Daily review on soybean meal: US soybeans continued to come down last night, the same trend going to soybean meal today in DCE. Domestic soybean meal spots are weighed down with futures, yet turnover is still not much. Soybean meal prices in coastal areas range from 2,830 to 2,890 yuan/tonne, a drop of 10-30 yuan/tonne against yesterday (Tianjin prices 2,890 yuan/tonne, Shandong 2,880-2,900 yuan/tonne, Jiangsu 2,825-2,850 yuan/tonne, Dongguan 2,830-2,840 yuan/tonne, Guangxi 2,850-2,870 yuan/tonne). US soybeans are still pressured down as market estimates that US soybean ending stocks and Brazilian soybean yield will probably be increased in tonight’s supply/demand reports released by U.S. Department of Agriculture (USDA), meanwhile turnover of soybean meal in recent days is unsatisfactory as buyers are not proactive in the bearish market with stocking-up time being further put off till January 20th or so, but on the other side, soybean meal stocks keep high with assured soybean supply, profitable crush margins and lifted operating rate this week, therefore with all factors taken into account, soybean meal spots for a short term will remain week in market overall. However, with quite a lot contracts to implement in oil mills and impacts of GMO certificates under way, soybean processing may be somehow affected when many oil mills in Rizhao, Shandong fail to unload soybeans on time for GMO certificates problems. Given that, soybean meal demonstrates great resilience today, thus putting a cap on price decline of domestic soybean meal and getting the chance to rebound provided if stockpiles in the run-up to holidays are started. Buyers for the moment can take a hand-to-mouth purchasing and make replenishment on a small scale upon bargain hunting if out of stock.

    Daily review on imported rapeseed meal: today, prices for imported rapeseed meal go down, among which prices in coastal areas stand at 2,240-2,300 yuan/tonne, some falling 10-20 yuan/tonne over yesterday (Guangxi offers 2,240 yuan/tonne, with a decline of 20 yuan/tonne; Guangdong 2,240 yuan/tonne, down 10 yuan/tonne; Fujian 2,260 yuan/tonne, falling 40 yuan/tonne). Pressure on rapeseed meal mainly derives from off-season trends and overflowing stockpiles in South China, besides rapeseed meal is not supported in market as soybean meal stocks continue to accumulate with high soybean crush. In words, rapeseed meal in near term may continue to be weak, therefore buyers for the moment can stay sidelines or take a hand-to-mouth purchasing strategy.

    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. Port stocks: Hangpu has 19,000 tonnes, Fuzhou 32,000 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. Shorter term, fishmeal in market will remain strong in view of its stable performance in the outer and falling stocks.

    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. Soybeans in the outer last night ended low as analysts speculated that U.S. Department of Agriculture Friday would be 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 at ports, market players are now not optimistic about its performance later. Still, attention should paid to port inspections and soybean arrivals.

    Daily review on oils: given that investors rushed to balance positions the day before crop data release by USDAUS, beans in Thursday’s trading session fell for a fourth straight session to a new low, besides soybean meal and oil continued to end lower. Accordingly, Dalian oils today continue to pare gains where domestic soybean oil and palm oil spots go down with futures, yet turnover is not much. An agency predicts that soybean yield in Brazil in the new crop year may welcome hefty gains with volume reaching 114.1 Mln tonnes, and on the very note, US soybeans fall to a four-mouth low as the export are overwhelmingly dwarfed by that in Brazil, which in turn gives a downward pressure on oil market. While on the other side, delayed stockpiles for packing oil, general demand upon lower prices and unavailable soybean supply in many mills base in Rizhao, Shandong, price upside of oils may somewhat be capped. In general, oil in a near term will be subject to vibrations, therefore, buyers can make proper replenishment when price decline goes steady. 

    Today's soybean oil: main prices for GB grade one soybean oil in coastal areas stay at 5,600-5,700 yuan/tonnes, decreasing by 30-70 yuan/tonne, (Tianjin traders offer 5,660-5,670 yuan/tonne, Rizhao traders 5,620 yuan/tonne, Zhangjiagang traders 5,700 yuan/tonne, Guangzhou traders 5,600 yuan/tonne).

    Today's palm oil: 24-degree palm oil prices in coastal areas are mostly between 5,150 and 5,280 yuan/tonne, a decline of 20-50 yuan/tonne (Tianjin traders offer 5,270-5,280 yuan/tonne, a drop of 30 yuan/tonne; Rizhao traders 5,270 yuan/tonne, down 20 yuan/tonne; Zhangjiagang traders offer 5,240 yuan/tonne, a decline of 40 yuan/tonne; Guangzhou 5,150 yuan/tonne, down 50 yuan/tonne; Xiamen traders have not reported).

    Daily review on imported rapeseed oil: today, prices for imported rapeseed oil drop steadily, among which main prices in coastal areas stay at 6,300-6,500 yuan/tonne, some down 20-50 yuan/tonne (Basis: Maple in Fangchenggang, Guangxi reaches 1,805-110; Yinxiang in Xiamen, Fujian stops to report; Shenheng in Dongguan, Guangdong 1,805-200). Full turnover rate of the rapeseed oil auctioned today demonstrates a promising demand for rapeseed oil in market. Yet demand for rapeseed oil is not to be great in consideration of large soybean oil and palm oil in stocks, further expanded price gap between soybean oil and palm oil. In short, rapeseed oil in near term will still be in volatile sessions.

    Daily review on corn: today, domestic corn prices continue to go up in a steady pace. Corn purchasing prices in Shandong deep processors mostly stay at 1,780-1,900 yuan/tonne, some up 10-30 yuan/tonne from yesterday, by contrast, purchasing prices in the northeast keep high at 1,630-1,720 yuan/tonne, with higher prices keeping firm. While the purchasing prices offered at Jinzhou port, Liaoning stand at 1,820-1,840 yuan/tonne, growing by 20 yuan/tonne from yesterday. Drying new corn of Liaoning and Jilin (moisture≤15%, volume weight 690-700 g/L) at Bayuquan port prices at 1,800-1,810 yuan/tonne. New corn spot prices at Shekou port, Guangdong stay at 1,950-1,970 yuan/tonne, being flat over yesterday. Generally, turnover volume and average price of reserved corn auctioned in Shanxi today fall lower than those on 9th. Meanwhile, rumor goes that northeastern corn will be put on the market by auction in the near future with companies’ decision on auction volume, in detail, 1.5 Mln tonnes from Jilin province and roughly 3-4 Mln tonnes from provinces in the northeast, therefore attention should be paid to related policies. However, in consideration of corn yield cut and tightened supply of high-quality corn this year, farmers hoarding goods in corn belt and traders for the moment are still reluctant to sell in a strong mindset. While on the other hand, businesses now are proactive in corn purchasing ahead of Lunar New Year, therefore corn prices for a near term will remain strong overall.

    Daily review on sorghum and barley: today, prices for imported sorghum go steady which settle at 1,870-1,970 yuan/tonne at main ports (Tianjin offers 1,970 yuan/tonne; Nantong 1,880 yuan/tonne; Shanghai 1,880-1,890 yuan/tonne; Guangdong 1,870-1,880 yuan/tonne, all keeping flat over yesterday. 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.