Daily review on soybean meal: US soybeans ended lower last night on CBOT, however, soybean meal rises marginally today on DCE, where most domestic soybean meal spots remain stable with slight fluctuations, yet lower forward basis may attract some deals. Coastal soybean meal prices range from 2,850 to 2,920 yuan/tonne, a reduction of 10-20 yuan/tonne in part as compared to yesterday (Tianjin prices 2,920 yuan/tonne, Shandong 2,850-2,860 yuan/tonne, Jiangsu 2,840-2,850 yuan/tonne, Dongguan 2,850-2,860 yuan/tonne, Guangxi 2,840-2,860 yuan/tonne). US soybean futures are now buoyed as soybean output may take a hit by parched Argentina with market concerns. In addition, soybean meal amounts to implement in contracts keep high amid lower soybean oil prices and processors’ support for meal. Whereas, price upside of soybean meal may be capped in the context that ending stocks of US soybeans may be raised in tonight’s report released by US Department of Agriculture (USDA), therefore under such bearish situations, soybean meal for a short time may vibrate in a tight range tracking futures. In real terms, soybean meal prices later are probably not satisfying provided if soybeans are hefty in market with good weather in South America during Chinese holidays. Buyers for the moment can stand by and wait for reports tonight to guide the way. 

    Daily review on imported rapeseed meal: today, prices for imported rapeseed meal are basically stable, among which prices in coastal areas stand at 2,250-2,300 yuan/tonne (Guangxi offers 2,300 yuan/tonne; Guangdong 2,290 yuan/tonne; Fujian 2,300 yuan/tonne). Rapeseed meal stocks falls based on slashed operating rate for machine overhaul in some oil mills when holidays are approaching, which consequently eases stock pressure. Nevertheless, future upside for rapeseed meal is limited on account of poor demand, relatively high soybean crush rate and accumulating soybean meal stocks for its alternative , in this case, rapeseed meal overall may in a weak state for the time being.Operating rate falls significantly for some oil mills start machine overhaul in consideration of coming holidays, besides pressure on rapeseed meal is somewhat eased by falling stocks. 

    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 8th, about 35,573 tonnes of fish have been caught in southern Peru in A season of year 2018, accounting for 6.65% of total quota--530,000 tonnes--this season, among which 499,427 tonnes remain unfinished. Port stocks: Hangpu has 23,000 tonnes, Fuzhou 33,000 tonnes, Shanghai 17,000 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. Market trades overall are poor as holidays are at hand, yet fishmeal in domestic market in the run-up to holidays will remain steady for the prices offered are supported by stable fishmeal performance in the outer. 

    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: US soybeans and soybean oil again plunged last night, hit by Argentine rains in the days ahead in weather forecast and probably increased US soybean carry-over stocks for year 2017/18 in USDA monthly reports tonight, according to an analyst. On the other side, US soybean meal went strong further as news went around that truck drivers in Argentina, the biggest soybean meal supplier worldwide, went on strike. Accordingly, Dalian oils today pare gains coming off low opens, where domestic soybean oil and palm oil stocks come down following futures, yet turnover is not much. Futures today go down after a yesterday’s short-lived rally and notably demand for oils in bulk is not much as stockpiles for packing oils come to an end, besides, palm oil keeps accumulating in stocks, soybean stock consumption is slowed down impressively based on sluggish shipments but high operating rate and good crush margins. In this way, oils in market fail to rebound all the way and are likely to remain weaker in the run-up to holidays amid overwhelming oil glut, yet such trend may remain even when holidays end provided if weather patter in South America is good in the days ahead, therefore, buyers may as well wait for tonight’s reports for guidance.  

    Today's soybean oil: main prices for GB grade-one soybean oil in coastal areas stay at 5,460-5,580 yuan/tonne, down 20-40 yuan/tonne (Tianjin traders offer 5,510-5,520 yuan/tonne, Rizhao traders 5,550 yuan/tonne, Zhangjiagang traders 5,580 yuan/tonne, Guangzhou traders 5,460 yuan/tonne). 

    Today's palm oil: 24-degree palm oil prices in coastal areas range from 5,030 to 5,150 yuan/tonne, some falling 10-20 yuan/tonne (Tianjin traders offer 5,130-5,140 yuan/tonne, down 20 yuan/tonne; Rizhao traders stop to report; Zhangjiagang traders 5,150 yuan/tonne, keeping flat; Guangzhou traders 5,030-5,050 yuan/tonne; Xiamen traders 5,120 yuan/tonne, down 10 yuan/tonne). 

    Daily review on imported rapeseed oil: today, prices for imported rapeseed oil drop steadily, among which main prices in coastal areas stay at 6,160-6,370 yuan/tonne, some down 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. And as a build up in inventory draws to an end, impressively poor market demand will result in difficulties in oil stock consumption, therefore shorter term, rapeseed oil may vibrate weaker with futures. 

    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, while some down 6-10 yuan/tonne from 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 1,840 yuan/tonne, up 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 1,820-1,830 yuan/tonne, being flat from yesterday. Corn spot prices at Shekou port, Guangdong are raised to1,950 yuan/tonne before holidays, and 1,970 yuan/tonne after holidays. Selling and buying turn light in corn belt and logistics services nationwide stop one by one as Chinese holidays are at hand, resulting in downsized shipments and gradually dented goods trading in market when stockpiling in downstream almost comes to an end. Generally speaking, corn prices in a short term may probably be stable and vibrate in a tight range instead of suffering from big ups and downs, besides corn performance may go weaker after holidays based on ample stocks and sluggish demand, but it’s worth noticing that price downside will also be capped as market players are still bullish about corn performance in consideration of limited surplus in corn belt, yet attention should still 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 rise steadily which settle at 1,890 yuan/tonne at main ports (Tianjin, Nantong and Shanghai stop to report; Guangdong 1,890 yuan/tonne, up 10 yuan/tonne). At the same time, prices for imported barley increase steadily, mostly offered 1,810-1,850 yuan/tonne at main ports (Tianjin has not reported yet; Nantong offers 1,850 yuan/tonne, rising by 20 yuan/tonne; Shekou port in Guangdong 1,810 yuan/tonne, up 30 yuan/tonne). Grains market in these days are fueled by rising corn prices at ports. Additionally, 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 hope for higher prices in case 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 may go upward for the time being. Market players can wait for new information for guidance.