Daily review on soybean meal: US soybeans on CBOT last night ended up, and accordingly, Dalian soybean meal futures today trend up after high opens with which domestic soybean meal spots price up. Indeed, lower prices may attract some deals. Soybean meal prices in coastal areas range from 3,030 to 3,100 yuan/tonne, a rise of 10-30 yuan/tonne against yesterday (Tianjin prices 3,100 yuan/tonne, Shandong 3,040-3,060 yuan/tonne, Jiangsu 3,030-3,060 yuan/tonne, Dongguan 3,050-3,060 yuan/tonne, Guangxi 3,030-3,060 yuan/tonne). The dry spell wreaking havoc on Argentina’s soybean crops sends US soybean futures to a new high. Generally speaking, soybean meal continues to price up, supported by declining stocks, less soybean arrivals and processors’ mindset to hold out higher prices, in detail, stocks are slashed to 0.71 Mln tonnes due to a general machine halt during the holidays and a quick delivery in recent days, meantime, only about 6.7 Mln tonnes of soybeans may arrive in March. US soybeans remain strong as weather speculation goes forward, therefore, soybean meal for the moment may price up further. Buyers may as well keep a safe inventory level upon bargain hunting.  

    Daily review on imported rapeseed meal: today, prices for imported rapeseed meal pick up steadily, among which prices in coastal areas stay at 2,400-2,500 yuan/tonne with a rise of 20-30 yuan/tonne over yesterday (Guangxi offers 2,440 yuan/tonne, with a rise of 40 yuan/tonne; Guangdong 2,500 yuan/tonne, up 30 yuan/tonne; Fujian 2,460 yuan/tonne). Weather speculation mainly contributes to the strong performance on CBOT, and significant decreases in Argentina's soybean production further boost rapeseed meal prices. But meal supply will gradually be abundant in the wake of resumed operation in oil mills, but sales still take time. By and large, pressure will be seen when soybeans from South America rush to the market later and monthly soybean arrivals in April and May reach 9 Mln tonnes. That will weigh down soybean meal prices, and correspondingly drag down rapeseed meal. Buyers are not recommended to chase high but to maintain a proper inventory level upon bargain hunting. 

    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 February 26th, about 79,457 tonnes of fish have been caught in southern Peru in A season of year 2018, accounting for 14.85% of total quota--535,000 tonnes--this season, among which 455,543 tonnes remain unfinished. Port stocks: Hangpu has 25,000 tonnes, Fuzhou 32,000 tonnes, Shanghai 19,000 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 $1,620 per tonne, USD $1,780 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. A shortage of high-quality fishmeal in domestic market helps fishmeal holders to hold out for higher prices, therefore fishmeal in a short term will be stable in market.  

    Daily review on soybeans: due to a strict investigation by State Commodity Inspection Department, imported soybeans for distribution at Qingdao and Rizhao ports remain unquoted. Imported soybeans for distribution are markedly restricted in food-grade products circulation for port inspections in consideration of ample domestic soybean supply. market players are not optimistic about its performance even when trades are allowed at ports. Attention should still be paid to port inspections and soybean arrivals. 

    Daily review on oils: the drought spell in Argentina’s producing areas brings down soybean yield further. On CBOT, US soybeans and soybean meal last night rose and ended up, while US soybean oils were dragged down by sluggish international crude oils and active arbitrary of buying soybean meal and selling soybean oil. By contrast, Dalian oils today go high despite low open, of which domestic soybean oil and palm oil spots price up following futures, and turnover is general though lower prices may continue to attract deals. Soybean production is probably reduced to 40 Mln tonnes if rains are not scattered in Argentine producing areas in the next two weeks. Generally speaking, US soybeans now remain strong in performance and oil prices may welcome a rally for a time for the reason that soybeans arrivals at ports are quite few in February and March and that machine start resumes in a slow pace even though soybean oil is reduced to 1.41 Mln tonnes in its stocks. But notably, price upside of oils may also be capped seeing increasing palm oil stocks and overall sufficient oil supplies, furthermore, oils in the medium or in the long term are not satisfactory in performance but will keep strong if weather speculation goes forward. Therefore, buyers had better keep a proper inventory level and not chase high.   

