are also seen sliding. Whereas, 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. Overall, any price downsize of sorghum, if possible, will not be great, furthermore, sorghum may be fueled if corn at ports rebounds after falls, therefore, attention should still be paid to corn market before Spring Festival.