Today (on June 20th), 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 reached the nadir over the past nine and a half years attributed to funds selling after trade tensions between China and the US came to a head. Despite bullish factors for meals domestically from trade war, soybean meal on DCE today actually pares gains after low open owing to some profit taking, with which meal spots on the domestic market also price down. Still, turnover is still not much. Soybean meal prices in coastal areas range from 2,920 to 3,000 yuan/tonne, a decline of 30-50 yuan/tonne from yesterday (Tianjin prices 3,000 yuan/tonne, Shandong 2,920-3,000 yuan/tonne, Jiangsu 2,980-3,000 yuan/tonne, Dongguan 3,000-3,020 yuan/tonne, Guangxi 2,950-3,000 yuan/tonne, Fujian 2,980-3,020 yuan/tonne). Generally, more than 2 Mln tonnes of soybeans reserved are estimated to be auctioned, among which 0.3 Mln tonnes are auctioned today and 0.5 Mln tonnes projected next week. In wake of surging oilseeds crush based on large soybean arrivals, stockpiles of soybean meal nationwide again recover to 1.26 Mln tonnes, a rise of 6% as compared to last week, but bearish fundamentals like poor pigs raising still subdue rallies of soybean meal. However, meals demand in aquatic raising resumes as it gets hotter and hotter in South China. Therefore in near term, soybean meal is not to price down a lot but to keep strong amid possibly severer trade dispute. Wisely, buyers had better stand on the sideways and make replenishment upon bargain hunting when prices go stable. 

    Daily review on imported rapeseed meal: today, prices for imported rapeseed meal edge low, among which prices in coastal areas come into at 2,300-2,450 yuan/tonne with a reduction of 10-50 yuan/tonne over yesterday (Guangxi offers 2,400 yuan/tonne, down 20 yuan/tonne; Fuzhiyuan in Dongguan, Guangdong 2,450 yuan/tonne; Chinatex in Zhangzhou, Fujian 2,450 yuan/tonne, down 50 yuan/tonne). Bearish fundamentals still hover over rapeseed meal factored in accumulating stockpiles of rapeseed meal and soybean meal based on large soybean and rapeseed arrivals at ports and surging oilseeds crushing, and delayed meals demand in pigs raising owing to losses. However, meals demand in aquatic raising may be quickly enhanced when hot weather comes in South China. Shorter term, rapeseed meal is easier to trade up amid possibly severer trade spat. 

    Daily review on fishmeal: today, prices for imported fishmeal keep firm, yet prices are negotiable upon transaction and shipments at ports are fairly good. 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; 11,700-11,800 yuan/tonne for super steam fishmeal with 68% protein content. Southern ports: fishmeal price for ordinary SD with 65% protein content in Peru is 9,500 yuan/tonne; 10,900 yuan/tonne for Japanese SD with 67% protein content; 11,800 yuan/tonne for super steam fishmeal with 68% protein content. Port stocks: Hangpu has 35,000 tonnes, Fuzhou 32,000 tonnes, Shanghai 35,000 tonnes, Tianjin 1,000 tonnes, Dalian 6,000 tonnes, Fangchenggang 1,000 tonnes, and other ports 4,000 tonnes. Fishing: till June 18th, about 3,090,491 tonnes of fish have been caught in A season of year 2018, accounting for 93.18% of the total volume; fishing quota for this season is 3,316,700 tonnes, among which 226,209 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 $1,580 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 are now under pressure in fishmeal sales for possibly intensive fishmeal imports in late June will put more pressure on stockpiles. Consequently, fishmeal is to trade stable with downward tendency shorter term. 

Oils & Oilseeds: 

    Daily review on soybeans: prices for most imported soybeans keep stable, where non-GM imported soybean prices at 3,590-4,070 yuan/tonne, and GM imported soybeans are unquoted. The U.S. administration on June 15th announced its additional 25 percents of tariffs on goods imported from China worth 50 billion U.S. dollars. Immediately, China slapped the same scale of 25% tariffs on US goods about 659 items worth $50 billion, among which 545 items including agricultural products, automobiles, and aquatic products worth up to $34 billion will take effect on July 6th, and the left susceptible to additional tariffs will be announced another time. Given both tariffs will take effect until July 6th, quotes for imported soybeans today are not on the increase and actually imported soybeans on the market are weighed down when stockpiles at ports are still sufficient. Yet once China starts its tariffs on US soybeans, costs for imported soybeans will then hit unexpectedly high together with the prices on the market. Frankly, attention should still be paid to US trade friction with China under way for guidance. 

    Daily review on oils: US soybeans overnight hit a record low over the past one decade attributed to funds selling when China’s trade tensions with the US escalated. Oils on DCE today still run above former closing though fall further, correspondingly, prices offered for soybean oil and palm oil today offset former declines given most are unquoted yesterday. Regardless, turnover is still not much when buyers maintain cautious even though large price declines do attract some deals. Reportedly, auction of soybeans and soybean oil will go forward, in detail, around 0.3 Mln tonnes of soybeans today, 0.5 Mln tonnes of soybean oil in the day after tomorrow, 0.5 Mln tonnes of soybeans and 0.5 Mln tonnes of soybean oil in June 27th. Additionally, stockpiles of soybean oil have already jumped over 1.4 Mln tonnes helped by sufficient large soybean arrivals ahead of September and increasing lifted operation rate. That together with tumbling slumping stock market puts oils to a bearish stance. Shorter term, oils are to edge lower on grounds that oils on DCE should have traded lower amid escalating trade spat. Wisely, buyers may as well stand on the sidelines or take a hand-to-mouth purchasing strategy. 

