Daily review on soybean meal: US soybean futures on CBOT last Friday night ended high, and correspondingly, Dalian meal tomorrow may rise significantly with the trade spat ratcheting up. Soybean meal prices today are mostly unquoted amid some big rises, yet turnover is still few upon great price ups in the weekend. Coastal soybean meal prices range from 3,300 to 3,400 yuan/tonne, a rise of 210-250 yuan/tonne (Shandong 3,300-3,400 yuan/tonne, Jiangsu 3,400 yuan/tonne, Dongguan 3,300-3,450 yuan/tonne, Tianjin and Guangxi stop to report). US soybeans welcome a late rally in a volatile session after panic falls with gains basically offsetting the losses as traders on one hand deem that China and the United States will negotiate a deal to defuse the trade spat, and other countries on the other hand may import US soybeans if China turns to South America for soybean purchases. Beyond doubt, import costs of soybeans increase significantly, for instance, basis in South America surges by about 70 cents, yet supply pressure is somewhat eased amid lowered soybean meal production due to relatively low operation rate as from March, therefore shorter term, soybean meal may rise further helped by crushers’ support. The US is now still in the publicity period for its proposed list on China’s goods should be publicized for two months, and whether the additional tariffs go into effect or not remains unknown until the public hearing on May 15th. China’s response by slapping tariffs on US imports including soybeans will take into consideration the US next moves on the issue, on this point, any negotiation before June about the trade issue matters. Frankly speaking, great rallies in soybean meal mainly derive from trade spat rather than fundamentals, therefore, buyers had better not chase high amid huge uncertainties. 

    Daily review on imported rapeseed meal: today, prices for imported rapeseed meal pick up, among which prices in coastal areas stand at 2,700-2,850 yuan/tonne, rising by 120-180 yuan/tonne (Guangxi and Guangdong stop to report; Fujian 2,750 yuan/tonne, up 180 yuan/tonne). China’s shift to South America for soybean purchases boosts soybean basis there, and as a result, import costs of soybeans are accordingly lifted. Prices for rapeseed meal soar to a staggering degree, and with bullish factors in China-US trade spat, rapeseed meal is expected to remain strong. 

    Daily review on fishmeal: today, imported fishmeal price down, 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 12,200-12,300 yuan/tonne with a reduction of 100 yuan/tonne over Friday; 13,100-13,300 yuan/tonne for Japanese SD with 67% protein content, falling100 yuan/tonne against Friday; 13,400-13,500 yuan/tonne for super steam fishmeal with 68% protein content with a reduction of 100 yuan/tonne. Southern ports: fishmeal price for ordinary SD with 65% protein content in Peru is 12,000 yuan/tonne; 12,900 yuan/tonne for Japanese SD with 67% protein content; 13,200 yuan/tonne for super steam fishmeal with 68% protein content, all down 300 yuan/tonne from Friday. Port stocks: Hangpu has 36,000 tonnes, Fuzhou 33,000 tonnes, Shanghai 25,000 tonnes, Tianjin 1,000 tonnes, Dalian 3,000 tonnes, Fangchenggang 1,000 tonnes, and other ports 4,000 tonnes. Spot offers in foreign trading (FOB) drop steadily: the fishmeal offer in Peru ordinary SD with 65% protein content stays at USD $1,550 a tonne, and USD $1,710 per tonne for super steam fishmeal with 68% protein content, both down 20 yuan/tonne as compared to Friday; 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. Peru’s north-central fishing quotas come in a relatively high level at 3,316,700 tonnes in A season of year 2018, yet holders at home are strongly inclined to make shipments as falling futures of fishmeal in the outer carry them weight. For the time being, fishmeal in market is expected to come down. 

    Daily review on soybeans: generally, soybean trade in Shandong is still stumbled when strict port inspections are under way, and meantime, non GM-soybean trade is mostly seen at Tianjin ports despite deficient US soybean supplies, but sufficient non GM-soybean available for market circulation and severe competition among traders otherwise weighs on some imported soybeans in market. In April 4th afternoon, Beijing time, China announced its decision to slap 25% tariffs on soybeans, consequently, US soybeans price up today amid traders' strong inclination to hold onto goods for higher prices. All in all, imported soybeans are expected to go strong in a short term. 

