Today (on June 14th), trends for Chinese animal and plant protein, oils & oilseeds and grains are shown as follows:
Plant protein:
Daily review on soybean meal: US soybeans overnight on CBOT reached the nadir in recent nine months under the worrisome trade tension between China and the US, while meals on DCE today trade up, with which domestic soybean meal spots price up, and turnover upon lower prices is general. Soybean meal prices in coastal areas range from 2,750 to 2,830 yuan/tonne, up 10-30 yuan/tonne from yesterday (Tianjin prices 2,840 yuan/tonne, Shandong 2,810-2,830 yuan/tonne, Jiangsu 2,820-2,840 yuan/tonne, Dongguan 2,800-2,820 yuan/tonne, Guangxi 2,780-2,800 yuan/tonne, Fujian 2,790-2,820 yuan/tonne). As SCO Summit comes to an end, oilseeds processing rate rises substantially backed by large soybean arrivals at ports. Whereas, bearish fundamentals still weigh on soybean meal prices as heavy rains in southern areas delay aquatic raising. Notably, market attention is still fixed on US final taxation lists on June 15th, if proven, China is likely to add equivalent tariffs in response. That soybean meal on market will be bolstered provided if trade war breaks out. Wisely, buyers are suggested to make replenishment upon bargain hunting and maintain proper inventory in the midst of enlarged risks in trade spat.
Daily review on imported rapeseed meal: today, imported rapeseed meal keep rangebound, among which prices in coastal areas stand at 2,230-2,340 yuan/tonne, a variation of 20-30 yuan/tonne (Guangxi offers 2,230 yuan/tonne, up 30 yuan/tonne; Guangdong Fuzhiyuan 2,280 yuan/tonne, down 20 yuan/tonne ; Chinatex in Zhangzhou, Fujian 2,340 yuan/tonne, unchanged). Heavy rains day after day in Guangdong and Guangxi provinces indeed wreak havoc on southern aquaculture, leading to a delayed feed consumption, and meantime lifted operation rate helped by sufficient large imported soybeans and new rapeseed also drags down rapeseed meal on the market. Traded volume of rapeseed meal yesterday amounted to 20,000 tonnes when its price reached the bottom. But with crushers’ support, rapeseed meal has limited downward potential and shorter term is to trade sideways narrowly tracking futures. Frankly speaking, an escalating trade war between two largest economies, if possible on June 15th, will give support to meals prices. Buyers for the present had better maintain a proper inventory level and take care if chasing 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 38,000 tonnes, Fuzhou 31,000 tonnes, Shanghai 38,000 tonnes, Tianjin 1,000 tonnes, Dalian 6,000 tonnes, Fangchenggang 1,000 tonnes, and other ports 4,000 tonnes. Fishing: till June 11th, about 3,044,905 tonnes of fish have been caught in A season of year 2018, accounting for 91.81% of the total volume; fishing quota for this season is 3,316,700 tonnes, among which 271,795 tonnes remain unfinished. Spots offers (FOB) in the outer go steadily, in detail, the fishmeal offer for Peru's ordinary SD with 65% protein content stays at USD $1,360 per tonne, USD $1,580 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 and declining port stocks domestically. 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. Market attention is still fixed on US taxation lists on June 15th, for US soybean on market will be bolstered provided if trade war breaks out, so do other imported soybeans on the domestic market. Therefore, the date (on June 15th) to come matters a lot for Chin-US trade spat.
Daily review on oils: US soybeans overnight plunged to almost nine-month low with market concerns about trade tension between China and the US, while oils on DCE today trade up, with which soybean oil and palm oil spots on the domestic market rebound. Traded volume yesterday was improved as buyers replenished stockpiles upon bargain buying in case of escalating trade spat, accordingly, turnover upon lower prices today is still promising. As SCO Summit comes to an end, oilseeds operation rate rises substantially backed by ongoing auction of soybean and soybean oil reserved, large soybean arrivals at ports in June and July. Even though bearish fundamentals still weigh on soybean meal, market attention is still fixed on US final taxation lists on June 15th, if proven, China is likely to pose equivalent tariffs on US goods in response. That oils on market will be fueled if trade war breaks out amid not many stockpiles in midstream and downstream. Wisely, buyers are suggested to make replenishment upon bargain hunting and maintain safe inventory.
