Today (on February 7th), trends for Chinese animal and plant protein, oils & oilseeds and grains are shown as follows: 

    Daily review on soybean meal: Chicago soybeans last night rebounded impressively, the same trend going to Dalian meal today, of which domestic soybean meal spots go up steadily tracking futures. Yet, lower spots prices and forward basis may attract some deals. Coastal soybean meal prices range from 2,840 to 2,920 yuan/tonne, a rise of 20-40 yuan/tonne against yesterday (Tianjin prices 2,920 yuan/tonne, Shandong 2,860-2,890 yuan/tonne, Jiangsu 2,840-2,870 yuan/tonne, Dongguan 2,850-2,860 yuan/tonne, Guangxi 2,840-2,860 yuan/tonne). Another round of dryness may come about in Argentina after the blessing rains later in this week, as a result, US soybeans hit a fresh high in the week. Soybean meal amounts to implement in contracts increase by 60% as compared to that in last year, while by contrast, coastal soybean meal is downsized to 0.88 Mln tonnes in stocks by 9% on the week, in this case, soybean meal ushers in a moderate rebound amid lower soybean oil prices and processors’ support for meal. Nevertheless, soybean meal will not rise by leaps and bounds as stocks consumption fail to be significant when stockpiling almost comes to an end, therefore soybean meal overall in market will run weaker and volatile tracking futures under such fundamental pressure. Buyers may as well maintain safe inventory instead of chasing high. 

    Daily review on imported rapeseed meal: today, prices for imported rapeseed meal pick up steadily, among which prices in coastal areas stay at 2,250-2,300 yuan/tonne with a rise of 20-30 yuan/tonne over yesterday (Guangxi offers 2,270 yuan/tonne, with a rise of 20 yuan/tonne; Guangdong 2,290 yuan/tonne, up 10 yuan/tonne; Fujian 2,300 yuan/tonne, growing by 20 yuan/tonne). Rapeseed meal stocks falls based on slashed operating rate when holidays are approaching, which consequently eases stock pressure. Additionally, a significant rally in US soybeans, buoyant futures in meal and coming dryness in Argentina give momentum for rapeseed meal rally. While, price upside is not to be impressive as processors are cautious about price raising when stockpiles almost come to an end, in this case, rapeseed meal overall may in a weak state for the time being. 

    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 February 5th, about 31,107 tonnes of fish have been caught in southern Peru in A season of year 2018, accounting for 5.81% of total quota--530,000 tonnes--this season, among which 503,893 tonnes remain unfinished. Port stocks: Hangpu has 23,000 tonnes, Fuzhou 33,000 tonnes, Shanghai 16,000 tonnes, Tianjin 1,000 tonnes, Dalian 3,000 tonnes, Fangchenggang 1,000 tonnes, and other ports 4,000 tonnes. Spots offers (FOB) in the outer remain stable, 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. Sales of fishmeal turn light as Spring Festivals holidays are around the corner both for buyers and sellers, therefore, fishmeal in market may remain stable in the run-up to holidays. 

    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. Improved weather pattern in South America poses downward pressure on US soybeans. 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 beans last night all went up for the reasons that another dryness may come after rains in Argentina later in this week and market is expected to see U.S. government review the tax credit policy for $ 1/gallon biodiesel, correspondingly, Dalian oils today pick up, where domestic soybean oil and palm oil spots go up tracking futures. Lower prices may attract some bulk oil buying, but oils on higher prices are not easy to be sold out. US soybean rebound again based on a new round of Argentine dryness later, consequently, oils in Dalian Commodity Exchange in the morning rise impressively, but later its gains are narrowed. Generally speaking, oils in market will run weaker and be hard to rise by leaps for market players generally argue that the blending allowance (about USD $ 1) will not be agreed, and for another thing, demand for oils in bulk is not much as stockpiles for packing oils come to an end, and moreover, palm oil keeps rising in stocks, soybean stocks are ample based on good crush margins and high operating rate though stocks now plunge to 1.48 Mln tonnes. All in all, oils in market are likely to pare gains after a short-lived rally, therefore, buyers had better keep an eye on when price upside is over 30 yuan. 