    Daily review on oils: in April 4th afternoon, Beijing time, China announced its decision to slap 25% tariffs on 14 categories of US 106 products including soybeans, automobiles, and chemical products. US soybeans suffered from great tumble the moment the news was released, and the export outlook and performance for US soybeans were expected to be dim in spite of a rally in Friday night. Additionally, China’s shift to South America for soybean purchases greatly boosts soybean basis there amid their farmers’ inclination to hold onto goods. Most oil mills remain unquoted in the weekend though some price high the soybean oil and palm oil, and sales are not many after great price upside, yet oil futures on Dalian Commodity Exchange tomorrow are estimated to be high. US soybeans ratchet up after former decline for the reason of a possible negotiation between China and the US in traders’ point of view and likely US soybean purchases in other countries. Otherwise, soybean oil has plunged to 1.37 Mln tonnes in stocks after lowered operation rate since late March amid soaring import costs, therefore with the trade spate and crushers’ strong incentives to support prices, oils performance for the time being may go strong. The US is still in the publicity period, and whether the additional tariffs on Chinese products go into effect or not remains unknown until the public hearing on May 15th, yet China’s proposed list for tariffs on US products will factor in the US next moves on the issue, on this point, any negotiation before June about the trade issue matters. Frankly speaking, great rallies in oils mainly derive from trade spat rather than fundamentals, therefore, buyers had better not chase high amid huge uncertainties. 

    Today's soybean oil: main prices for GB grade-one soybean oil in coastal areas stay at 6,050-6,150 yuan/tonne, up 240-360 yuan/tonne (Tianjin traders offer 6,040-6,050 yuan/tonne, Rizhao traders and Zhangjiagang traders stop to report, Guangzhou traders 6,050 yuan/tonne). 

    Today's palm oil: 24-degree palm oil prices in coastal areas are mostly between 5,200 and 5,350 yuan/tonne, a rise of 170-200 yuan/tonne (Tianjin traders offer 5,340-5,350 yuan/tonne, a growth of 170 yuan/tonne; Guangzhou 5,200 yuan/tonne, up 200 yuan/tonne; Zhangjiagang traders, Rizhao traders and Xiamen traders stop to report). 

    Daily review on imported rapeseed oil: today, prices for imported rapeseed oil rise, among which prices in coastal areas are 6,550-6,750 yuan/tonne, up 220-330 yuan/tonne against Friday (Great Ocean in Fangchenggang, Guangxi, Fujian and Fuzhiyuan in Dongguan, Guangdong stop to report). China抯 shift to South America for soybean purchases greatly boosts soybean basis there, and as a result, import costs of soybeans are accordingly lifted. Prices for domestic oils are also raised substantially, and with bullish factors in China-US trade spat, rapeseed oil is expected to remain strong to a large extent. 

    Daily review on corn: today, domestic corn continue to price down. Most purchasing prices for corn in Shandong deep processors stay at 1,856-1,960 yuan/tonne, down 10-54 yuan/tonne compared with Wednesday, by contrast, purchasing prices in the northeast stand at 1,610-1,730 yuan/tonne, down 30-60 yuan/tonne over Wednesday. Corn purchasing prices at Jinzhou port, Liaoning are revised to 1,780-1,790 yuan/tonne (volume weight 690-700 g/L), and 1,760 yuan/tonne for volume weight 670 g/L. Drying new corn of Liaoning and Jilin (mositure ≤ 15%, volume weight 690-700 g/L) at Bayuquan port prices at 1,780-1,790 yuan/tonne, down 10 yuan/tonne compared with Wednesday. Corn prices at Shekou port, Guangdong stay at 1,940 yuan/tonne, down 10 yuan/tonne from Wednesday. At 8 o'clock sharp on Wednesday night, news about temporarily reserved corn auction was officially released, about 7 Mln tonnes of corn projected in the first stage. The starting price was notified as follows: 1,300 yuan/tonne for corn in year 2013, 1,400 yuan/tonne in 2014, and 1,450 yuan/tonne in 2015, all in Jilin province. Tamped down by such news, trades would like to speed up shipments and businesses who have enough stockpiles are more cautious about corn buying amid considerable pressure both from political and fundamental sides. On the whole, corn prices domestically are going to be weighed down, therefore focus on corn auction next week and possible price upside should go forward for market guidance. 

    Daily review on sorghum and barley: today, imported sorghum prices down steadily where some ports price at 1,950-2,100 yuan/tonne (Tianjin offers 2,090-2,100 yuan/tonne; Qingdao 2,240 yuan/tonne; Nantong 2,060-2,080 yuan/tonne; Shanghai stops to report; Guangdong 1,950 yuan/tonne, being flat). At the same time, prices for imported barley keep firm, about 1,850-2,050 yuan/tonne at main ports (Qingdao 2,010 yuan/tonne; Nantong offers 1,940 yuan/tonne, Guangdong 1,840-1,850 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 and price downside is not much, if possible.