Daily review on soybean meal: US soybean futures on CBOT last night were on a strong note owing to a bullish report released by the USDA, the same trend going to Dalian meal, with which domestic soybean meal spots today price up tracking futures. Yet, sales upon prices of high ups are not much and lower forward basis with small ups may attract some deals. Soybean meal prices in coastal areas range from 3,130 to 3,230 yuan/tonne, a rise of 40-100 yuan/tonne against yesterday (Tianjin prices 3,230 yuan/tonne, Shandong 3,150-3,170 yuan/tonne, Jiangsu 3,110-3,220 yuan/tonne, Dongguan 3,170-3,220 yuan/tonne, Guangxi 3,180-3,230 yuan/tonne). Growers will plant 89.98 Mln acres with soybeans this year, the USDA said in a report Thursday, down 1% from last year and totally opposite to analysts’ expectation of higher soybean acres. Such bullish news no doubt greatly boosts US soybean futures on Chicago Board of Trade and soybean meal on Dalian Commodity Exchange. Crushers otherwise at home react actively to the falling soybean crush these two weeks and recent good sales by means of pricing up. The bulk of soybean production decline in Argentina around 39.5 Mln tonnes, large uncertainties in US-China trade disputes, and farmers’ inclination to hold onto goods in Brazil lead to great rises in soybean basis and thus send soybean meal on a strong note. Soybean crush margins still go better backed by large soybean arrivals in April-to-June period and generally high operating rate, yet, its price upside of spots may otherwise be far lower than futures rises when pig raising is such low due to great losses and aquatic raising is still off-season though soybean meal stocks keep accumulating. In near future, soybean meal is more likely to rise amid frequent trading sessions as the decreased planting acreage for soybeans increases the market's bullish sentiment. Wisely, buyers may as well focus on the buying and selling pace and maintain a safe inventory level upon bargain buying rather than chase too high when replenishment is already finished, furthermore, buyers can buy low forward basis. 

    Daily review on imported rapeseed meal: today, prices for imported rapeseed meal rise, among which prices in coastal areas stand at 2,500-2,630 yuan/tonne, rising by 30-80 yuan/tonne (Guangxi offers 2,500 yuan/tonne, up 30 yuan/tonne; Guangdong offers 1809+50 for basis; Fujian 2,560 yuan/tonne, up 80 yuan/tonne). In the early morning, the US Department of Agriculture reported its crop intention for planting acreage this year, among which acreage for soybean come in at 88.98 Mln tonnes acres, a figure lower than market expectation. Based on the acreage data and upcoming speculation on planing acreage, US soybeans are hard to price down, meantime, rapeseed meal prices are strongly supported. Additionally, bullish domestic market owing to trade disputes and machine halt in many oil mills in Guangxi and Guangdong provinces, South China both send rapeseed meal to a bullish side, and on the whole, rapeseed meal may be in frequent sessions tracking future. 

    Daily review on fishmeal: today, prices for imported fishmeal drop slightly, yet prices are negotiable upon transaction and shipments at ports are general. Northern ports: fishmeal price for Peru ordinary SD with 65% protein content are 12,300-12,600 yuan/tonne with a reduction of 200-300 yuan/tonne over yesterday; 13,200-13,500 yuan/tonne for Japanese SD with 67% protein content, falling100 yuan/tonne against yesterday; 13,500-13,700 yuan/tonne for super steam fishmeal with 68% protein content with a reduction of 100 yuan/tonne. Southern ports: fishmeal price for Peru ordinary SD with 65% protein content are 12,300 yuan/tonne, down 200 yuan/tonne from yesterday and 13,200 yuan/tonne for Japanese SD with 67% protein content; 13,500 yuan/tonne for super steam fishmeal with 68% protein content, both down 100 yuan/tonne from yesterday. Port stocks: Hangpu has 34,000 tonnes, Fuzhou 33,000 tonnes, Shanghai 24,000 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 $1,570 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 $1,700 per tonne, USD $1,800 per tonne for excellent fishmeal with 68% protein content. As aquatic raising has not yet started, demand for fishmeal is not on the increase amid accumulating fishmeal stocks at home, in this case, fishmeal prices are expected to be low. 

    Daily review on soybeans: competition now between traders is intense since non-GM soybeans at home are sufficient in supplies, and prices in consequence for imported soybeans are not that high. Actually, conversion about bilateral trade between China and the United States is under way with no latest news on the issue. Such being the case, market players now focus on the fundamentals, one is US soybean acreage report for analysts calculate that acreage will reach a fresh high of 91.1 Mln acres this year and additionally, soybean stocks are only expected to be high in March due to bumper soybeans in years; second is anticipated bumper harvest of soybean in Brazil when Agroconsult agency has revised soybean production estimates up to 118.9 Mln tonnes from 117.5 Mln tonnes earlier. If confirmed, soybeans in the market may be under pressure. 

