Today (on June 4th), trends for Chinese animal and plant protein, oils & oilseeds and grains are shown as follows: 

    Daily review on soybean meal: US soybeans rebounded slightly last Friday under the technical adjustment. Trade talks between China and the US last weekend made little progress, as a consequence, soybeans on the Globex today continue to drop, while meals on DCE pick up. Domestically, soybean meal spots vibrate steadily, and some lower prices still attract deals though overall turnover is general. Soybean meal prices in coastal areas range from 2,860 to 2,980 yuan/tonne, a steady fluctuation of 10-20 yuan/tonne against last week (Tianjin prices 2,980 yuan/tonne, Shandong 2,920-2,980 yuan/tonne, Jiangsu 2,960-2,980 yuan/tonne, Dongguan 2,900-2,930 yuan/tonne, Guangxi 2,850-2,920 yuan/tonne, Fujian 2,860-2,880 yuan/tonne). Soybean crush will rise steeply after the SCO Summit based on as high as estimated 9.54 Mln tonnes and 9.5 Mln tonnes of soybean arrivals in June and July, respectively. On one hand, fundamental pressure like low pigs raising amid heavy losses still weighs on meals prices. On the other hand, lowered operation rate during SCO Summit, grave soybean losses in Brazil and possibly fierce weather speculation for US soybeans during July and August period may somehow raise prices for soybean meal, if such, soybean meal prices shorter term are hard to fall impressively, but to move sideways mainly tracking futures amid crushers’ optimistic attitude towards meals selling. Buyers may as well take a hand-to-mouth purchasing strategy or make proper replenishment rather than chase high bids. 

    Daily review on imported rapeseed meal: today, imported rapeseed meal keeps steadily rangebound, where prices in coastal areas stay at 2,350-2,450 yuan/tonne with a fluctuation of 10-30 yuan/tonne (Guangxi offers 2,350 yuan/tonne, down 30 yuan/tonne; Fuzhiyuan in Dongguan, Guangdong 2,450 yuan/tonne; Chinatex in Zhangzhou, Fujian 2,450 yuan/tonne, being flat). Such bearish factors still govern meals market as accumulating rapeseed meal stocks, narrowed price gap between soybean meal and rapeseed meal, assured operation rate based on large rapeseed and soybean at ports, and new rapeseed to supply the domestic market in most areas. That enlarged price gap subdues demand for rapeseed meal even though supply is assured for rapeseed meal in South China last week rose to 48,000 tonnes by 11% on the week. Notwithstanding, upcoming golden time for aquatic raising, higher costs and estimated weather speculation may somehow give the support to its market. Generally speaking, rapeseed meal shorter term is to move sideways narrowly tracking futures, therefore buyers are recommended to take a hand-to-mouth purchasing strategy. 

    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 Peru ordinary SD with 65% protein content is 9,600-9,800 yuan/tonne; 10,900-11,200 yuan/tonne for Japanese SD with 67% protein content; 11,800 yuan/tonne for super steam fishmeal with 68% protein content. Southern ports: fishmeal price for ordinary SD with 65% protein content in Peru is 10,000 yuan/tonne; 11,000 yuan/tonne for Japanese SD with 67% protein content; 12,000 yuan/tonne for super steam fishmeal with 68% protein content. Port stocks: Hangpu has 43,000 tonnes, Fuzhou 34,000 tonnes, Shanghai 43,000 tonnes, Tianjin 1,000 tonnes, Dalian 4,000 tonnes, Fangchenggang 1,000 tonnes, and other ports 4,000 tonnes. Fishing: till May 31st, about 2,647,662 tonnes of fish have been caught in A season of year 2018, accounting for 79.83% of the total volume; fishing quota for this season is 3,316,700 tonnes, among which 669,038 tonnes remain unfinished. Spots offers (FOB) in the outer remain stable, in detail, the fishmeal offer for Peru's ordinary SD with 65% protein content stays at USD $1,360 per tonne, USD $1,530 per tonne for super steam fishmeal with 68% protein content; the offer for 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. Holders at China's ports have strong mindset to support fishmeal prices for its stable offers in the outer, additionally, slightly sapping stockpiles and higher costs of new-season fishmeal at ports also give favorable support to its market, such being the case, fishmeal is to remain stable for the time being. 