Today’s soybean oil: main prices for GB grade-one soybean oil in coastal areas stay at 5,460-5,600 yuan/tonne, up 10-30 yuan/tonne (Tianjin traders offer 5,540-5,550 yuan/tonne, Rizhao traders 5,550 yuan/tonne, Zhangjiagang traders 5,600 yuan/tonne, Guangzhou traders 5,460-5,470 yuan/tonne).
Today’s palm oil: 24-degree palm oil prices in coastal areas are mostly between 4,790 and 4,910 yuan/tonne, up 10-40 yuan/tonne (Tianjin traders offer 4,860-4,870 yuan/tonne, up 10 yuan/tonne; Rizhao traders offer 4,910 yuan/tonne, up 10 yuan/tonne; Zhangjiagang traders offer 4,860 yuan/tonne, up 40 yuan/tonne; Guangzhou 4,790 yuan/tonne;Xiamen traders stop to report).
Daily review on imported rapeseed oil: today, prices for imported rapeseed oil drop, among which prices in coastal areas are 6,470-6,560 yuan/tonne, down 30-50 yuan/tonne (Basis: Maple in Fangchenggang, Guangxi offers 1809-200, Yinxiang in Xiamen, Fujian stops to quote; Shenheng in Dongguan, Guangdong offers 1809-200). Supply pressure on oils is seen greater and greater on grounds of large stocks of soybean oil and rapeseed oil, ongoing auction of soybeans reserved and soybean oil and upcoming auction of rapeseed oil. That considerable pressure together with sufficiently large imported soybeans and rapeseed later at ports hovers over rapeseed oil, as a consequence, its prices are to move sideways frequently tracking futures. US taxation lists on June 15th are under the spotlight, for rapeseed oil on market will be bolstered provided if trade war breaks out. Wisely, buyers are suggested to make replenishment upon bargain buying when prices go steady.
Grains:
Daily review on corn: today, prices for domestic mostly keep firm amid some marginal variations. Corn buying prices in Shandong deeprocessors mostly stay at 1,820-1,920 yuan/tonne, yet some up 10 yuan/tonne from yesterday. 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 1,850 yuan/tonne, down 10 yuan/tonne from yesterday; 1,820-1,830 yuan/tonne for second-class old corn, unchanged from yesterday. In general, approximately 8 Mln tonnes of corn reserved are auctioned each month, and with time for first-stage corn auctioned to cash in around the corner, supply pressure is still considerable for corn used for feed ingredient is still slow in the fish breeding and poultry raising, so does for industrial use. In this case, corn prices in shorter term are still dragged down. Whereas, auction for grain of year 2015 takes priority when businesses have rigid demand for grain of good quality, additionally, raised costs of delivery also give support to corn prices. That is to say, corn prices shorter term are not to fall and rise a lot, but to keep rangebound narrowly and steadily. Attention should still be paid to corn transaction and delivery.
Daily review on sorghum and barley: today, imported sorghum prices at ports fall impressively, among which US sorghum prices basically come into at 1,820-2,080 yuan/tonne (US sorghum: Tianjin 2,030 yuan/tonne, down 50 yuan/tonne, some prices are negotiable upon transaction; Nantong 1,900 yuan/tonne, down 30 yuan/tonne; Guangdong 1,810-1,830 yuan/tonne, down 10 yuan/tonne. Australian sorghum: Tianjin offers 2,210-2,230 yuan/tonne, down 50 yuan/tonne; Shandong 2,300-2,330 yuan/tonne, down 20 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; Yancheng 1,880 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 amid low hogs and reproducible sows raising in unprofitable pigs industry. That also drags down sales of corn alternatives, sorghum and barley when they have no competitiveness in prices. In addition, businesses have little buying enthusiasm seeing ample stockpiles though wineries gradually suspend operation in the production cycle. Generally, grain like sorghum on the domestic market is largely weighed down and shorter term is to trade weak. Yet, by comparison, barley has more advantage over sorghum for higher CNF of barley will still give support to the market.
(USD $1=CNY 6.41)
