Today (on March 20th), trends for Chinese animal and plant protein, oils & oilseeds and grains are shown as follows:

    Daily review on soybean meal: US soybeans last night tumbled significantly on CBOT, the same trend going to Dalian soybean meal today. Accordingly, domestic soybean meal spots are weighed down with futures today and turnover turns light. Soybean meal prices in coastal areas range from 3,030 to 3,090 yuan/tonne, a drop of 20-60 yuan/tonne against yesterday (Tianjin prices 3,130 yuan/tonne, Shandong 3,070-3,090 yuan/tonne, Jiangsu 3,040-3,060 yuan/tonne, Dongguan 3,070-3,090 yuan/tonne, Guangxi 3,090-3,100 yuan/tonne). US soybean futures are seen to be weighed on as Argentina’s soybean losses in producing areas are somewhat eased by blessing rains recently as well as a fresh high soybean production in Brazil in wake of its quicker-than-normal harvest progress. In general, soybean meal stocks rise to 0.8 Mln tonnes on the week by 12% helped by good crush margins, large soybean arrivals during April-to-June period-- around 27.6 Mln tonnes and lifted operating rate in oil mills. While on the other hand, sales of soybean meal are still poor seeing that pig rising remains unsatisfactory after great losses. That results in price decline of soybean meal spots. Notwithstanding, such decline will not be impressive for an expected overhaul in most oil mills in the near half or one month will limit the falling pace to some extent. Furthermore, Argentina' soybean production will only be expected to set in late March or early April amid likely weather speculations. As a consequence, soybean meal may probably vibrate tracking futures and is limited to fall a lot, therefore, buyers are suggested to stand by when futures are still on the decrease.

    Daily review on imported rapeseed meal: today, prices for imported rapeseed meal drop, among which prices in coastal areas stand at 2,440-2,520 yuan/tonne, falling 10-20 yuan/tonne (Guangxi offers 2,440 yuan/tonne, down 20 yuan/tonne; Guangdong 2,510 yuan/tonne, down 20 yuan/tonne; Fujian 2,450 yuan/tonne, down 20 yuan/tonne). US soybean futures are weighed on factored in increasing US soybean acreages and persisting trade tension between China and the US. Though rapeseed meal stocks in South China keep growing, poor demand in aquatic raising restrains its performance in market and puts its prices down. Therefore, rapeseed meal may vibrate with futures in the context of uncertain Argentina’s soybean production till late March or early April and likely weather speculations. 

  

    Daily review on fishmeal: today, prices for imported fishmeal drop marginally, yet prices are negotiable upon transaction and shipments at ports are general. Northern ports: fishmeal price for ordinary SD with 65% protein content in Peru is 12,600-12,800 yuan/tonne; 13,300-13,500 yuan/tonne for Japanese SD with 67% protein content; 13,600-13,800 yuan/tonne for super steam fishmeal with 68% protein content, all down 200 yuan/tonne from yesterday. Southern ports: fishmeal price for ordinary SD with 65% protein content in Peru is 12,500 yuan/tonne; 13,300 yuan/tonne for Japanese SD with 67% protein content; 13,600 yuan/tonne for super steam fishmeal with 68% protein content, all down 200 yuan/tonne from yesterday. Port stocks: Hangpu has 32,000 tonnes, Fuzhou 32,000 tonnes, Shanghai 23,000 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, in detail, the fishmeal offer for ordinary SD with 65% protein content in Peru stays at USD $1,570 per tonne, USD $1,730 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. Although Peruvian fishmeal is in short supply at home, unsatisfactory demand for fishmeal replenishment in final feed sectors still result in an accumulation of fishmeal stocks at ports, which puts pressure on domestic fishmeal prices. Shorter term, fishmeal in domestic market will still be weak.

    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: US soybean last Friday night on CBOT tumbled greatly, hit by technical selling and blessing rains in Argentina from which crop growth may benefit after drought woes. Correspondingly, oils on Dalian Commodity Exchange come down further, with which domestic soybean oil and palm oil spots are both weighed down, yet turnover is not much though lower prices may attract deals especially when falling tendency is narrowed in the afternoon. In real terms, soybean oil has accumulated to more than 1.4 Mln tonnes based on high operating rate and large soybean arrivals in April-to-June period— around 27.6 Mln tonnes, thus with overwhelming oil glut, oil prices are pressured down. However, uncertain Argentina’s soybean production and persisting weather speculations otherwise have put a cap on the price decline, though oil spots in a short term will vibrate in a weak performance. Wisely, buyers had better maintain a light inventory level for the moment. 

