Daily review on soybean meal: US soybean futures on CBOT last night closed lower, correspondingly, soybean meal today on DCE opens lower. Domestic soybean meal spots are weighed down with narrowed falling futures on DCE, yet lower prices may attract some deals. Soybean meal prices in coastal areas range from 3,150 to 3,220 yuan/tonne, a drop of 20-40 yuan/tonne against yesterday (Tianjin prices 3,220 yuan/tonne, Shandong 3,150-3,170 yuan/tonne, Jiangsu 3,200-3,210 yuan/tonne, Dongguan 3,150-3,230 yuan/tonne, Guangxi 3,190-3,220 yuan/tonne). After China officially imposes tariffs on 128 US goods, US soybeans are seen dragged down by market fears about such severer trade spat between China and the United States. In addition, as great losses of pig industry have seriously affected the initiatives in pig raising, feed consumption in end users is quite low when aquaculture raising is also off-season, which in consequence weighs down soybean meal spots. Import costs for soybeans may be lifted if US soybeans fall into the target of retaliation in the trade war, additionally, soybean meal stocks have now plunged to 770,000 tonnes on the week by 2% for operating rate shows a decline in late March, such being the case, crushers show their support for soybean meal prices, thus limiting the price downside. Yet, attention should still be paid to its performance in medium and long run factored in good crush margins and large soybean arrivals in April-to-June period. Buyers may as well maintain a safe inventory level upon bargain buying, or buy in upon lower forward basis. 

    Daily review on imported rapeseed meal: today, prices for imported rapeseed meal drop down, among which prices in coastal areas stand at 2,520-2,640 yuan/tonne, falling 20-30 yuan/tonne (Guangxi offers 2,530 yuan/tonne; Guangdong offers 1809+50 for basis; Fujian 2,550 yuan/tonne, down 30 yuan/tonne). Domestic soybean meal is now under the impact of bullish USDA report on soybean plantings and China's added tariffs on some US goods officially. Market sentiments have also been ignited though possibility of targeting US soybeans as the retaliation is not that high. Correspondingly, speculators’ caution in short buying and strong performance of meal futures boost rapeseed meal to price up, specially, rapeseed meal in South China last week declined to 59,000 tonne by 6% on the week. 

    Daily review on fishmeal: today, prices for imported fishmeal keep firm, 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 12,300-12,600 yuan/tonne; 13,200-13,500 yuan/tonne for Japanese SD with 67% protein content; 13,500-13,700 yuan/tonne for super steam fishmeal with 68% protein content. Southern ports: fishmeal price for ordinary SD with 65% protein content in Peru is 12,300 yuan/tonne; 13,200 yuan/tonne for Japanese SD with 67% protein content; 13,500 yuan/tonne for super steam fishmeal with 68% protein content. Port stocks: Hangpu has 35,000 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. 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. Domestic holders are still waiting to see Peru's new-season fishing and quotas in the north-central region. In consequence, fishmeal market in a short term is expected to be weak. 

    Daily review on soybeans: domestically, US Gulf soybean prices are pegged at around 3,700 yuan/tonne. Generally, imported GM soybeans prices are way too high, leading to little price difference between domestic soybeans and imported soybeans. Nevertheless, soybean trade in Shandong is still stumbled when strict port inspections are under way, in contrast, GM-soybean trade is mostly seen at Tianjin ports with sufficient supplies, but severe competition among traders otherwise weighs on imported soybeans in market. All in all, imported soybeans are now volatile in a steady pace and in a tight range. 

    Daily review on oils: weighed down by great supply of soybeans and market worries about China-US trade tension, US soybean futures on Chicago Board of Trade last night dropped down, yet released arbitrage of buying soybean meal and selling soybean oil sent US soybean oil to rise. Accordingly, rises of oil futures on Dalian Commodity Exchange today are markedly eased, even lower than former closing in real terms, with which domestic soybean oil and palm oil spots mostly price steadily amid some volatility, and sales are still not many. After China officially imposes tariffs on 128 US goods, US soybeans are seen dragged down by market fears about increasing trade tension between China and the United States. Soybean oil stocks now drop to 1.37 Mln tonnes owing to good sales upon lower prices and significantly falling operating rate as from late March, such being the case, oil spots for the time being rebound in line with futures. Nevertheless, as high as 27.6 Mln tonnes of soybean arrivals in the second quarter and lifted operating rate in oil mills later will lead to the pile-up of soybean meal and soybean oil production, and that increases soybean oil stocks in mid-to-late April. On the whole, the glut of oils for a short time will going on and oil performance in the medium and long run may go unsatisfactory. Wisely, buyers had better arrange well the storage facilities and make replenishment upon bargain buying instead of chasing too high. 

