Daily review on soybean meal: futures go up further, correspondingly, soybean meal spots today price up tracking futures, yet overall turnover is still not much though lower prices indeed attract some deals. Soybean meal prices in coastal areas range from 3,010 to 3,080 yuan/tonne, increasing by 10-30 yuan/tonne against last Saturday (Tianjin prices 3,080 yuan/tonne, Shandong 3,035-3,040 yuan/tonne, Jiangsu 3,010-3,050 yuan/tonne, Dongguan 3,020-3,060 yuan/tonne, Guangxi 3,030-3,040 yuan/tonne). As four-month-long drought goes severer in Argentina, soybean yield could slide even further, consequently, US soybean futures are supported and fueled. Additionally, its futures are also bolstered by processors’ incentive to hold out for higher prices and quite a lot of outstanding contacts due to a machine halt in most oil mills during Chinese New Year. By and large, soybean meal spots for a short time are more likely to rebound with weather speculation going forward. But notably, pressure may come back when pig raising is sluggish affected by drastic price decline in the run-up to holidays and monthly soybean arrivals in April and May regain to 9 Mln tonnes. Therefore, buyers may as well take a bargain hunting strategy to maintain safe stocks rather than chase high. 

    Daily review on imported rapeseed meal: today, prices for imported rapeseed meal rise steadily, among which prices in coastal areas stand at 2,400-2,480 yuan/tonne, rising 10-20 yuan/tonne (Guangxi offers 2,400 yuan/tonne; Guangdong offers 05-30 for basis; Fujian 2,480 yuan/tonne). Meals in domestic market have been further fueled by recent hot weather speculation in South America, consequently, a short-lived rally may easily come along, but there is still no substantial improvement in the fundamentals of rapeseed meal. To illustrate, supply pressure will be increasingly enlarged factored in abundant rapeseed but off-season aquaculture, furthermore, pressure will be seen when soybeans from South America rush to the market in later March and monthly soybean arrivals in April and May reach to 9 Mln tonnes. That will weigh down soybean meal prices, and correspondingly put a cap on price upside of rapeseed meal. 

    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. Port stocks: Hangpu has 25,000 tonnes, Fuzhou 32,000 tonnes, Shanghai 18,000 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. As Peru Institute of Oceanography has officially started anchovy resources survey in all its sea areas in year 2018, which is expected to be completed on April 6th, market players now prefer to hold a wait-and-see attitude. In this case, price variations are limited. 

    Daily review on soybeans: due to a strict investigation by State Commodity Inspection Department, imported soybeans for distribution at Qingdao and Rizhao ports are mostly unquoted. Soybean arrivals in February and March are 5.56 Mln tonnes and 6.7 Mln tonnes respectively, significantly lower than former expectations due to strict inspection for impurities in US soybeans. The decrease in soybean arrivals boosted market confidence and accordingly, some imported soybeans price at around 3,700 yuan/tonne-- a price significantly higher than former’s. But notably, imported soybeans and domestic soybeans are basically equivalent in prices. Imported soybeans for distribution are markedly restricted in food-grade products circulation for port inspections, and 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: US soybean and soybean oil rebounded last Friday night with concerns about declining soybean output in Argentina and strong export of US soybean oil, while on the contrary, US soybean meal was seen to fall. Accordingly, oils on Dalian Commodity Exchange go high further, of which domestic soybean oil and palm oil spots are buoyant following futures, yet overall turnover is still not much though lower prices indeed attract some deals. Buenos Aires Grain Exchange is about to reduce the soybean yield to 47 Mln tonnes from 50 Mln tonnes in the previous forecast-- a figure lower than yesterday’s 57.5 Mln tonnes-- when weather in Argentina becomes dryer and dryer, which supports US soybeans to go strong. Generally speaking, oils may welcome a rally for a time given that only 6.7 Mln tonnes of soybeans arrive at ports in March and machine start resumes in a slow pace when holidays just pass away even though soybean oil is decreasing in its stocks. But to tell the truth, market players had better be cautious about the price upside in light of soaring soybean meal prices and overwhelming oil supplies, therefore, buyers may as well not chase high.  

