Today (on June 13th), trends for Chinese animal and plant protein, oils & oilseeds and grains are shown as follows: 

    Daily review on soybean meal: US soybeans overnight on CBOT rebounded mildly attributed to somewhat bullish USDA report about world supply and use estimates, followed by rallying meals today on DCE. Yet soybeans today on the Globex fall to 10 cents, correspondingly, soybean meal spots domestically move sideways steadily and show little vitality to rebound. Albeit lower prices partially do attract some deals , turnover is still not much.Soybean meal prices in coastal areas range from 2,750 to 2,820 yuan/tonne, steadily fluctuating by 10-30 yuan/tonne (Tianjin prices 2,810 yuan/tonne, Shandong 2,780-2,820 yuan/tonne, Jiangsu 2,800-2,810 yuan/tonne, Dongguan 2,780-2,800 yuan/tonne, Guangxi 2,750-2,780 yuan/tonne, Fujian 2,780-2,810 yuan/tonne). US soybeans are now under pressure on grounds of good weather conditions in crop growing areas and high rate of good soybean prospects. 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 typhoon and heavy rains in southern areas delay aquatic raising. Notably, market attention is still fixed on US taxation lists on June 15th, for soybean meal on market will be bolstered provided if trade war breaks out. Wisely, buyers are suggested to stand on the sideways or take a hand-to-mouth purchasing strategy. 

    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 39,000 tonnes, Fuzhou 32,000 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 3,042,345 tonnes of fish have been caught in A season of year 2018, accounting for 91.73% of the total volume; fishing quota for this season is 3,316,700 tonnes, among which 274,355 tonnes remain unfinished. Spots offers (FOB) in the outer rise 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, up $50 from yesterday; 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 increased offers in the outer, declining port stocks. Consequently, fishmeal is to remain stable shorter term.

    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 and soybean meal ended overnight trading higher on conditions that ending stocks of US soybeans were revised downwardly according to USDA. Futures on Bursa Malaysia Derivatives Tuesday dropped by over one percent, reaching the lowest in recent two years, as government there decides to keep export duties unchanged in July, on this point, increased supply of soybean oil and sluggish exports of palm oil then drag down US soybean oil largely. Accordingly, oils on DCE today fall substantially, with which domestic soybean oil and palm oil spots are also weighed down. Turnover is still not much though big price cuts do attract some deals. Reportedly, about 0.3 Mln tonnes of soybeans will be auctioned tomorrow by state reserves, followed by approximately 0.5 Mln tonnes of soybean oil next Thursday. Soybean oil have increased to 1.36 Mln tonnes or so in stockpiles as soybean crush rises substantially after the end of SCO Summit backed by sufficient soybean arrivals during June and July period, and additionally, more than 0.45 Mln tonnes of palm oil will arrive at ports in June and September on average. That considerable supply will put pressure on oils and weigh down oils on the market. 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 for a while. Generally, buyers had better stand on the sideways for the moment and make replenishment upon bargain buying when prices go steady.

    Today’s soybean oil: main prices for GB grade-one soybean oil in coastal areas stay at 5,450-5,550 yuan/tonne, down 50-100 yuan/tonne (Tianjin traders offer 5,520-5,530 yuan/tonne, Rizhao traders 5,520 yuan/tonne, Zhangjiagang traders 5,550 yuan/tonne, Guangzhou traders 5,450 yuan/tonne). 

    Today’s palm oil: 24-degree palm oil prices in coastal areas are mostly between 4,790 and 4,870 yuan/tonne, down 80-110 yuan/tonne (Tianjin traders offer 4,850-4,970 yuan/tonne, down 110 yuan/tonne; Zhangjiagang traders offer 4,820 yuan/tonne, down 80 yuan/tonne; Guangzhou 4,790 yuan/tonne; Rizhao and 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 narrowly tracking futures. US taxation lists on June 15th are under the spotlight, fo 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. 

    Daily review on corn: today, prices for domestic mostly keep firm amid some marginal variations. Corn buying prices in Shandong deep processors mostly stay at 1,820-1,920 yuan/tonne, yet up 10 yuan/tonne only in Linqing. 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. New corn prices at Shekou port, Guangdong stay at 1,860 yuan/tonne, 1,820-1,830 yuan/tonne for second-class old corn, both unchanged from yesterday. In general, approximately 8 Mln tonnes of corn reserved are auctioned 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 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 keep stable, among which US sorghum prices basically come into at 1,820-2,080 yuan/tonne (US sorghum: Tianjin 2,080 yuan/tonne, some prices are negotiable upon transaction; 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; 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 for the reason of sluggish and unprofitable pigs raising. That also drags down sales of corn alternatives, sorghum and barley when they have no competitiveness in prices. On this point, grain consumption at ports mainly comes from stockpiles the time wineries gradually suspend operation in the production cycle and businesses have little buying enthusiasm. Generally, grain like sorghum on the domestic market is weighed down. Whereas, higher CNF for sorghum and barley will still give support to the market amid mixed long and short positions. Grain prices keep firm today and shorter term will probably move downward in a steady pace.