Today is 03/29/2024

Market for Chinese Main Agricultural Commodities on April 17th

2018-04-17 www.cofeed.com
    Today(on April 17th), trends for Chinese animal and plant protein, oils & oilseeds and grains are shown as follows: 

Plant protein: 

    Daily review on soybean meal: US soybean futures on CBOT last night closed lower owing to profit taking, correspondingly, soybean meal today on DCE drops most of the time. Domestic soybean meal spots are weighed down tracking furtures, yet lower prices may attract some deals. Soybean meal prices in coastal areas range from 3,150 to 3,200 yuan/tonne, a drop of 10-30 yuan/tonne against yesterday (Tianjin prices 3,200 yuan/tonne, Shandong 3,150-3,200 yuan/tonne, Jiangsu 3,200-3,240 yuan/tonne, Dongguan 3,180-3,260 yuan/tonne, Guangxi 3,200-3,240 yuan/tonne). Soybean meal spot prices overall edge down in the morning for the reason that as high as 28.5 Mln tonnes of soybeans are expected to arrive at ports in May-to-July period, and driven by profitable crush margins, weekly crush may possibly reach an exceedingly high level of 1.8 Mln tonnes in the following two weeks, and for another that losses in pig raising and slack demand in off-season aquatic raising contribute to fragile consumption of meals in end users. In addition, some crushers urges buyers to make delivery in case of bloated soybean meal, especially in Shandong province. Argentina's soybean production decreases by 30% or far more above and lingering nerves over US-China trade tensions work against US soybean planting acreage. Surprisingly, meals on Dalian Commodity Exchange end the day higher, soaring by 70 points drastically when China's Ministry of Commerce is resolved to take anti-dumping measures on US sorghum imported from the date Apr.18th. Besides, there have been ideas in the marketplace that US administration will public its detail tariffs on Chinese goods worthy of 100 billion dollars. That a possible heating-up of the trade tension will underpin soybean meal prices in market. Attention should still be paid to the trade spat and buyers had better make replenishment upon bargain buying instead of chasing high.  

    Daily review on imported rapeseed meal: today, prices for imported rapeseed meal drop steadily, among which prices in coastal areas stand at 2,560-2,680yuan/tonne with a drop of 10 yuan/tonne over yesterday (Guangxi offers 2,600 yuan/tonne; Guangdong Fuzhiyuan 2,680 yuan/tonne down 10 yuan/tonne from yesterday; Fujian 2,680 yuan/tonne). An improvement of rapeseed processing capacity helped by good crush margins, sufficiently large soybean and rapeseed at ports contribute to a pile-up of rapeseed meal stockpiles, notwithstanding, slow demand in end users stumbles its consumption and weighs on its performance. But affected by China's proposed countermeasure against US sorghum dumping and US proposed tariffs on Chinese goods worthy of 100 billions, rapeseed meal is likely to price up in the days ahead following rallies in soybean meal. 

    Daily review on fishmeal: today, prices for imported fishmeal edge lower in a steady pace, yet prices are negotiable upon transaction and shipments at ports are general. Southern ports: fishmeal price for Peru ordinary SD with 65% protein content are 11,700-11,800 yuan/tonne, 12,600-12,800 yuan/tonne for Japanese SD with 67% protein content; 13,000 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 11,600 yuan/tonne; 12,500 yuan/tonne for Japanese SD with 67% protein content; 12,800 yuan/tonne for super steam fishmeal with 68% protein content. Port stocks: Hangpu has 36,000 tonnes, Fuzhou 33,000 tonnes, Shanghai 26,000 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 $1,470 per tonne, USD $1,630 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 Peru's futures in the outer trade weaker, and fihsmeal holders are under pressure seeing feed sectors at home have little interest in buying, fishmeal is possible to trade lower in the market. 

Oils & Oilseeds: 

    Daily review on soybeans: generally, soybean trade at Shandong ports is still stumbled when strict port inspections are under way, Prices for imported soybeans at Tianjin port are stable, ranging from 3,450 to 4,330 yuan/tonne. Prices for US soybeans remain high due to higher import costs of soybeans for the moment, and particularly, market speculation now switches to weather in the US soybean growing areas for US soybeans are now in the sowing period, therefore, imported soybean is hard to price down. Otherwise, price upside of imported soybeans will not go out of control in the case that non-GM soybeans sales are dominant at Tianjin ports for US soybean available for market distribution is less and less. On the whole, imported soybeans for the time being may go stable with upward tendency. 

