Today (on June 12th), trends for Chinese animal and plant protein, oils & oilseeds and grains are shown as follows: 

Plant protein: 

    Daily review on soybean meal: US soybeans ended overnight trading lower for large-scale rainfall in U.S. Midwest boosted soybean production outlook. Accordingly, meals on Dalian Commodity Exchange this morning edge lower, and domestically, soybean meal spots trade down steadily. Thanks to eased declines, lower prices do attract some deals, but overall turnover is not much. Soybean meal prices in coastal areas range from 2,730 to 2,810 yuan/tonne, steadily down 10-30 yuan/tonne (Tianjin prices 2,810 yuan/tonne, Shandong 2,770-2,820 yuan/tonne, Jiangsu 2,800-2,810 yuan/tonne, Dongguan 2,780-2,800 yuan/tonne, Guangxi 2,720-2,770 yuan/tonne, Fujian 2,800-2,810 yuan/tonne). As aquatic raising is delayed by heavy rains in southern areas, stockpiles of soybean meal now are still as high as 1.1 Mln tonnes though down 4% on the week. Oilseeds crushing rises substantially from this day onwards after the end of SCO Summit, which also sends to a pile-up of meals stockpiles. That somehow exerts pressure on soybean meal on the market. June USDA report on World Agriculture Supply and Demand Estimates is to release tonight, and market calculates that ending stocks will be revised downwardly on a small scale, that is to say, there will be limited influences on the market. Instead, market attention should be fixed on the US taxation lists on June 15th to get the point of trade spat under way. If the trade war do break out, there will be a chance for soybean meal to recover and get over current lower prices. Soybean meal, for the present, still trade downside narrowly amid crushers’ support and pronounced eased declines. Generally speaking, market participants had better take USDA report and trade spat under way for guidance and buyers who are out of stock may as well make small replenishment to maintain proper inventory level and take care when chasing bids high. 

    Daily review on imported rapeseed meal: today, imported rapeseed meal prices down, among which prices in coastal areas stand at 2,230-2,380 yuan/tonne, down 20-50 yuan/tonne (Guangxi offers 2,200 yuan/tonne, down 30 yuan/tonne; Guangdong Fuzhiyuan 2,300 yuan/tonne, down 20 yuan/tonne ; Chinatex in Zhangzhou, Fujian 2,340 yuan/tonne, down 40 yuan/tonne). As typhoon “Ewinia” wreaks havoc on fish and shrimp ponds, demand for rapeseed meal is largely lessened. Meantime considerable imported soybean arrivals at ports and large supplies of domestic new rapeseed put down rapeseed meal on the market amid its lifted operation rate in mills. Shorter term, rapeseed meal is to move sideways with futures. Honestly speaking, rapeseed meal prices on the market are probable to rebound if trade tension is heated up, on this point, the US taxation lists on June 15th matter a lot. Buyers who are out of stock had better make small replenishment upon bargain hunting and take care when chasing bids high. 

    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 39,000 tonnes, Fuzhou 32,000 tonnes, Shanghai 39,000 tonnes, Tianjin 1,000 tonnes, Dalian 6,000 tonnes, Fangchenggang 1,000 tonnes, and other ports 4,000 tonnes. Fishing: till June 9th, about 3,029,524 tonnes of fish have been caught in A season of year 2018, accounting for 91.34% of the total volume; fishing quota for this season is 3,316,700 tonnes, among which 287,176 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. Domestic holders show support for the fishmeal prices in view of stable offers in the outer, declining port stocks and strong inclination for higher offers according to Peruvian traders. Consequently, fishmeal is to remain stable shorter term.   

Oils & Oilseeds: 

    Daily review on soybeans: imported soybeans price turn stable today, where non-GM imported soybean prices keep flat at 3,590-4,070 yuan/tonne from yesterday, and GM imported soybean are unquoted. According to Cofeed latest probe, soybean arrival later at ports will be sufficiently large, in detail, soybean arrival of imports are forecast to be 9.127 Mln tonnes with total 142 vessels in May, 2018, a tad higher than 9.042 Mln tonnes attained in last estimates, 9.5495 Mln tonnes in June, higher than last estimates of 9.4 Mln tonne, 9.5 Mln tonnes in July, which poses bearish pressure on market of imported soybeans. Bearish pressure hovers over imported soybeans attributed greatly to the ample supply. Given Shandong and Tianjin ports step up impurities inspection for US soybeans, imported soybeans for distribution on the market are stalled in market transaction. Nevertheless, lingering nerves about trade spat still persist the time no substantial progress has been reached in talks, especially, it is only a couple of days left before the US administration publicizes its taxation lists, scheduled on June 15th. On the whole, imported soybean for distribution shorter term is likely to rebound if there is no big shocks in trade spat, but if the trade war is heated up, US soybeans will be boosted on the market. Therefore, the date (on June 15th) to come matters a lot for Chin-US trade spat. 