Oils & Oilseeds: 

    Daily review on soybeans: prices for most imported soybeans turn stable, where non-GM imported soybean prices keep flat at 3,550-3,730 yuan/tonne from last Friday, and GM imported soybean also stays at 3,610 yuan/tonne. According to Cofeed latest probe, soybean arrival later at ports will be sufficiently large, in detail, soybean arrival of imports are forecast to be 9.042 Mln tonnes with total 141 vessels in May, 2018 9.4 Mln tonnes in June, 9.5 Mln tonnes in July. Though bearish pressure hovers over imported soybeans attributed greatly to the ample supply, As Shandong and Tianjin ports step up impurities inspection for US soybeans, imported soybeans for distribution on the market are stalled and are possibly weighed down in the near future. However, as U.S. soybeans enter the critical period of growth, weather speculation therewith may easily come into. That is to say, if weather woes do happen in US growing areas, imported soybeans will be fueled and boosted on the market given Argentine soybean production has cut by surprisingly 20 Mln tonnes. 

    Daily review on oils: US soybeans and soybean oil last Friday night edged up attributed to technical buying and active arbitrage of buying soybean oil and selling soybean meal, while US soybean meal is downwardly revised after early gains. Accordingly, oils on DCE jump significantly after high opens, and domestically soybean oil and palm oil spots trade up tracking futures. As bloated soybean meal and SCO Summit send operation rate to a low level, speculative investments went to rapeseed oil last week, which gives favorable support to soybean oil and palm oil today. Yet, operation rate will soon recover to a normal level after the SCO Summit assured by sufficiently large soybean arrivals in June (9.54 Mln tonnes) and July (9.5 Mln tonnes), soybean oil thereby will pile up. That overwhelmingly large supply over demand will put a cap on its potential rallies when uncertainty between China-US trade woes still lurks on market seeing little substantial progress in the trade talks during the weekend. Otherwise, lucrative import margins of Canada's rapeseed oil have triggered Chinese importers buying enthusiasm. To be specific, rapeseed oil futures domestically pare gains, also dragging down soybean oil and palm oil. Generally speaking, oils spots now trade sideways in line with futures, and a series of declines may come back after short-lived rallies. Wisely, market participants had better maintain a light position level instead of chasing bids high. 

    Today's soybean oil: main prices for GB grade-one soybean oil in coastal areas stay at 5,700-5,830 yuan/tonnes, increasing by 30-80 yuan/tonne (Tianjin traders offer 5,780 yuan/tonne, Rizhao traders 5,780 yuan/tonne, Zhangjiagang traders 5,830 yuan/tonne, Guangzhou traders 5,700 yuan/tonne). 

    Today's palm oil: 24-degree palm oil prices in coastal areas are mostly between 5,020-5,130 yuan/tonne, most increasing by 10-40 yuan/tonne (Tianjin traders offer 5,120-5,130 yuan/tonne, a rise of 40 yuan/tonne; Huanghai in Rizhao P1809+60; Zhangjiagang traders offer 5,120 yuan/tonne, a rise of 40 yuan/tonne; Guangzhou traders 5,020 yuan/tonne; Xiamen 5,120 yuan/tonne, a rise of 10 yuan/tonne). 

    Daily review on imported rapeseed oil: today, prices for imported rapeseed oil rise, among which prices in coastal areas are 6,740-6,880 yuan/tonne, rising by 20-50 yuan/tonne (Basis: Maple in Fangchenggang, Guangxi offers 1809-200, Yinxiang in Xiamen, Fujian offers 1,809-220; Shenheng in Dongguan, Guangdong offers 1809-200). Accumulating stockpiles put rapeseed oil performance under pressure, in detail, rapeseed oil last week in South China and East China climbed to 70,000 tonnes by 12% and 279,000 tonnes by 22% on the week, respectively. Generally, turnover of rapeseed oil recently is rather pale when price gap between rapeseed oil and soybean oil expands. Furthermore, given sufficiently large arrivals of imported soybeans, rapeseed and rapeseed oil, new rapeseed supplying in most areas nationwide, rapeseed oil may price down in line with futures and trade sideways frequently onwards. 

