Daily review on soybean meal: futures continue to pick up, yet soybean meal spots today are a tad lower, indeed, turnover is not much. Coastal soybean meal prices range from 2,830 to 2,920 yuan/tonne, a decline of 10-20 yuan/tonne over yesterday (Tianjin prices 2,920 yuan/tonne, Shandong 2,900-2,920 yuan/tonne, Jiangsu 2,830-2,860 yuan/tonne, Dongguan 2,840-2,860 yuan/tonne, Guangxi 2,830-2,860 yuan/tonne). Soybean meal is still pressured down in light of considerable stock pressure amid good crush margins and high operating rate in oil mills but light turnover when an intensive stockpiling has not yet launched, generally speaking, soybean meal spots in a near term lack the vitality to rebound and may run weak for the time being. US soybeans now go strong resulting from a concern about weather pattern in Argentine soybean growing areas. Soybean meal on one hand is fueled by oil mills and is limited to fall as volume in contracts to implement remains large and stockpiles in the run-up to holidays are still desirable with an small rally in expectations. While on the other hand, bumper harvest of soybeans in Brazil is about to come as weather there is good, by striking contrast, exports of US soybeans this year are seen lower than former years, thus factored in all, US soybeans and domestic soybean meal are not likely to rebound, if possible, price upside will not be great. Buyers who have a lower inventory level can make proper replenishment in batches upon lower prices, but may as well arrange the position and keep an eye on when chasing high.

    Daily review on imported rapeseed meal: today, prices for imported rapeseed meal pick up, among which prices in coastal areas stand at 2,230-2,290 yuan/tonne, some rising 10-20 yuan/tonne (Guangxi offers 2,250 yuan/tonne; Guangdong 2,250 yuan/tonne; Fujian 2,290 yuan/tonne, up 20 yuan/tonne). More and more oil mills in South China are faced with swelling rapeseed meal stocks amid its poor performance in market consumption, while on the other side, soybean meal stocks keep growing in the wake of impressive soybean crush, therefore under such bearish circumstances, rapeseed meal in a short term may go weaker and lower for lack of vitality. Buyers may as well take a hand-to-mouth purchasing strategy.

    Daily review on fishmeal: today, prices for imported fishmeal keep firm, yet prices are negotiable upon transaction 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 17th, about 352,630 tonnes of fish have been caught in northern Peru in B season over 17 years, accounting for 23.67% of the total volume; fishing quota for this season is 1.49 Mln tonnes, among which 113,7370 tonnes remain unfinished. Port stocks: Hangpu has 19,000 tonnes, Fuzhou 31,000 tonnes, Shanghai 13,000 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. Market players at home and abroad now care more about Peru's fishing in February, therefore price volatility is limited.

    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. Though beans in the outer last night ended high following yesterday's track, imported soybeans for distribution are markedly restricted in food-grade products circulation, 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: US soybeans climbed to a forth straight trading session last night for market concerns about parched weather in Argentina, and soybean meal continued to pick up, while US soybean oil was seen falling further, hit by large US oil stocks, lower palm oil prices and eased arbitrary of buying soybean oil an selling soybean meal. Accordingly, Dalian oils today continue to pare gains, of which domestic soybean oil and palm oil spots are seen plunging with futures, yet turnover is not much. Continuous drought in Argentina may push soybean production this year down to below 50 Mln tonnes, while on the contrary, abundant rainfall in Brazil may usher a bumper harvest, under such circumstances, US soybeans may keep rangebound for a short time. Soybean oil has shriveled to around 1.55 Mln tonnes in stocks with 0.13 Mln tonnes less than the previous record-high level in wake of another round of scattered stockpiling ahead of holidays and an incentive for traders to store supplies in hope of selling at a higher price, but on the other hand, stockpiles of packing oils draw to a end, where palm oil reaches 0.63 Mln tonnes in stocks and soybean crush probably totals 1.85 Mln tonnes with large soybean arrivals and high operating rate. Oil spots in the short term will be subject to volatility and run in a lower level tracking futures amid oil glut. Buyers may as well make proper replenishment upon bargain hunting when price decline goes steady.