    Daily review on oils: US soybeans overnight traded lower for its production is probably bolstered by large-scale rains in growing areas and persisting uncertainty in China-US trade, whereas US soybean oil picked up attributed to rallying crude oil. Reportedly, the state reserves are projected to start auction from June 22nd, in detail, about 50,000 tonnes of soybean oil with 160,000 tonnes in total, and correspondingly, oils on DCE today edge down. Domestically, soybean oil spots trade sideways and palm oil spots move downward. Total turnover is still not much though lower prices may attract some deals. Soybean oil have increased to 1.36 Mln tonnes or so in stockpiles as soybean crush rises substantially after the end of SCO Summit. Additionally, given continuous auction of soybean and soybean oil, supply pressure on oils is seen growing. Therefore, oils shorter term are to trade weak factored in fundamentals. June USDA report on World Agriculture Supply and Demand Estimates is to release tonight, and market calculates that ending stocks will be revised downwardly on a small scale, that is to say, there will be limited influences on the market. Instead, market attention should be fixed on the US taxation lists on June 15th to get the point of trade spat under way. If the trade war do break out, oils performance will be fueled and boosted. Generally, buyers had better take a hand-to-mouth purchasing strategy and take USDA report and trade spat under way for guidance. 

    Today’s soybean oil: main prices for GB grade-one soybean oil in coastal areas stay at 5,530-5,680 yuan/tonne, a variation of 10-20 yuan/tonne (Tianjin traders offer 5,610-5,620 yuan/tonne, Rizhao traders 5,600 yuan/tonne, Zhangjiagang traders 5,680 yuan/tonne, Guangzhou traders 5,530 yuan/tonne). 

    Today’s palm oil: 24-degree palm oil prices in coastal areas are mostly between 4,880 and 4,990 yuan/tonne, down 10-40 yuan/tonne (Tianjin traders offer 4,960-4,970 yuan/tonne, down 10 yuan/tonne; Rizhao offer 4,980-4,990 yuan/tonne, down 40 yuan/tonne; Zhangjiagang traders offer 4,950 yuan/tonne; Guangzhou 4,880 yuan/tonne; Xiamen traders 5,040 yuan/tonne, down 10 yuan/tonne). 

    Daily review on imported rapeseed oil: today, prices for imported rapeseed oil keep firm, among which prices in coastal areas are 6,520-6,620 yuan/tonne (Basis: Maple in Fangchenggang, Guangxi offers 1809-200, Yinxiang in Xiamen, Fujian stops to quote; Shenheng in Dongguan, Guangdong offers 1809-200). Though falling stockpiles of rapeseed oil give favorable support to its market-- about 267,000 tonnes in East China last week with a reduction of 3% on the week, such bearish factors still hover above rapeseed oil as ample imported soybean and rapeseed oil arrivals and sufficient soybean oil supply, already large supplying of domestic rapeseed on market. Heavy supplies of soybean oil and rapeseed oil mainly derive from state auction from June 22nd, in detail, about 50,000 tonnes of soybean oil reserved in the first stage with 160,0000 tonnes in total, and more than 200,000 tonnes of rapeseed oil. That no doubt send rapeseed oil prices to trade sideways in shorter term tracking futures, therefore buyers are suggested to take a hand-to-mouth buying strategy. Yet, frankly speaking, rapeseed oil on the market is probably to be bolstered if trade tension is heated up, on this point, the US taxation lists on June 15th matter a lot. 

Grains:   

    Daily review on corn: today, prices for domestic move sideways steadily and narrowly. Corn buying prices in Shandong deep processors mostly stay at 1,820-1,920 yuan/tonne, yet some are mixed with a variation of 4-10 yuan/tonne. While main purchasing prices offered at Jinzhou port, Liaoning come into at 1,720 yuan/tonne (volume weight 700 g/L), and 1,695 yuan/tonne for old corn (volume weight 700 g/L), unchanged from yesterday. 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; 1,740 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 yesterday. New corn prices at Shekou port, Guangdong stay at 1,860 yuan/tonne, 1,820-1,830 yuan/tonne for second-class old corn, unchanged from yesterday. In general, approximately 8 Mln tonnes of corn reserved are to auction each month, and with delivery time for first-stage corn auctioned around the corner supply pressure is still considerable for corn used for feed ingredient is still slow in demand on grounds of fragile feed demand in the fish breeding and poultry raising. In this case, corn prices in shorter term are still dragged down. Whereas, opening bid for grain of year 2015 are 50 yuan/tonne higher than that of year 2014 when businesses have rigid demand for grain of good quality, additionally, costs of delivery and freight also give support to corn prices. That is to say, corn prices are not to fall a lot, and frankly, attention should still be paid to corn transaction and delivery.  

    Daily review on sorghum and barley: today, imported sorghum prices at ports keep stable, among which US sorghum prices basically come into at 1,820-2,080 yuan/tonne (US sorghum: Tianjin 2,080 yuan/tonne; Nantong 1,900-1,930 yuan/tonne, being flat; Guangdong 1,820-1,830 yuan/tonne; Australian sorghum: Tianjin offers 2,240-2,280 yuan/tonne; Shandong 2,330-2,350 yuan/tonne; Shanghai 2,300 yuan/tonne; domestic sorghum: Heilongjiang offer 2,960 yuan/tonne for dried sorghum; Qiqihar offers 2,800 yuan/tonne for sorghum of poorer quality; Chifeng in Inner Mongolia offer 3,000 yuan/tonne for dried sorghum; Jilin 2,700 yuan/tonne for raw sorghum; Weinan in Shaanxi 3,300 yuan/tonne for dried sorghum, Hebei 3,000 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). Most feed businesses take a hand-to-mouth buying strategy for the reason of sluggish pigs raising. That also drags down sales of corn alternatives, sorghum and barley. 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. Generally, port grain on the domestic market is weighed down. 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 amid mixed long and short positions. Grain prices keep firm and shorter term will probably move downward, therefore market participants may as well keep an eye on. 

(USD $1=CNY 6.40)