    Daily review on oils: beans last night on CBOT all dropped due to speculators' profit taking. Accordingly, oils on Dalian Commodity Exchange pare gains further, with which domestic soybean oil and palm oil spots are also weighed down in the early trading session, but narrow declines in the afternoon. No doubt, sales upon lower prices are on the increase. Weekly crush has great potential to hit an exceedingly high level of 1.8 Mln tonnes in the following two weeks based on large soybean arrivals and lucrative crush margins, if so, oil in market are dragged down factored in all bearish fundamentals. Argentina's soybean production decreases by 30% or far more above and lingering nerves over US-China trade tensions work against US soybean planting acreage. Out of surprise, meals on DCE suddenly soar by 70 points and soybean oil 60 points when China's Ministry of Commerce announces its countermeasures against US sorghum dumping this afternoon. Adding to the trade tension is that US administration is reported to detail its additional tariffs on Chinese goods, under such circumstances, oil spots in the days ahead are probable to rally. Buyers are suggested to make proper replenishment and maintain a safe inventory level. 

    Today's soybean oil: main prices for GB grade-one soybean oil in coastal areas stay at 5,620-5,760 yuan/tonne, down 50-80 yuan/ton, (Tianjin traders offer 5,750-5,760 yuan/tonne, Rizhao traders 5,730 yuan/tonne, Zhangjiagang traders 5,750 yuan/tonne, Guangzhou traders 5,620 yuan/tonne). 

    Today's palm oil: 24-degree palm oil prices in coastal areas range from 4,990 to 5,090 yuan/tonne, most falling 40-50 yuan/tonne (Tianjin traders offer 5,080-5,090 yuan/tonne, down 40 yuan/tonne; Rizhao traders stop to report; Zhangjiagang traders 5,050 yuan/tonne, down 50 yuan/tonne; Guangzhou traders 4,990 yuan/tonne; Xiamen traders 5,050-5,070 yuan/tonne, down 40 yuan/tonne). 

    Daily review on imported rapeseed oil: today, prices for imported rapeseed oil drop, among which prices in coastal areas are 6,210-6,370 yuan/tonne, down 70-80 yuan/tonne (Great Ocean in Fangchenggang, Guangxi offers 6,280 yuan/tonne, down 70 yuan/tonne; Fujian offers basis 1809-160; Fuzhiyuan in Dongguan, Guangdong offers 6,300 yuan/tonne, down 80 yuan/tonne). Soybean oil stockpiles again edge up backed by good crush margins, large soybean arrivals in May-to-July period and improved operation rate, which drags down rapeseed oil prices, in other words, rapeseed oil is to move sideways for the moment factored in all bearish fundamentals. Yet, rapeseed oil spots in the following days may price up seeing trade tension is somewhat heated up by China's anti-dumping measures and the US possible declaration about the additional tariffs on Chinese goods this week. 

Grains: 

    Daily review on corn: today, prices for domestic corn prices remain stable with slight fluctuations. Corn buying prices in Shandong deep processors mostly stay at 1,800-1,940 yuan/tonne, some down 20 yuan/tonne further from yesterday. While purchasing prices offered at Jinzhou port, Liaoning are mostly around 1,760-1,770 yuan/tonne (volume weight 690-700 g/L), unchanged from yesterday. Drying corn of Liaoning and Jilin at Bayuquan ports (moisture ≤ 15%, volume weight 690-700 g/L) are pegged at 1,770-1,780 yuan/tonne, basically unchanged from yesterday. Corn prices at Shekou port, Guangdong stay at 1,920 yuan/tonne, being flat over yesterday. Corn supply will be sufficiently large later if corn auction becomes a normality, to illustrate, another 7 Mln tonnes are projected to be in market this week. On the other hand, businesses in the downstream generally maintain or increase overall cation about corn purchases, such being the case, corn prices are pressured down amid overwhelming supply over demand.  Whereas, corn buying prices offered by some Shandong businesses are seen ratcheting up in consideration of poor corn quality in the first-round auction and deficient supply of corn spots with good quality. Furthermore, rigid demand for high-quality corn also underpins its prices. Generally, corn is to trade sideways with downward tendency for the time being and wisely, focus on corn auction and possible price premium should go forward.  

    Daily review on sorghum and barley: today, prices for imported sorghum go steady with downward tendency, settling at 1,920-2,050 yuan/tonne at main ports (Tianjin offers 2,050 yuan/tonne for the US sorghum, Shandong offers 2,360 yuan/tonne for Australian sorghum; Nantong 2,000-2,020 yuan/tonne; Guangdong 1,920-1,930 yuan/tonne, down 10 yuan/tonne upon the lowest price). At the same time, prices for imported barley keep firm, about 1,820-1,940 yuan/tonne at main ports (Shandong offers 1,940 yuan/tonne; Nantong 1,910-1,930 yuan/tonne; Guangdong 1,820 yuan/tonne, being flat). Corn auction is now started with 7 Mln tonnes in the first stage and another 7 Mln tonnes to be auctioned in next week, which weighs down corn prices and dampens market sentiment amid slack demand in pigs and poultry industry. Correspondingly, barley at some ports prices down further. China's Ministry of Commerce this afternoon issue the No. 38 Announcement of year 2018 about the preliminary ideas on anti-dumping investigations of imported US sorghum. As soon as the news comes out, importers are inclined to hold onto goods, and without doubt, such bullish policy will help imported sorghum prices to ratchet up. 

(USD $1=CNY 6.28)