Daily review on soybean meal: domestic soybean meal spots are still weighed down tracking futures, yet turnover presents light. Soybean meal prices in coastal areas range from 3,050 to 3,120 yuan/tonne, a drop of 20-40 yuan/tonne against yesterday (Tianjin prices 3,150 yuan/tonne, Shandong 3,050-3,080 yuan/tonne, Jiangsu 3,060-3,090 yuan/tonne, Dongguan 3,080-3,100 yuan/tonne, Guangxi 3,080-3,120 yuan/tonne). Given the trade talks between China and the United States last week disappointed traders, their fears about China’s weakened demand sent US soybean down. Meantime, soybean meal spots are also pressured down due to burdensome stockpiles but slow consumption in end users, specifically, a huge loss in pig industry disappoint pigs raising and aquatic raising is delayed in southern areas in case of heavy rains recently, and additionally, idle plants are substantially on the increase despite crushers’ strong willingness in sales. Nevertheless, market participants will not switch to the bearish stance too far factored in the uncertainty in the trade war, such being the case, soybean meal prices have trouble moving downward out of control, instead, trade sideways mainly in a downward tendency. Buyers, therefore, had better take a wait-and-see attitude and make proper replenishment upon bargain hunting. Daily review on imported rapeseed meal: today, prices for imported rapeseed meal go down, among which prices in coastal areas stand at 2,580-2,640 yuan/tonne, falling 20-30 yuan/tonne over yesterday (Guangxi offers 2,580 yuan/tonne, with a decline of 20 yuan/tonne; Guangdong Fuzhiyuan 2,640 yuan/tonne, down 20 yuan/tonne; Chinatex in Zhangzhou, Fujian 2,620 yuan/tonne, falling 30 yuan/tonne). Shorter term, rapeseed meal is to trade sideways mainly in a tight range tracking futures when factored in large soybean arrivals at ports later, increasing supply of domestic new rapeseed and accumulating stockpiles, a growth of 30% to 45,000 tonnes in South China last week. Market participants had better keep an eye on the trade spat under way for guidance. 

    Daily review on fishmeal: today, prices for imported fishmeal drop steadily, yet prices are negotiable upon transaction and shipments at ports are general. Northern ports: fishmeal prices for Peru ordinary SD with 65% protein content are 11,000-11,200 yuan/tonne with a reduction of 100 yuan/tonne over last week; 11,600-11,700 yuan/tonne for Japanese SD with 67% protein content, down 500 yuan/tonne against last week; 12,300-12,400 yuan/tonne for super steam fishmeal with 68% protein content, down 100 yuan/tonne over last week. Southern ports: fishmeal price for ordinary SD with 65% protein content in Peru is 10,900 yuan/tonne; 11,800 yuan/tonne for Japanese SD with 67% protein content; 12,200 yuan/tonne for super steam fishmeal with 68% protein content. Port stocks: Hangpu has 40,000 tonnes, Fuzhou 35,000 tonnes, Shanghai 32,000 tonnes, Tianjin 1,000 tonnes, Dalian 4,000 tonnes, Fangchenggang 1,000 tonnes, and other ports 5,000 tonnes. Fishing: till May 2nd, about 1,207,151 tonnes of fish have been caught in northern and central Peru in A season of year 2018, accounting for 36.4% of the total volume; fishing quota for this season is 3,316,700 tonnes, among which 2,109,549 tonnes remain unfinished. Spot offers in foreign trading (FOB) drop: the fishmeal offer in Peru ordinary SD with 65% protein content stays at USD $1,380 a tonne, and USD $1,540 per tonne for super steam fishmeal with 68% protein content, both down 40 yuan/tonne as compared to last week; the offer in Chile ordinary SD with 65% protein content is USD $1,510 per tonne, USD $1,610 per tonne for excellent fishmeal with 68% protein content, both down 40 yuan/tonne from last week. Given fishmeal prices in the outer go lower, holders prefer to make shipments even though aquatic raising nationwide just stats off, in that fishmeal is to trade weaker in near future.

    Daily review on soybeans: prices for most imported soybeans turn stable amid some declines, where non-GM imported soybean prices at 3,430-4,290 yuan/tonne, some down 30 yuan/tonne from last week, and GM imported soybean keeps flat at 3,650-3,680 yuan/tonne from last Friday.

Since trade dispute between China and the US has trouble settling at the very short time, lingering nerves are still among market participants. Shorter term, imported soybean spots have resistance to fall, instead, probably trade sideways in accordance with market news. If the trade spat is finally resolved, imported soybean will price down further, but price up if heated up, therefore it is necessary to pay close attention to the new progress.

