Daily review on soybean meal: US soybeans edged lower last night, followed by meals on DCE today, for US soybean production is promising when its growth ranking good accounts for more than 75%. Domestically, soybean meal spots go stable amid some declines, and turnover is not much. Soybean meal prices in coastal areas range from 2,850 to 2,950 yuan/tonne, a steady fluctuation of 10-20 yuan/tonne against yesterday (Tianjin prices 2,950 yuan/tonne, Shandong 2,890-2,940 yuan/tonne, Jiangsu 2,940-2,950 yuan/tonne, Dongguan 2,880-2,900 yuan/tonne, Guangxi 2,850-2,900 yuan/tonne, Fujian 2,850-2,870 yuan/tonne). After the SCO Summit, operation rate will soon rise steeply based on considerable soybean arrivals at ports. Yet, heavy stockpiles still weigh on soybean meal when pigs raising is in the red. As U.S. soybeans enter the critical period of growth in the mid-to-late June, weather speculation therewith may be common amid surprising soybean reduction in Argentina. Such being the case, US soybeans will be on a strong note in the long term but relatively weak in the near. And it's said that US President Trump is to discuss with trade consultants about the ongoing trade spat with China. If nothing is reached between two largest economists, escalating trade tensions will be a favorable factor for soybean meal rallies especially when the US implements its proposed tariffs on Chinese goods after June 15th. Therefore, market participants had better not hold an definitely bearish attitude toward soybean meal prices in the after market given possible limited space to drop further. Wisely, buyers may as well stand on the sidelines, and make proper replenishment when prices go stable.  

    Daily review on imported rapeseed meal: today, imported rapeseed meal prices down, where prices in coastal areas stay at 2,300-2,450 yuan/tonne with a reduction of 10-20 yuan/tonne (Guangxi offers 2,300 yuan/tonne, down 20 yuan/tonne; Fuzhiyuan in Dongguan, Guangdong 2,400 yuan/tonne, down 20 yuan/tonne; Chinatex in Zhangzhou, Fujian 2,450 yuan/tonne, being flat). Narrowed price gap between soybean meal and rapeseed meal and relatively high stocks of soybean meal overshadow demand for rapeseed meal. As a consequence, some feed businesses revise the ratio of rapeseed meal used in feed ingredient downward to 10% from prior 15-17%. In addition, probably improved operation rate based on large rapeseed and soybean at ports, and intensive supply of domestic new rapeseed weigh on meals performance. Whereas, with hot days coming, recovered demand for meals in golden-time aquatic raising to come may somehow limit its declines. Generally speaking, rapeseed meal shorter term is to move sideways narrowly tracking futures. Therefore, market participants should show concern about trade spat under way, for if no agreement is reached before the US announces the proposed list on June 15th, the heated-up trade tension will boost rapeseed meal prices. Buyers are suggested to stand on the sidelines, and make proper replenishment when prices go stable. 

    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 42,000 tonnes, Fuzhou 33,000 tonnes, Shanghai 42,000 tonnes, Tianjin 1,000 tonnes, Dalian 5,000 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 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. In recent days, port stocks have declined in wake of good sales and not many port arrivals. And in the event that fishmeal of higher quality is quite few, holders show support for the prices with goods generally concentrated on the market, in the case, fishmeal is to remain stable shorter term. 

    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 yesterday, 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, which poses bearish pressure on market of imported soybeans. Given Shandong and Tianjin ports step up impurities inspection for US soybeans, imported soybeans for distribution on the market are stalled. And as U.S. soybeans enter the critical period of growth in the mid-to-late June, weather speculation therewith may be common amid surprising soybean reduction in Argentina. Notably, no substantial progress was made between US-China talks over the weekend, and if it goes forward, trade tensions will be heated up especially when the US implements its proposed tariffs on Chinese goods. That will no doubt give favourable support to market of imported soybean. 

    Daily review on oils: US soybeans overnight moved sideways narrowly amid uncertainty in US-China trade issue, correspondingly, oils on DCE today significantly slow down its falling pace though still on the track of declining. Domestically, soybean oil and palm oil spots in part price down, and turnover is not much. According to the news, large speculative funds flow somewhere else when the regulatory agencies strengthen checks on the allocation of funds, hence rapeseed oil futures on Zhengzhou Commodity Exchange tumble a lot, which also drags down soybean oil and palm oil futures. Fragile demand for oils in end users actually sends soybean oil stockpiles up to 1.34 Mln tonnes, and with the end of the Summit, operation rate will be lifted greatly based on as high as average 9.5 Mln tonnes of soybean arrivals in June and July, if such, oils spots will be under pressure and probably remain weak. Whereas, uncertainty in worrisome US-China trade may give support to oils market to some extent. That is to say, a seemingly heated-up trade tension, if no agreement is reached, will boost oils prices on the domestic market. Therefore, market participants had better stand on the sidelines and make proper replenishment when prices go stable. 