    Today's soybean oil: main prices for GB grade-one soybean oil in coastal areas stay at 5,380-5,480 yuan/tonne, down 120-250 yuan/tonne, (Tianjin traders offer 5,470-5,480 yuan/tonne, Rizhao traders 5,450 yuan/tonne, Zhangjiagang traders 5,480 yuan/tonne, Guangzhou traders 5,380 yuan/tonne). 

    Today's palm oil: 24-degree palm oil prices in coastal areas are mostly between 4,620 and 4,700 yuan/tonne, a decline of 190 yuan/tonne (Tianjin traders offer 4,690-4,700 yuan/tonne, a drop of 190 yuan/tonne; Zhangjiagang traders offer 4,660 yuan/tonne, a decline of 190 yuan/tonne; Guangzhou 4,660 yuan/tonne, down 190 yuan/tonne; Gunagzhou 4,620-4,650 yuan/tonne; Rizhao traders and Xiamen traders stop to report). 

    Daily review on imported rapeseed oil: today, imported rapeseed oil prices down steeply, among which prices in coastal areas are 6,290-6,380 yuan/tonne, down 170-250 yuan/tonne (Basis: Fuzhiyuan in Guangdong offers 6,350 yuan/tone for GB grade four, Maple in Fangchenggang, Guangxi offers 1809-200, Fujian stops to quote). Declining oils futures on the domestic market dampen market confidence on grounds of heavy stockpiles of soybean oil and palm oil and slumping palm oil to offset bullish factors from trade spat. Notably, stockpiles of soybean oil have being up to 1.4 Mln tonnes based on weekly auction of soybean oil about 0.05 Mln tonnes and increased auction of soybean reserved next week around 0.5 Mln tonnes together with growing stockpiles of rapeseed oil, and gradual exclusion of palm oil used in biodiesel production according to EU decision results in surprising declines of palm oil. Therefore, rapeseed oil shorter term is to move downward.  

Grains: 

    Daily review on corn: today, prices for most domestic corn remain stable, some fluctuating in a tight range. Corn buying prices in Shandong deep processors mostly stay at 1,840-1,930 yuan/tonne, some fluctuating fractionally. While main purchasing prices offered at Jinzhou port, Liaoning come into at 1,700-1,720 yuan/tonne (volume weight 700 g/L), and 1,690 yuan/tonne for old corn, both unchanged from yesterday. While drying corn prices of Liaoning and Jilin at Bayuquan port are pegged at 1,720 yuan/tonne; 1,740 yuan/tonne for naturally drying corn; 1,620-1,710 yuan/tonne for old corn (volume weight 650-720 g/L, mildew 3-4), all unchanged from yesterday. Corn prices at Shekou port, Guangdong stay at 1,850 yuan/tonne, 1,800-1,820 yuan/tonne for second-class old corn, down 10 yuan/tonne from yesterday. Traders are now busy in buying and selling new barley when grain left in North China and Huang-huai areas basically bottoms out, and additionally, as supply of grain auctioned in northeastern areas is downsized owing to unsatisfying margins in sales, grain demand in the period is recovered and then boosts corn partially in North China in recent days. Albeit approximately 8 Mln tonnes of grain are auctioned each week, merely 30% of grain upon transaction is delivered with delivery time around 60 days, on this point, pressure on old grain delivery will be considerable later. Notwithstanding, corn demand otherwise is still capped when feed businesses in the downstream keep cautious about buying. Shorter term, corn is to move sideways narrowly since its poor vitality to rebound. Yet, market attention should still be fixed on factors like corn transaction and delivery, and trade war under way for grain like corn and sorghum imported from the U.S. is susceptible to all these factors.  

    Daily review on sorghum and barley: today, imported sorghum at ports are mostly unquoted (US sorghum: Tianjin, Nantong and Guangdong stop to quote. Australian sorghum: Tianjin, Shandong and Shanghai stop to quote. 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 and Hinggan League offers 2,800 yuan/tonne for raw sorghum; Jilin 2,700 yuan/tonne for raw sorghum). Barley at ports are mostly unquoted ( Australian barley: Tianjin, Shandong, Nantong, Jiangyin, Yancheng and Guangdong stop to quote. Canadian barley: Nantong stops to quote. French barley: Nantong stops to quote). US President Trump last Friday announced tariffs on 50 billion of Chinese imports, then Beijing in response slapped tariffs of same scale and strength on US goods. That escalated trade dispute between the world largest economies poses threat to US sorghum imports to China and adds uncertainty to its supply on the China's market. Yet shriveled sorghum imports will otherwise boost demand for barley as sorghum and barley are both alternatives for corn as feed ingredient. For the present, importers who have stocks at hand are seen strongly supporting sorghum prices, then grain spots on the market shorter term will also price up. 

(USD $1=CNY 6.47)