    Daily review on oils: beans ended last Friday night trading lower on CBOT for traders feared that China, the largest soybean importer would curtail its demand for US soybeans after a disappointing talk results between China and the US. Accordingly, oils on DCE rebound mildly today, where domestic soybean oil and palm oil pick up. Still, turnover upon spots is not much though lower basis may attract some deals. Yet, affected by the large-scale machine shutdown in oil mills, soybean crush last week decreased to 1.48 Mln tonnes by 14%, and given great uncertainty in the trade spat under way, crushers’ support for the prices and low ration of oils to meals, oil spots in a shorter term will rebound mildly further tracking futures. However, based on large soybean arrivals in the months ahead and persisting oils glut, oils for the time being are not to rise by leaps and bounds, instead, oils performance is to trade sideways unless United States taxation list has been for two months ended on June 2nd, and the proposed tariffs are launched thereafter if possible. Wisely, buyers may as well make proper replenishment upon bargain hunting rather than chase too high, and balance their positions well. 

    Today's soybean oil: main prices for GB grade-one soybean oil in coastal areas stay at 5,610-5,800 yuan/tonnes, increasing by 20-70 yuan/tonne, (Tianjin traders offer 5,750-5,760 yuan/tonne, Rizhao traders 5,720 yuan/tonne, Zhangjiagang traders 5,800 yuan/tonne, Guangzhou traders 5,610-5,620 yuan/tonne).

    Today's palm oil: 24-degree palm oil prices in coastal areas are mostly between 4,960 and 5,080 yuan/tonne, a rise of 20 yuan/tonne mostly (Tianjin traders offer 5,070-5,080 yuan/tonne, a growth of 20 yuan/tonne; Zhangjiagang traders offer 5,050 yuan/tonne, up 20 yuan/tonne; Guangzhou 4,960-4,970 yuan/tonne; Rizhao traders and Xiamen traders have not reported).

    Daily review on imported rapeseed oil: today, prices for imported rapeseed oil pick up, among which prices in coastal areas are 6,340-6,500 yuan/tonne, increasing by 30-50 yuan/tonne (Basis: Maple in Fangchenggang, Guangxi offers 1809-180; Yinxiang in Xiamen, Fujian offers 1,809-200; Fuzhiyuan in Dongguan, Guangdong offers 6,380 yuan/tonne, up 50 yuan/tonne). More and more oil mills have to idle plants in response to overflowing rapeseed and soybean recently amid a huge loss of pig raising, which therefore boosts oils in market. Whereas, bearish factors like overwhelming glut of oils, large soybean and rapeseed arrivals at ports, and accumulating stockpiles of rapeseed oils still weigh on oils in market, in particular, stockpiles of rapeseed oil in South China and East China last week rose to 56,000 tonnes by 9% and 236,000 tonnes by 5% on the week, respectively. On the whole, rapeseed oil is to move sideways in a near future, and meantime trade spat under way still matters.

    

    Daily review on corn: today, domestic corn prices are stable amid some declines. Corn buying prices in Shandong deep processors mostly stay at 1,820-1,920 yuan/tonne, some down 6-20 yuan/tonne from last Friday. While main purchasing prices offered at Jinzhou port, Liaoning come into at 1,740 yuan/tonne and 1,680 yuan/tonne for old corn, unchanged as opposed to last week. While drying new corn prices of Liaoning and Jilin (moisture ≤ 15%, volume weight 690-700 g/L) at Bayuquan port are pegged at 1,710-1,720 yuan/tonne, and 1,600-1,680 yuan/tonne for old corn, unchanged from last Friday. Corn prices at Shekou port, Guangdong stay at 1,840 yuan/tonne, keeping flat over last Friday. As the traded volume and price premium of reserved corn auctioned last week declined as expected, increased bearish attitude towards the market is mostly seen for the time being. Corn supply in the market is sufficiently large amid gradual flows of corn transacted in market, yet businesses in the downstream on the other hand still keep cautious about corn purchases, such being the case, a pronounced strong supply over demand will sent corn prices down in a near future. Wisely, market participants had better give attention to corn auction all along. 

    Daily review on sorghum and barley: today, prices for imported sorghum fall impressively, among which US sorghum prices at 2,000-2,220 yuan/tonne (US sorghum: Tianjin 2,200-2,220 yuan/tonne in part, being flat; Nantong 2,120 yuan/tonne, being flat; Guangdong 2,060 yuan/tonne, but 2,000-2,020 yuan/tonne upon transaction; Australian sorghum: Tianjin offers 2,450 yuan/tonne, down 50 yuan/tonne, Shandong 2,550 yuan/tonne,down 10 yuan/tonne; domestic sorghum: Heilongjiang and Inner Mongolia both offer 3,000 yuan/tonne). At the same time, prices for imported barley decline, about 1,790-1,930 yuan/tonne (Shandong offers 1,920-1,930 yuan/tonne, down 10 yuan/tonne; Nantong 1,900-1,910 yuan/tonne, down 10 yuan/tonne; Guangdong 1,790-1,810 yuan/tonne, down 10 yuan/tonne). As a fifth round of corn about 8 Mln tonnes flows into market amid previous four-week auctioned corn, corn supply is sufficiently large in market all at once. Falling corn prices still weigh on grains market, particularly, grains like sorghum and barley price down amid light demand in feed sectors. Notably, declining sorghum imports and high costs still give some support and limit the declines, in that market players had better pay attention to latest news for guidance.