    Today's soybean oil: main prices for GB grade-one soybean oil in coastal areas stay at 5,570-5,650 yuan/tonne, falling 10-20 yuan/tonne (Tianjin traders offer 5,590-5,600 yuan/tonne, Rizhao traders 5,580 yuan/tonne, Zhangjiagang traders 5,650 yuan/tonne, Guangzhou traders 5,570-5,580 yuan/tonne).

    Today's palm oil: 24-degree palm oil prices in coastal areas are mostly between 5,070 and 5,200 yuan/tonne, part of which decline 20-30 yuan/tonne (Tianjin traders offer 5,190-5,200 yuan/tonne, a drop of 20 yuan/tonne; Rizhao traders 5,200 yuan/tonne, keep flat; Zhangjiagang traders 5,200 yuan/tonne, keeping flat; Guangzhou 5,070 yuan/tonne; Xiamen has not yet reported).

    Daily review on imported rapeseed oil: today, prices for imported rapeseed oil drop steadily, among which main prices in coastal areas stay at 6,270-6,420 yuan/tonne, some down 20-40 yuan/tonne (Basis: Maple in Fangchenggang, Guangxi reaches 1,805-80; Yinxiang in Xiamen, Fujian and Shenheng in Dongguan, Guangdong stop to report). Demand for rapeseed oil is capped in consideration of expanded price gap between soybean oil and rapeseed oil, continuous auctions of rapeseed oil reserved and considerable stocks pf soybean oil and palm oil. In short, rapeseed oil in near term will still be in volatile sessions and be weak in market tracking futures amid overall oil glut and one week left for stockpiling ahead of holidays.

    Daily review on corn: today, domestic corn prices remain stable with downward tendency, but the falling steps are significantly slowed down. Corn purchasing prices in Shandong deep processors mostly stay at 1,820-1,940 yuan/tonne, further down 10 yuan/tonne from yesterday, by contrast, purchasing prices in the northeast stand at 1,640-1,740 yuan/tonne, of which Cargill in Songyuan revised corn prices lower by 10 yuan/tonne against yesterday. While the purchasing prices offered at Jinzhou port, Liaoning are 1,800-1,820 yuan/tonne with a tad higher on highest price. 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 1,920-1,940 yuan/tonne, being flat over yesterday. Affected by sales of grain reserves in various regions, some northeastern traders are inclined to make more shipments when Lunar New Year is approaching. At the same time, corn arrivals for deep processors in North China are general with purchasing prices in these day decreasing by 30-50 yuan/tonne or so. While notably, grain-selling progress in the producing areas this year is obviously faster than that of the same period of last year with less surplus grain left, additionally, quite a lot of traders still strongly hold on to goods in hope for higher prices. Corn demand in the downstream remains robust when Lunar New Year is approaching, in this case, corn prices are not limited to fall, instead, will probably stay in high levels in volatile sessions. Yet, it’s said that China Grain Reserves Corporation projects to tender 35,000 tonnes of corn produced in year 2014 and 2015 in Jilin province on January 25th, and in market estimate, opening bid will be over 1,760 yuan/tonne for grade-two corn. 

    Daily review on sorghum and barley: today, prices for imported sorghum go steady which settle at 1,880-1,970 yuan/tonne at main ports (Tianjin offers 1,970 yuan/tonne; Nantong 1,880-1,890 yuan/tonne; Shanghai 1,890-1,900 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, additionally, there is an incentive for importers to make more shipments and for farmers to sell goods in consideration of enlarged policy risks in corn market. Whereas, import costs remain high as CNF in US prices up in recent days, and importers are inclined to higher prices for goods at hand in fear of unavailable supply of lower costs. Therefore, with long and short positions mixed, sorghum and barley at ports in the run-up to Spring Festival holidays are not likely to suffer from significant volatility, but to stabilize in a tight range.