    Today's soybean oil: main prices for GB grade-one soybean oil in coastal areas stay at 5,500-5,580 yuan/tonne, up 20-80 yuan/tonne (Tianjin traders offer 5,550-5,560 yuan/tonne, Rizhao traders 5,580 yuan/tonne, Zhangjiagang traders 5,580 yuan/tonne, Guangzhou traders 5,500 yuan/tonne). 

    Today's palm oil: 24-degree palm oil prices in coastal areas are mostly between 5,040-5,150 yuan/tonne, increasing by 20-50 yuan/tonne (Tianjin traders offer 5,150-5,160 yuan/tonne, a rise of 20 yuan/tonne; Rizhao traders stop to report; Zhangjiagang traders offer 5,150 yuan/tonne, a rise of 50 yuan/tonne; Guangzhou 5,040-5,060 yuan/tonne; Xiamen 5,130 yuan/tonne, a rise of 30 yuan/tonne). 

    Daily review on imported rapeseed oil: today, prices for imported rapeseed oil pick up steadily, among which main prices in coastal areas stay at 6,200-6,420 yuan/tonne, some up 10-20 yuan/tonne (Basis: Maple in Fangchenggang, Guangxi offer 1805-60; Yinxiang in Xiamen, Fujian stops to report; Shenheng in Dongguan, Guangdong 1805-150). Supply pressure on soybean oil and palm oil still persist as about 0.21 Mln tonnes of rapeseed oil have been tendered publicly by State Reserves Bureau and another targeted 0.9 Mln tonnes will be put into market in the first half of year 2018. Shorter term, rapeseed oil may vibrate weaker with futures when a build up in inventory draws to an end. 

    Daily review on corn: today, prices for most domestic corn remain stable, some fluctuating in a tight range. Corn buying prices in Shandong deep processors mostly stay at 1,840-1,970 yuan/tonne, being flat as compared to yesterday, by contrast, purchasing prices in the northeast stand at 1,626-1,720 yuan/tonne, most being flat over yesterday. While purchasing prices offered at Jinzhou port, Liaoning stand at 1,820-1,830 yuan/tonne, being flat from yesterday. Drying new corn of Liaoning and Jilin (moisture ≤ 15%, volume weight 690-700 g/L) at Bayuquan port prices at 1,830 yuan/tonne, being flat from yesterday. Corn spot prices at Shekou port, Guangdong are pegged at 1,950 yuan/tonne, some at 1,940 yuan/tonne upon transaction, up 10 yuan/tonne from yesterday. Selling and buying turn light in corn belt and logistics nationwide go tightened as Chinese holidays are only seven days away, resulting in downsized shipments and significantly dented goods amounts at northern ports. Generally speaking, corn prices are fueled by corn replenishment demands in some southern small and medium-sized businesses, for instance, corn prices at southern ports in these days are seen rising marginally. However, further price upside of corn may be hard to achieve for most businesses have finished stockpiling. On the whole, corn spot prices probably remain stable and vibrate in a tight range around holidays and are not likely to suffer from big ups and downs, and attention should be paid to related policies about corn auction and the resulting market volatility afterwards. 

    Daily review on sorghum and barley: today, prices for imported sorghum go stable which settle at 1,880-1,930 yuan/tonne at main ports (Tianjin offers 1,930 yuan/tonne, being flat; Nantong and Shanghai stop to report; Guangdong 1,880 yuan/tonne, being flat). At the same time, prices for imported barley keep firm at 1,780-1,830 yuan/tonne at main ports (Tianjin has not reported yet; Nantong offers 1,820-1,830 yuan/tonne; Shekou port in Guangdong 1,780 yuan/tonne). A campaign of “anti-dumping and anti-subsidy” has recently been launched by China’s Ministry of Commerce for American sorghum, resulting in market worries about soaring import costs of American sorghum later. Importers are now inclined to hold onto goods in fear of unavailable supply of lower costs and logistics are suspended one by one on the other hand when holidays are around the corner, in that under such circumstances, sorghum remains stable for the time being. Market players can wait for new information for guidance.