    Today's soybean oil: main prices for GB grade-one soybean oil in coastal areas stay at 5,600-5,750 yuan/tonne, down 10-30 yuan/tonne in part, (Tianjin traders offer 5,690-5,700 yuan/tonne, Rizhao traders 5,680 yuan/tonne, Zhangjiagang traders 5,750 yuan/tonne, Guangzhou traders 5,600-5,620 yuan/tonne).    

    Today's palm oil: 24-degree palm oil prices in coastal areas are mostly between 4,960 and 5,080 yuan/tonne, most declining by 10-30 yuan/tonne (Tianjin traders offer 5,030-5,040 yuan/tonne, a drop of 20 yuan/tonne; Rizhao offer 5,080 yuan/tonne, down 10 yuan/tonne; Zhangjiagang traders offer 5,000 yuan/tonne, a decline of 30 yuan/tonne; Guangzhou 4,960 yuan/tonne; Xiamen traders have not reported).  

    Daily review on imported rapeseed oil: today, prices for imported rapeseed oil drop marginally, among which prices in coastal areas are 6,580-6,690 yuan/tonne, down 10-30 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). Demand for rapeseed oil is terribly subdued after its rallying prices, and eventually stocks are seen substantially piling up, where rapeseed oil climbs to 0.35 Mln tonnes by 19% on the week in East China and South China. And as import margins for Canada's rapeseed oil turn lucrative, Chinese traders are now inclined to selling rapeseed oil futures domestically and importing Canada's. That no doubt dampens down its futures on Zhengzhou Commodity Exchange and other oils future, which coincides with strengthened checks by regulatory agencies on funds allocation. Furthermore, rapeseed oil is to price down in line with futures shorter term in light of sufficiently larges soybeans, rapeseed and rapeseed oil of imports in the months ahead. Furthermore, domestic new rapeseed is now supplying in most areas. Notwithstanding, if trade spat goes severer after the US administration announce its proposed lists after June 15th, rapeseed oil on the domestic market is probable to price up. 

    Daily review on corn: today, most domestic corn prices remain stable where 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 yuan/tonne from yesterday. While main purchasing prices offered at Jinzhou port, Liaoning come into at 1,730 yuan/tonne (volume weight 690-700 g/L), and 1,705 yuan/tonne (volume weight 690-700 g/L) for old corn. 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). 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 yesterday. Albeit grain supply later will become greater and greater as corn auction becomes a normality-- another 8 Mln tonnes will be put into market this week, languishing and limited demand in feed businesses and corn-use industry weigh down corn prices. Whereas, grain of good quality are basically short of supply, such being the case, corn prices shorter term are hard to fall, and may probably move sideways around the range given delivery costs also give the support. 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, imported sorghum prices at ports turn stable, among which US sorghum prices basically come into at 1,820-2,080 yuan/tonne (US sorghum: Tianjin 2,080 yuan/tonne; Nantong 1,930-1,950 yuan/tonne; Guangdong 1,820-1,830 yuan/tonne; Australian sorghum: Tianjin offers 2,240-2,280 yuan/tonne; Shandong 2,330-2,350 yuan/tonne; 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; Weinan in Shaanxi 3,300 yuan/tonne for dried sorghum, all being flat). Prices for Australian barley keep steady, ranging from 1,800 to 2,000 yuan/tonne (Tianjin offers 1,980-2,000 yuan/tonne; Shandong offers 1,900-1,910 yuan/tonne; Nantong 1,880-1,900 yuan/tonne; Jiangyin 1,890 yuan/tonne; Guangdong 1,790-1,800 yuan/tonne; Canadian barley: Nantong 1,880 yuan/tonne; French barley: Nantong 1,870 yuan/tonne). Feed consumption in end users shows little signs to go better for the reason that prices for pork remain low amid sluggish and declining pigs raising. 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 and sky-high CNF for Australian barley would still somehow give support to the market. Grain prices go stable today amid mixed short and long positions and shorter term will probably move downward, therefore market participants may as well take latest news for guidance.