    Today's soybean oil: main prices for GB grade-one soybean oil in coastal areas stand at 5,650-5,790 yuan/tonne, most rising 10-40 yuan/tonne (Tianjin traders offer 5,750-5,760 yuan/tonne, Rizhao traders 5,790 yuan/tonne, Zhangjiagang traders 5,760 yuan/tonne, Guangzhou traders 5,650 yuan/tonne). 

    Today's palm oil: 24-degree palm oil prices in coastal areas are mostly between 5,250-5,330 yuan/tonne, increasing by 10-40 yuan/tonne (Tianjin traders offer 5,320-5,330 yuan/tonne, a rise of 10 yuan/tonne; Zhangjiagang traders offer 5,320 yuan/tonne, a rise of 40 yuan/tonne; Guangzhou traders 5,250 yuan/tonne; Xiamen 5,300 yuan/tonne, a rise of 30 yuan/tonne; Rizhao stops to report). 

    Daily review on imported rapeseed oil: today, prices for imported rapeseed oil are basically steady, among which prices in coastal areas are 6,250-6,460 yuan/tonne ( Great Ocean in Fangchenggang, Guangxi offers 6,330 yuan/tonne; Chinatex in Zhangzhou, Fujian offers 1,805-120 for basis in March; Fuzhiyuan in Dongguan, Guangdong offers 6,350 yuan/tonne for GB grade-four rapeseed oil). Rapeseed oil for a short term probably goes strong for Argentine drought becomes severer and server. Yet, domestic demand comes down significant after Chinese holidays for rapeseed oil is mainly consumed by end users before holidays. Additionally, rapeseed oil auction by State Reserves Bureau is now put into the market amid low operating rate and its counterparts--soybean oil and palm oil boast higher inventory levels than figures in the same period of former years. Therefore with bearish factors taken into consideration, rapeseed oil may vibrate time and again and fail to rebound a lot. 

    Daily review on corn: today, domestic corn prices up steadily and slightly. Corn buying prices in Shandong deep processors mostly stay at 1,890-1,990 yuan/tonne, some revising their offers marginally. While purchasing prices offered at Jinzhou port, Liaoning keep flat at 1,860-1,880 yuan/tonne (volume weight 690-720 g/L). Drying corn of Liaoning and Jilin at Bayuquan ports (moisture ≤ 15%, volume weight 690-700 g/L) are pegged at 1,850-1,860 yuan/tonne, up 10 yuan/tonne from yesterday upon the highest price. Corn prices at Shekou port, Guangdong are 2,000 yuan/tonne, and 1,980-1,990 yuan/tonne upon transaction, keeping flat as compared to yesterday. Corn surplus is not much as corn supplying remains few when Chinese Lantern Festival-- the fifteenth day of the first month of Chinese lunar year-- has not yet passed, but on the other hand, deep processors in the downstream have seen a lower inventory level due to stockpiles consumption during the holidays. Therefore, domestic corn prices are fueled further amid robust demand for replenishment after holidays but tight supplies in the period. No doubt, with time going on, corn supply may again be abundant, and meanwhile, corn auction will be on the track or be launched earlier this year, especially, a round of corn auction starts in Inner Mongolia today. On this very note, market players should be aware of the potential risks in corn market even though policy is adjusted to stabilize the market. 

    Daily review on sorghum and barley: today, imported sorghum further prices up where main ports price at 1,930-1,960 yuan/tonne (Tianjin offers 1,960 yuan/tonne, but 1,940 yuan/tonne for one newly vessel of raw sorghum in bulk; Nantong1,930 yuan/tonne; Shanghai stops to report; Guangdong 1,950-1,960 yuan/tonne, up 10 yuan/tonne). At the same time, prices for imported barley increase, pricing 1,830-1,840 yuan/tonne at main ports (Tianjin has not reported yet; Nantong offers 1,850-1,860 yuan/tonne, rising by 10 yuan/tonne; Shekou port in Guangdong 1,840-1850 yuan/tonne, up 10 yuan/tonne). Grains market in these days are fueled by rising corn prices in producing areas. Additionally, imports of sorghum from America will fall impressively for the campaign of “anti-dumping and anti-subsidy” has been launched by China’s Ministry of Commerce for American sorghum. Importers are now inclined to hold onto goods in hope for higher prices and in case of unavailable supply of lower costs and in view of upside-down sorghum prices at home and abroad, under such circumstances, sorghum overall may go strong till any news are released-- sorghum and barley prices go up at some ports today. Market players can wait for new information for guidance.