    Today's soybean oil: main prices for GB grade-one soybean oil in coastal areas stay at 5,660-5,760 yuan/tonne, up 30-70 yuan/tonne (Tianjin traders offer 5,750-5,760 yuan/tonne, Rizhao traders 5,760 yuan/tonne, Zhangjiagang traders 5,750 yuan/tonne, Guangzhou traders 5,660 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 20-50 yuan/tonne (Tianjin traders offer 5,320-5,330 yuan/tonne, a rise of 50 yuan/tonne; Zhangjiagang traders offer 5,300 yuan/tonne, a rise of 20 yuan/tonne; Guangzhou traders 5,250 yuan/tonne; Xiamen 5,270 yuan/tonne, a rise of 50 yuan/tonne; Rizhao stops to report). 

    Daily review on imported rapeseed oil: today, imported rapeseed oil price up, among which main prices in coastal areas stay at 6,290-6,460 yuan/tonne (Great ocean in Fangchenggang, Guangxi offers 6,330 yuan/tonne; Yinxiang in Xiamen, Fujian stops to report; Fuzhiyuan in Dongguan, Guangdong offers 6,380 yuan/tonne for GB grade-four rapeseed oil, up 60 yuan/tonne). Rapeseed oil in East China last week were down by 5% on the week to 160,000 tonnes in stocks, but supply further was seen expanding as about 0.21 Mln tonnes of rapeseed oil had been sold publicly by State Reserves Bureau earlier this year along with another targeted 0.9 Mln tonnes amid weather speculation in South America. In addition, demand turns poor after Chinese holidays and its counterparts--soybean oil and palm oil boast higher inventory levels than figures in the same period of former years, demonstrating oil glut for the moment. Therefore with all taken into consideration, rapeseed oil may vibrate following futures time and again and fail to rebound a lot. 

    Daily review on corn: today, domestic corn continues to price up. Corn buying prices in Shandong deep processors mostly stay at 1,870-1,990 yuan/tonne, up 10-20 yuan/tonne from last Saturday. While the purchasing prices offered at Jinzhou port, Liaoning rise by 30-40 yuan/tonne as compared to last Saturday at 1,8250-1,880 yuan/tonne (volume weight 690-700 g/L). While drying new corn of Liaoning and Jilin (moisture ≤ 15%, volume weight 690-700 g/L)  at Bayuquan ports prices at 1,840-1,850 yuan/tonne, a rise of 20 yuan/tonne as compared to last Saturday. Corn prices at Shekou port, Guangdong are raised to 1,980-2,000 yuan/tonne, a rise of 20 yuan/tonne against last Saturday, yet 1,970-1,980 yuan/tonne for some upon transaction, up 10-20 yuan/tonne. Corn buying and selling are being on the track for holidays atmosphere still lingers on market. On one hand, corn supplying in corn belt remains few for farmers’ little incentives to sell out with a bullish attitude towards market though corn surplus is not not much, but on the other hand, some deep processors in the downstream have seen a lower inventory level for insufficient stockpiles in the run-up to holidays and are inclined to lift corn prices to attract more supplying. Therefore, corn at coastal ports are seen to price up. In general, domestic corn is provisionally expected to be strong in performance and be high in prices in a volatile pattern. But price vibrations of corn may be intensified since auction of stored corn hangs in doubt and fish breeding and poultry raising are off-season. 

    Daily review on sorghum and barley: today, prices for imported sorghum rise steadily where some ports price at 1,900-1,960 yuan/tonne (Tianjin 1,960 yuan/tonne, up 30 yuan/tonne; Nantong 1,900 yuan/tonne; Shanghai stops to report; Guangdong 1,900 yuan/tonne). At the same time, prices for imported barley remain stable, ranging from 1,810 to 1,830 yuan/tonne at main ports (Tianjin has not reported yet; Nantong offers 1,850 yuan/tonne, yet 1,820-1,830 yuan/tonne upon transaction; Shekou port in Guangdong 1,810 yuan/tonne). Grains market in these days are fueled by rising corn prices in producing areas. 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 and in case of unavailable supply of lower costs, under such circumstances, sorghum overall may go strong for the time being-- sorghum prices go up at some ports today. Market players can wait for new information for guidance.