Daily review on soybean meal: Chicago soybeans last night closed unchanged, accordingly, Dalian soybean meal edges lower today, of which soybean meal spots fall 10-20 yuan/tonne, yet turnover is not much. A round of technical decline comes after US soybeans pushing pass 1,000 cents mark, furthermore, soybean meal is now in a dilemma of burdensome and large stocks on one hand due to high operating rate, but poor turnover on the other hand for stockpiles are less in the downstream in the run-up to holidays this year contrasting with former years, given that soybean meal spots are weighed down under such considerable pressure. While, volume in contracts to implement remains large amid processors’ support in view of sluggish soybean oil, which limits its price downside, in that price upside of soybean meal is much related to stockpiles ahead of holidays. Therefore buyers can stand by for the moment about spots buying and may as well to buy in batches when basis is not more than 50 yuan/tonne.

    Daily review on imported rapeseed meal: today, prices for imported rapeseed meal are basically stable, among which prices in coastal areas stand at 2,230-2,280 yuan/tonne (Guangxi offers 2,250 yuan/tonne; Guangdong 2,250 yuan/tonne; Fujian stops to report). Bearish fundamentals of rapeseed meal are now difficult to change as demand for aquatic feedstuff becomes less and less with gradually frigid temperatures, while to make matters worse, soybean meal stocks keep growing in the wake of impressive soybean crush, therefore under such circumstances, rapeseed meal in a short term may go weaker and lower. 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 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 21,000 tonnes, Fuzhou 31,000 tonnes, Shanghai 14,000 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. Fishmeal holders now have strong preference to hold onto goods in the hope of higher prices since a a new-round fishing is close to the end in Peru the time fishmeal supply at home and abroad is still tightened, as a result, fishmeal in market is likely to be stable.

    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 imported soybeans for distribution remain unquoted at Qingdao and Rizhao ports. And in expectations, that will continue in the run-up to Lunar New Year. Imported soybeans for distribution are markedly restricted in food-grade products circulation for port inspections, and in consideration of ample domestic soybean supply and large soybean arrivals, market players are not optimistic about its performance later. Attention should still be paid to port inspections and soybean arrivals.

    Daily review on oils: CBOT soybeans overnight reached 1,000 cents when concerns over Argentine dryness continued, but latter profit taking came along with main contracts ending unchanged by value, meantime, soybean meal and oil pared gains. Accordingly, Dalian oils today pick up in volatile sessions, of which domestic soybean oil and palm oil in part price up, and turnover overall is still not much though lower prices may attract some deals. US soybeans in a short term will remain strong factored in persisting weather concerns and profit taking to close a position, by contrast, soybean oil has shriveled to 1.51 Mln tonnes in stocks on the back of processors’ support but general demand on lower prices. However, soybean weekly crush remains at an exceedingly high level of 1.95 Mln tonnes and palm oil now totals 0.65 Mln tonnes amid oil glut. Overall, oil spots are probably limited to rebound and are subject to vibrations frequently tracking futures, thereby buyers are not recommended to chasing high.

    Today's soybean oil: main prices for GB grade-one soybean oil in coastal areas stay at 5,630-5,750 yuan/tonnes, some growing by 10-30 yuan/tonne (Tianjin traders offer 5,670-5,680 yuan/tonne, Rizhao traders 5,640 yuan/tonne, Zhangjiagang traders 5,750 yuan/tonne, Guangzhou traders 5,630-5,640 yuan/tonne).

    Today's palm oil: 24-degree palm oil prices in coastal areas are mostly between 5,140-5,270 yuan/tonne, some increasing by 10-30 yuan/tonne (Tianjin traders offer 5,240-5,250 yuan/tonne, a rise of 10 yuan/tonne; Rizhao traders 5,270 yuan/tonne, keeping flat; Zhangjiagang traders offer 5,300 yuan/tonne, a rise of 30 yuan/tonne; Guangzhou 5,140-5,160 yuan/tonne; Xiamen 5,200-5,210 yuan/tonne, a rise of 10 yuan/tonne).

    Daily review on corn: today, prices for most domestic corn remain stable, some going strong. Corn purchasing prices in Shandong deep processors mostly stay at 1,840-1,960 yuan/tonne, some going strong, by contrast, purchasing prices in the northeast stand at 1,640-1,740 yuan/tonne, keeping flat. While the purchasing prices offered at Jinzhou port, Liaoning keep flat at 1,790-1,815 yuan/tonne, keeping flat. 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, up 10 yuan/tonne from yesterday. Corn prices at Shekou port, Guangdong are 1,950 yuan/tonne with transaction prices stabilizing at 1,920 yuan/tonne, basically flat from yesterday. Transportation in southern Henan and Huanghuai region has recently been disrupted by heavy snowfalls there, at the same time, grain selling progress in colt belt this year is faster than the same period last year by 5 or 8 percentage points. Some businesses are still in need of grains to make replenishment amid less surplus grain left in corn belt, additionally, as Spring Festival is coming with not more than 20 days left, corn buying prices are seen rising in some businesses. Corn auction goes forward for the time being, which uplifts market bearish sentiments, accordingly, some traders in northeast now speed up shipments upon higher prices though most large businesses almost finish building up their inventories. That price upside of corn is likely to be capped with poorer and poorer demand, but overall corn prices may go up in a high level and vibrate in a tight range.  On this note, corn auction in Shanxi on January 26th is shown as follows: 41,262 tonnes available to be sold, real volume 14,926 tonnes, turnover rate around 36%, opening price at 1830.9 yuan/tonne, the average transaction price at 1831.2 yuan/tonne, indeed, turnover is light.

    Daily review on sorghum and barley: today, prices for imported sorghum go steady which settle at 1,880-1,960 yuan/tonne at main ports (Tianjin offers 1,960 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/tonne). 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 in these days are seen 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. Market players can wait for new information for guidance.