Today (on June 27th), trends for Chinese animal and plant protein, oils & oilseeds and grains are shown as follows: 

    Daily review on soybean meal: susceptible to good weather conditions and escalating trade spat, US soybeans ended overnight trading lower, by contrast, meals on DCE today are on a strong note backed by trade conflicts. Accordingly, soybean meal spots on the domestic market price up in line with futures. Turnover upon lower prices does attract deals, but that of higher prices is not much. Soybean meal prices in coastal areas range from 2,900 to 3,000 yuan/tonne, a rise of 10-50 yuan/tonne against yesterday (Tianjin prices 2,980-3,000 yuan/tonne, Shandong 2,900-2,950 yuan/tonne, Jiangsu 2,920-2,980 yuan/tonne, Dongguan 2,960-2,980 yuan/tonne, Guangxi 2,940-2,980 yuan/tonne). There seems to be little chance for China and the U.S. to reconcile before the formal additional tariffs on each part on July 6th, which then boosts rallies in soybean meal. Whereas, high operation rate and heavy stockpiles but slow feed demand in fish breeding and poultry raising domestically weigh more on soybean meal spots than on futures. Notably, stockpiles of soybean meal in coastal areas have risen to 1.24 Mln tonnes by 10% on the week. As soybean meal shorter term is still on a strong note backed by heated-up trade spat, buyers had better maintain safe inventory levels and not chase high bids. 

    Daily review on imported rapeseed meal: today, imported rapeseed meal price up, among which prices in coastal areas come into at 2,320-2,450 yuan/tonne, with a rise of 40-70 yuan/tonne (Great Ocean in Fangchenggang offers 2,320 yuan/tonne; Fuzhiyuan in Dongguan, Guangdong stops to quote; Chinatex in Zhangzhou, Fujian 2,380 yuan/tonne, down 20 yuan/tonne). Regardless, rapeseed meal spots for the moment have limited upward potential factored in heavy stockpiles of rapeseed meal and soybean meal, increasing auction of soybeans by State Reserve about 0.5 Mln tonnes, and slow demand in breeding industry domestically, though import costs increase after sharp devaluation of RMB together with crushers' support for oils prices are favorable for rapeseed oil prices, especially when trade spat is to heat up after President Xi told the CEOs of major companies in Europe and America that China would not compromise on the U.S. unfair tariffs. Wisely, buyers had better maintain safe property rather than chase bids high.  

    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 37,000 tonnes, Fuzhou 33,000 tonnes, Shanghai 36,000 tonnes, Tianjin 1,000 tonnes, Dalian 6,000 tonnes, Fangchenggang 1,000 tonnes, and other ports 4,000 tonnes. Fishing: till June 24th, about 3,141,956 tonnes of fish have been caught in A season of year 2018, accounting for 94.73% of the total volume; fishing quota for this season is 3,316,700 tonnes, among which 174,744 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 $1,600 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 view of increasingly high import costs after RMB devaluation, goods holders have pronounced mindsets to support fishmeal offers. Therefore fishmeal shorter term is to keep firm. 

    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. According to Cofeed latest probe, soybean arrival later at ports will be sufficiently large, in detail, soybean arrival of imports are forecast to be 9.5495 Mln tonnes with total 147 vessels in June, 9.5 Mln tonnes in July, 8.5 Mln tonnes in August, 7.8 Mln tonnes in September. Lower and lower possibility for China and the U.S. to reconcile before the additional tariffs on July 6th has sent soybean basis in South America to a high level. That raised import costs for China also give support to other imported soybeans. Further guidance should refer to trade dispute under way. 

    Daily review on oils: susceptible to trade concerns and good US soybean conditions about 73% G/E, the highest since mid-1980s, US soybeans overnight further slid. By contrast, oils on DCE today trade up after high opens underpinned by trade dispute, accordingly, soybean oil and palm oil on the domestic market both price up. Turnover upon lower prices probably turns better. As no talks are scheduled after the U.S. and China declare their proposed additional tariffs on each part July 6th, possibly fierce trade conflicts actually bolster oils on the domestic market. Reportedly, among 0.5 Mln tonnes of soybeans to be auctioned by State Reserve, only 21% turnover is made today, and fewer turnover of soybean oil among 0.05 Mln tonnes of soybean oil auctioned due to excessively high acid value. Furthermore, assured by large soybean arrivals and substantially recovered operation rate, soybean oil remains high in stockpile with nearly 1.5 Mln tonnes in total. Given oils deficiency can be offset by large palm oil exports, escalating trade spat actually gives more support for soybean meal than soybean oil, on this note, active arbitrage of buying soybean meal and selling soybean oil also subdues rises in oils. As oils spots shorter term are further to be bolstered by possibly severer trade spat, raised import costs after sharp devaluation of RMB and increasing crude oils prices above 70 US dollars, buyers who are out of stock may as well replenish inventories properly. 