    Today's soybean oil: main prices for GB grade-one soybean oil in coastal areas stay at 5,650-5,820 yuan/tonne, part of which fluctuating by 10-50 yuan/tonne (Tianjin traders offer 5,760-5,770 yuan/tonne, Rizhao traders 5,740 yuan/tonne, Zhangjiagang traders 5,820 yuan/tonne, Guangzhou traders 5,650 yuan/tonne). 

    Today's palm oil: 24-degree palm oil prices in coastal areas are mostly between 5,080 and 5,170 yuan/tonne (Tianjin traders offer 5,160-5,170 yuan/tonne, being flat as opposed to yesterday; Zhangjiagang traders offer 5,150 yuan/tonne; Guangzhou 5,080-5,090 yuan/tonne; Rizhao and Xiamen traders have not reported the prices). 

    Daily review on imported rapeseed oil: today, prices for imported rapeseed oil rise, among which prices in coastal areas are 6,330-6,460 yuan/tonne, up 20-30 yuan/tonne (Maple in Fangchenggang, Guangxi offers 6,380 yuan/tonne, up 30 yuan/tonne; Fujian stops to report; Fuzhiyuan in Dongguan, Guangdong offers 6,400 yuan/tonne, up 20 yuan/tonne). Rapeseed oil may keep rangebound for the time being given grave losses of Argentina's soybean production and the bullish USDA report on plantings. Last week, rapeseed oil in South China accumulated to 65,000 tonnes on the week by 24%, an indicative of rising stockpiles. Additionally, such glut of oils is impressive factored in as high as 27.6 Mln tonnes of soybean arrivals in the second quarter, lifted operating rate and the booming time for Malaysian palm oil in production, in consequence, rapeseed oil for the time being is hard to trade up. 

    Daily review on corn: today, some domestic corn continues to price down marginally, but overall price downside is slowed down. Corn buying prices in Shandong deep processors mostly stay at 1,900-1,980 yuan/tonne, some down 6 yuan/tonne from yesterday. Corn buying prices in the northeast are mostly between 1,640 and 1,760 yuan/tonne, some down 10-20 yuan/tonne from yesterday. While purchasing prices offered at Jinzhou port, Liaoning are mostly around 1,790-1,800 yuan/tonne (volume weight 690-700 g/l), unchanged from yesterday, yet 1,770 yuan/tonne for volume weight 670 g/l. Drying corn of Liaoning and Jilin at Bayuquan ports (moisture ≤ 15%, volume weight 690-700 g/L) are pegged at 1,790-1,800 yuan/tonne, basically flat as compared to yesterday. Corn prices at Shekou port, Guangdong come in at 1,950 yuan/tonne, down 10 yuan/tonne from yesterday. Market sentiments are further dampened by prevailing rumors about reserved corn auction, and with temperature goes higher and higher, some grain holders speed up delivery to supply the market. On one hand, taken into consideration the slack corn demand in the downstream, off-season deep-processing products, grave losses in poultry industry and market moods of “buying up instead of buying down” amid speculators?caution in buying, corn is now overwhelmingly weighed on. Such being the case, corn prices for the time may be week. Yet on the other hand, insufficient soybean surplus in main corn belt and a year-on-year reduction of high-quality corn somewhat support corn prices especially when businesses have rigid demand for corn supply. Still, attention should be paid to reserved corn auction. 

    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 (Tianjin 2,050 yuan/tonne; Qingdao 2,010 yuan/tonne; Nantong offers 1,940 yuan/tonne, Guangdong 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.