    Daily review on oils: US soybean futures on CBOT ended the day on a strong note, meantime US soybean oil and US soybean meal last night both rose further as the USDA shocked the market traders with lower acreage for soybeans than that of last year. Correspondingly, Dalian oils go up, with which domestic soybean oil and palm oil spots price up, yet turnover is still not much. The USDA projections of US soybean acreage this year around 88.98 Mln tonnes boost US soybean futures and Dalian oils on a strong note. But notably, soybean oil falls to 1.39 Mln tonnes in stocks affected by significant reduction of Argentina's soybean as low as 39.5 Mln tonnes and lowered operating rate in these two weeks. Uncertainties in the trade spat and impressive rises of Brazil's soybean basis due to farmers’ incentives to hold onto goods are bullish for the oils market though overwhelming supply over demand comes in on the bearish side, therefore with all taken into consideration, oils are probable to price up again. Buyers are suggested to make proper replenishment upon bargain buying. 

    Today's soybean oil: main prices for GB grade-one soybean oil in coastal areas stay at 5,570-5,730 yuan/tonne, up 20-50 yuan/tonne (Tianjin traders offer 5,680-5,690 yuan/tonne, Rizhao traders 5,680 yuan/tonne, Zhangjiagang traders 5,730 yuan/tonne, Guangzhou traders Y1805-60/80). 

    Today's palm oil: 24-degree palm oil prices in coastal areas are mostly between 5,030-5,130 yuan/tonne, increasing by 10-40 yuan/tonne (Tianjin traders offer 5,110-5,130 yuan/tonne, a rise of 30 yuan/tonne; Rizhao traders stop to report; Zhangjiagang traders offer 5,080 yuan/tonne, a rise of 10 yuan/tonne; Guangzhou 5,030-5,040 yuan/tonne; Xiamen 5,120 yuan/tonne, a rise of 40 yuan/tonne). 

    Daily review on imported rapeseed oil: today, prices for imported rapeseed oil rise marginally, among which prices in coastal areas are 6,250-6,400 yuan/tonne, some up 20-50 yuan/tonne against yesterday (Maple in Fangchenggang, Guangxi offers 6,270 yuan/tonne; Fujian stops to report; Fuzhiyuan in Dongguan, Guangdong offers 6,280 yuan/tonne, up 20 yuan/tonne). The bullish news in the USDA report boosts futures on a strong note and strengthens market confidence. Yet, a glut of oils still persists in the market with its stockpiles in a high level, helped by large soybean arrivals in the second quarter and high operating rate in following weeks. Shorter term, rapeseed oil may vibrate frequently with futures when its price upside is somewhat capped.  

    Daily review on corn: today, domestic corn continue to price down. Corn buying prices in Shandong deep processors mostly stay at 1,940-2,040 yuan/tonne, some down 6-20 yuan/tonne from yesterday. While purchasing prices offered at Jinzhou port, Liaoning are mostly around 1,700-1,790 yuan/tonne (volume weight 690-700 g/L), down 10-60 yuan/tone from yesterday. Drying corn of Liaoning and Jilin at Bayuquan ports (moisture ≤ 15%, volume weight 690-700 g/L) are pegged at 1,840-1,850 yuan/tonne, basically unchanged from yesterday. Corn prices at Shekou port, Guangdong stay at 2,000 yuan/tonne, remaining flat over yesterday. Market sentiments are generally dampened when market news goes that auction of reserved corn will be launched in early April, yet some traders hoarding goods in these days speed up delivery though deep processors in northeast prefer to put down corn buying prices. Meantime, deep processors in North China continue to weigh down corn buying prices though their inventory is basically replenished. Additionally, feed sectors prefer a hand-to-mouth corn purchasing and show their caution about purchases of high-quality corn, yet such slack demand also drags its prices down. Corn prices at home may turn low before auctions of reserved corn, and especially, the time, quantities and starting prices of auctions will be the determining factors for market trend. 

    Daily review on sorghum and barley: today, imported sorghum prices down steadily where some ports price at 1,960-2,100 yuan/tonne (Tianjin offers 2,090-2,100 yuan/tonne; Nantong 2,060-2,080 yuan/tonne, down 20 yuan/tonne; Shanghai stops to report; Guangdong 1,950 yuan/tonne, being flat). At the same time, prices for imported barley keep firm, about 1,860-1,940 yuan/tonne at main ports (Tianjin has not reported yet; Nantong offers 1,930 yuan/tonne, Guangdong 1,860 yuan/tonne). News about corn auction prevails in the market, sending corn to a bearish side, in consequence, consistent falls of corn prices weigh on grains at ports, in detail, sorghum prices at some ports today are a tad lower. 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. And according to importers, sorghum imports in April are quite few the time import costs for sorghum and barley from Australia keep increasing in April and May delivery. Upside-down sorghum and barley prices are obvious factored in fundamental pressure and rising costs. Overall, the strong performance of grains will go forward depite some falls if possible.