    Daily review on corn: today, prices for most domestic corn remain stable though some are a tad lower. Corn buying prices in Shandong deep processors mostly stay at 1,820-1,920 yuan/tonne, some further down 6-12 yuan/tonne. While main purchasing prices offered at Jinzhou port, Liaoning come into at 1,730 yuan/tonne, and 1,710 yuan/tonne for old corn, both unchanged from last week. While drying corn prices of Liaoning and Jilin (moisture ≤ 15%, volume weight 700 g/L) at Bayuquan port are pegged at 1,720 yuan/tonne; 1,760-1,770 yuan/tonne for naturally drying corn (moisture 14.5%, volume weight 720-740 g/L); 1,600-1,710 yuan/tonne for old corn (volume weight 650-720 g/L, mildew 3-4), all unchanged from last week. Corn prices at Shekou port, Guangdong stay at 1,860 yuan/tonne, 1,830-1,840 yuan/tonne for second-class old corn, unchanged from last week. Sales pressure on old grain is still considerable for only 30 percent of grain auctioned is traded even though corn auction becomes a normality, and there being said, grains supplying keep larger and larger amid accumulated pressure on sales when some traders step up grains selling to leave room for barley seeing approaching barley harvest in North China and Huanghuai areas from south to the north. Otherwise, businesses in the downstream take a more cautious approach toward grain buying when outlook of feed industry is not such promising, corn demand thereby in end users is still sluggish. Whereas, gains of good quality are short of supply on the market, such being the case, corn prices shorter term are hard to fall and may probably move sideways around the range for corn of good quality has the advantage in auction and freight costs in northeastern areas are also on the rise amid logistic tension the time market has rigid demand for good quality. Wisely, traders had better take a rational approach toward corn auction and keep an eye on the auction onwards amid its risks and uncertainties. 

    Daily review on sorghum and barley: today, prices for imported sorghum at ports keep firm amid declines, among which US sorghum prices basically come into at 1,840-2,080 yuan/tonne (US sorghum: Tianjin 2,080 yuan/tonne; Nantong 1,930-1,950 yuan/tonne; Guangdong 1,840 yuan/tonne, down 40 yuan/tonne; Australian sorghum: Tianjin offers 2,240-2,280 yuan/tonne; Shandong 2,330-2,350 yuan/tonne, both being flat; domestic sorghum: Heilongjiang offer 2,960 yuan/tonne for dried sorghum; Chifeng in Inner Mongolia offer 3,000 yuan/tonne for dried sorghum; Jilin 2,720 yuan/tonne for raw sorghum, down 20 yuan/tonne; Weinan in Shaanxi 3,300 yuan/tonne for dried sorghum, being flat). Prices for Australian barley keep steady at about 1,800-2,000 yuan/tonne (Tianjin offers 1,980-2,000 yuan/tonne; Shandong offers 1,900-1,910 yuan/tonne, down 10 yuan/tonne; Nantong 1,880-1,900 yuan/tonne; Guangdong 1,800-1,810 yuan/tonne; Canadian barley: Nantong 1,880 yuan/tonne, being flat). Feed consumption in end users shows little signs to go better for one thing that prices for pork remain low amid sluggish pigs raising and for another that increasing supply of germinant wheat may squeeze out feed demand for domestic corn. Barley and sorghum, as alternative feed ingredient of corn will therefore be weighed down as well when there is no comparative price competitiveness. On this point, stocks consumption at ports is quite low the time wineries gradually suspend operation in the production cycle and businesses have little buying enthusiasm. Whereas, importers mostly order grain of higher prices in early stage, that is to say, higher costs would still somehow give support to the market. Grain prices shorter term will probably move downward, therefore market participants may as well take latest news for guidance.