Daily review on soybean meal: US soybeans in Chicago Board of Trade continued to go up last night, while soybean meal in Dalian Commodity Exchange today comes down, of which domestic soybean meal spots vibrate in a steady pace with futures today, yet turnover is not much. Coastal soybean meal prices range from 2,850 to 2,920 yuan/tonne, a fluctuation of 10-20 yuan/tonne compared with yesterday (Tianjin prices 2,920 yuan/tonne, Shandong 2,910-2,920 yuan/tonne, Jiangsu 2,840-2,890 yuan/tonne, Dongguan 2,860-2,870 yuan/tonne, Guangxi 2,850-2,870 yuan/tonne). US soybeans climb to a six-week high on the back of a drought threat to soybean output in Argentina. Price downside of soybean meal is capped as volume in contracts to implement remains large amid support from oil mills, but on the other hand, there isn’t much buying interest this year in the run-up to holidays in the downstream when compared with last year’s and with good soybean crush margins and high operating rate, soybean crush rises to 1.9 Mln tonnes week on week by 2%, putting a cap on spots rally. On the whole, domestic soybean meal spots are probably afflicted to slight vibrations tracking futures. Buyers who have a lower inventory can make proper replenishment by bargain hunting, but may as well keep an eye on when chasing high.

    Daily review on imported rapeseed meal: today, prices for imported rapeseed meal rise steadily, among which prices in coastal areas stand at 2,240-2,300 yuan/tonne, some rising 10-20 yuan/tonne (Guangxi offers 2,270 yuan/tonne; Guangdong 2,280 yuan/tonne, up 10 yuan/tonne; Fujian 2,300 yuan/tonne, up 20 yuan/tonne). Rapeseed meal keeps higher in stocks than figures in former years amid its poor performance in market consumption, while on the other side, soybean meal stocks keep growing in the wake of impressive soybean crush, and under such bearish circumstances, rapeseed meal in a short term may go weaker and lower for lack of vitality, therefore buyers may as well take a hand-to-mouth purchasing strategy for the moment.

    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 21st, about 512,783 tonnes of fish have been caught in northern and central Peru in B season over 17 years, accounting for 34.41% of the total volume; fishing quota for this season is 1.49 Mln tonnes, among which 977,217 tonnes remain unfinished. Port stocks: Hangpu has 19,000 tonnes, Fuzhou 32,000 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 insiders are still waiting for Peruvian later fishing situation, and some fishmeal holders are seen easing their previous strong sentiment to hold out for higher prices, in this case, fishmeal in a short term may go steady with downward tendency in market.

    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 yesterday ended high tracking former steps, 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: soybean meal futures showed big gains for soybean yield probably took a hit in patched Argentina, and soybean futures were also fueled with US soybeans rising for a sixth straight session, but notably, US soybean oil continued to pare gains by eased arbitrary of buying soybean oil and selling meal. Accordingly, Dalian oils today open high but end low in volatile sessions, among which most domestic soybean oil goes up and palm oil falls in part, indeed, lower prices may attract some deals, but turnover overall is not much. Affected by continuous drought, Argentine soybean production has reduced to 5,200-5,400 yuan/tonne, helping US soybean push pass 980 cents mark to a six-week high. Soybean oil continues to price up as demand upon lower prices is still strong in the run-up to holidays, meantime, soybean weekly crush remains at an exceedingly high level of 1.95 Mln tonnes with considerable soybean supply at ports and soybean oil keeps higher than former years in stocks irrespective of its stock falling to 1.52 Mln tonnes. In real terms, supply pressure of oils is still considerable factored in climbing stocks of palm oil climbing--around 0.64 Mln tonnes--and poor export in Malaysia. Generally, market for oils later is not so bright and oil spots are not likely to rise by leaps and bounds, thus buyers can make proper replenishment upon bargain hunting instead of chasing high.

    Today's soybean oil: main prices for GB grade-one soybean oil in coastal areas stay at 5,600-5,700 yuan/tonnes, increasing by 10-40 yuan/tonne, (Tianjin traders offer 5,640-5,650 yuan/tonne, Rizhao traders 5,620 yuan/tonne, Zhangjiagang traders 5,700 yuan/tonne, Guangzhou traders 5,600-5,620 yuan/tonne).

    Today's palm oil: 24-degree palm oil prices in coastal areas are mostly between 5,080 and 5,230 yuan/tonne, part of which decline 10 yuan/tonne (Tianjin traders offer 5,190-5,200 yuan/tonne, a drop of 10 yuan/tonne; Rizhao traders 5,230 yuan/tonne, down 10 yuan/tonne; Zhangjiagang traders 5,230 yuan/tonne, keeping flat; Guangzhou 5,080 yuan/tonne; Xiamen 5,170 yuan/tonne, keeping flat).

Daily review on imported rapeseed oil: today, prices for imported rapeseed oil rise steadily, among which prices in coastal areas are 6,260-6,480 yuan/tonne, some increasing by 20-40 yuan/tonne (Basis: Maple in Fangchenggang, Guangxi offers 1805-80; Yinxiang in Xiamen, Fujian stops to report; Fuzhiyuan in Dongguan, Guangdong offers 1805-180). Stocks of soybean oil further edge lower, but still higher than the ones in former years. While notably, price upside of rapeseed oil is probably capped in a near term in consideration of expanded price gap between soybean oil and rapeseed oil to curb its demand, unsettled oil glut when a build up in small-packing stockpiles draws to a end. In short, rapeseed oil will still be in volatile sessions tracking futures.

    Daily review on corn: today, prices for most domestic corn remain stable, some fluctuating in a tight range. Corn purchasing prices in Shandong deep processors mostly stay at 1,840-1,960 yuan/tonne, some up 10-20 yuan/tonne from yesterday, by contrast, purchasing prices in the northeast keep at 1,640-1,740 yuan/tonne. While the purchasing prices offered at Jinzhou port, Liaoning stand at 1,790-1,810 yuan/tonne, 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 1,790-1,810 yuan/tonne, keeping flat over yesterday. New corn spot prices at Shekou port, Guangdong stay at 1,920 yuan/tonne, basically flat over yesterday. China Grain Reserves Corporation this week projects to launch the 4th, 5th and 6th corn auctions in Shanxi, Inner Mongolia and Jilin province, therefore with such risks in policy, some traders now speed up shipments upon higher prices, though northern corn prices edge lower in a steady pace. 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 onto goods in hope for higher prices seeing supply tension of high-quality corn in market and corn demand in the downstream remains robust, as a result, corn prices are still fueled. A large-scale rainfall in Hebei and Shandong provinces in these two days has chopped corn flows and supplying, in that some processors again revise corn purchasing prices upward. On the whole, corn prices ahead of Chinese Lunar New Year will keep high amid volatility and not to fall a lot, yet, attention should be paid to corn auction this week in northeastern areas.

    Daily review on sorghum and barley: today, prices for imported sorghum drop steadily which settle at 1,880-1,960 yuan/tonne at main ports (Tianjin offers 1,960 yuan/tonne, down 10 yuan/tonne; Nantong 1,880-1,890 yuan/tonne, keeping flat; 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 shipment--sorghum prices at Tianjin ports today thereby are a tad lower--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. Given that, 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.