    Today's soybean oil: main prices for GB grade-one soybean oil in coastal areas stay at 5,540-5,690 yuan/tonne, falling 20-60 yuan/tonne (Tianjin traders offer 5,680-5,690 yuan/tonne, Rizhao traders 5,700 yuan/tonne, Zhangjiagang traders 5,680 yuan/tonne, Guangzhou traders 5,540-5,560 yuan/tonne). 

    Today's palm oil: 24-degree palm oil prices in coastal areas range from 5,060 to 5,120 yuan/tonne, most falling 10-50 yuan/tonne (Tianjin traders offer 5,110-5,120 yuan/tonne, down 20 yuan/tonne; Rizhao traders 5,200 yuan/tonne, being flat; Zhangjiagang traders 5,100 yuan/tonne, down 50 yuan/tonne; Guangzhou traders 5,060 yuan/tonne; Xiamen traders 5,150 yuan/tonne, being flat). 

    Daily review on imported rapeseed oil: today, imported rapeseed oil prices down, among which prices in coastal areas are 6,320-6,480 yuan/tonne, down 20-50 yuan/tonne (Great Ocean in Fangchenggang, Guangxi offers 6,370 yuan/tonne, down 50 yuan/tonne; Chinatex in Zhangzhou, Fujian offers basis 1809-180 for May delivery; Shenheng in Dongguan, Guangdong offers basis 1809-220 for May delivery). US soybean futures are weighed on factored in increasing US soybean acreages and persisting trade tension between China and the US. In addition, rapeseed oil and soybean oil stocks keep increasing in stocks amid pressure on palm oil from substantial production in Southeast Asia. Under such circumstances, it is expected that rapeseed oil in a short term will fluctuate frequently tracking futures amid oil glut.

    Daily review on corn: today, domestic corn prices mostly keep firm amid some rises. Corn buying prices in Shandong deep processors mostly stay at 1,930-2,100 yuan/tonne, some up 10-40 yuan/tonne from yesterday. While the purchasing prices offered at Jinzhou port, Liaoning keep flat at 1,860-1,900 yuan/tonne (volume weight 690-710 g/L). Drying new corn of Liaoning and Jilin (moisture ≤ 15%, volume weight 690-700 g/L) at Bayuquan ports prices at 1,890-1,900 yuan/tonne, up 10 yuan/tonne from yesterday. Corn prices at Shekou port, Guangdong settle at 2,030-2,050 yuan/tonne, being flat. Corn supplying in North China remains few when shipments are delayed by recent rains, but on the other hand, some businesses are inclined to corn buying in case of low inventory levels. Meantime, with subsidies being given to deep processors in Jilin province, corn buying prices are raised by some local businesses when corn surplus in northeastern corn belt is basically out of stock and some traders hold onto goods for higher prices. Whereas, gradually provincial grains for rotating out in the market and approaching policy-oriented corn selling will no doubt fill the market. At that time, price upside of corn may also be stumbled for most feed sectors in the downstream probably take a hand-to-mouth purchasing strategy. Shorter term, corn prices will keep high and fluctuate in a tight range, but attention should still be paid to relative auctions about reserved corn.

    Daily review on sorghum and barley: today, imported sorghum keeps firm where some ports price at 1,960-2,050 yuan/tonne (Nantong 2,050 yuan/tonne; Shanghai stops to report; Guangdong 1,960-1,980 yuan/tonne). Yet, prices for imported barley go steady, about 1,860-1,930 yuan/tonne at main ports (Tianjin has not reported yet; Nantong offers 1,930 yuan/tonne, Guangdong 1,860 yuan/tonne). Imports of sorghum from America will fall impressively for the campaign of “anti-dumping and anti-subsidy” has been launched by China' Ministry of Commerce for American sorghum and import costs keep increasing, especially for April delivery. 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. With bullish factors supported, grains at some ports price up further. Overall, grains in a short term may go high in prices.