    Today's soybean oil: main prices for GB grade-one soybean oil in coastal areas stay at 5,390-5,500 yuan/tonnes, increasing by 10-50 yuan/tonne, (Tianjin traders offer 5,460-5,470 yuan/tonne, Rizhao traders 5,450 yuan/tonne, Zhangjiagang traders 5,500 yuan/tonne, Guangzhou traders 5,390 yuan/tonne). 

    Today's palm oil: 24-degree palm oil prices in coastal areas are mostly between 4,740 and 4,860 yuan/tonne, up 10-40 yuan/tonne (Tianjin traders offer 4,780-4,800 yuan/tonne, a rise of 10 yuan/tonne; Rizhao traders 4,860 tonnes, up 30 yuan/tonne; Zhangjiagang traders offer 4,800 yuan/tonne, up 40 yuan/tonne; Guangzhou 4,740 yuan/tonne; Xiamen traders stop to quote). 

    Daily review on imported rapeseed oil: today, imported rapeseed oil prices up, among which prices in coastal areas are 6,300-6,400 yuan/tonne, a rise of 20-50 yuan/tonne (Basis: Shenheng in Guangdong offers 1901-230; Maple in Fangchenggang, Guangxi offers 1809-180). Albeit rallying import costs in wake of sharp devaluation of RMB amid crushers' support for oils prices are favorable for oils performance, especially when trade spat is to heat up after President Xi told the CEOs of major companies in Europe and America that China would not compromise on the U.S. unfair tariffs, ample oils supply on the domestic market based on large soybean and rapeseed arrivals at ports, accumulating stockpiles of rapeseed oil and soybean oil, ongoing action of soybean and soybean oil still pose bearish effects on oils. And given oils deficiency can be offset by large palm oil exports, escalating trade spat actually gives more support for soybean meal than soybean oil, on this note, active arbitrage of buying meals and selling oils also subdues rises in rapeseed oil. Buyers who are out of stock may as well replenish inventories properly upon bargain hunting for rapeseed oil shorter term is still bolstered by trade conflicts. 

    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 1,790-1,890 yuan/tonne, and some decrease by 4-10 yuan/tonne from yesterday. While main purchasing prices offered at Jinzhou port, Liaoning come into at 1,700-1,720 yuan/tonne (volume weight 690-700 g/L), and 1,690 yuan/tonne (volume weight 700 g/L) for old corn. While drying corn prices of Liaoning and Jilin at Bayuquan port are pegged at 1,720 yuan/tonne; 1,730-1,740 yuan/tonne for naturally drying corn; 1,680 yuan/tonne for old corn (volume weight 700 g/L), basically being flat contrasting with yesterday. Corn prices at Shekou port, Guangdong stay at 1,830-1,850 yuan/tonne; 1,800-1,820 yuan/tonne for second-class old corn, being flat as compared with yesterday. Corn supply is overall sufficient on grounds that another round of grain auction about 8 Mln tonnes is to be scheduled on July 5th and 6th, yet increasingly considerable delivery pressure on northeastern grain auctioned and traded, slow corn feed demand in fish breeding and poultry raising, and little improvement for corn used in industry still weigh on corn performance. Notwithstanding, corn prices on the other hand are underpinned given bidding prices for corn of year 2015 reserved in the northeast rise by 50 yuan/tonne, together with raised costs like delivery and frights. Shorter term, corn prices on the domestic market are to trade sideways narrowly dependent on transaction prices, therefore attention should still be paid to corn turnover and delivery under way. 

    Daily review on sorghum and barley: today, imported sorghum at ports prices up (US sorghum: Tianjin offers 2,070 yuan/tonne, up 20 yuan/tonne, Nantong 1,950-2,000 yuan/tonne, up 50 yuan/tonne, Guangdong offers 1,860-1,880 yuan/tonne. Australian sorghum: Tianjin offers 2,270 yuan/tonne, up 20 yuan/tonne, Shandong 2,500 yuan/tonne, up 50 yuan/tonne, Shanghai 2,400 yuan/tonne, up 50 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 and Hinggan League offers 2,800 yuan/tonne for raw sorghum; Jilin 2,700 yuan/tonne for raw sorghum and Changchun offers 2,900 yuan/tonne). Barley at ports prices steadily (Shandong offers 1,900-1,910 yuan/tonne; Nantong 1,880-1,900 yuan/tonne; Jiangyin 1,880 yuan/tonne; Guangdong 1,790-1,800 yuan/tonne). Importer show concerns about market supply later in view of ongoing trade conflict and deadly lessened imports, and meantime high costs of Australian sorghum and barley also underpin importers' mindset to hold onto goods for higher prices. Nevertheless, factors like fragile feed demand, slow delivery on the market and price competitiveness lack in grain as compared to corn otherwise limit its rallying pace and generate little buying interest among feed businesses. Shorter term, grain is to trade sideways overall.