Today (on June 29th), trends for Chinese animal and plant protein, oils & oilseeds and grains are shown as follows: 

    Daily review on soybean meal: US soybeans on Chicago Board of Trade ended low last night, yet soybean meal on Dalian Commodity Exchange today further edges up. Domestically, soybean meal spots oscillate in a steady pace tracking futures, and turnover turns light. Soybean meal prices in coastal areas range from 2,940 to 3,040 yuan/tonne, a steady variation of 10-20 yuan/tonne against yesterday (Tianjin prices 3,040 yuan/tonne, Shandong crushers 2,980-3,020 yuan/tonne and traders 2,930-2,960 yuan/tonne; Jiangsu 3,000-3,040 yuan/tonne, Dongguan 3,000-3,020 yuan/tonne, Guangxi 2,980-3,000 yuan/tonne). As oilseeds crushing increases, the overwhelming supply over demand in the downstream sends stockpiles of soybean meal high, and consequently some meal-bloated mills have to idle plants. That also limits upward potential for soybean meal spots. To a large extent, proposed tariffs are probable to come on July 6th, and on the point, soybean basis in Brazil will be further lifted when the trade friction breaks out in full swing. Additionally, Chinese currency RMB against US dollar now drops to 6.62, almost down 4% from the peak in mid-June, and that is to say, soybean import costs increase by nearly 130 yuan/tonne. Such increased costs underpin soybean meal on the market. Frankly speaking, soybean meal is easier to price up as long as the trade fight continues, and any price declines, if possible, will not be great. Wisely, buyers had better stand on the sideways since market calculates USDA is possible to revise up its planted areas and ending stocks on the supply and demand estimates reports tonight.  

    Daily review on imported rapeseed meal: today, prices for imported rapeseed meal pick up, among which prices in coastal areas come into at 2,360-2,510 yuan/tonne with a rise of 10-30 yuan/tonne over yesterday (Great Ocean in Fangchenggang offers 2,360 yuan/tonne; Fuzhiyuan in Dongguan, Guangdong 2,500 yuan/tonne, up 30 yuan/tonne; Chinatex in Zhangzhou, Fujian offers 2,510 yuan/tonne, growing by 10 yuan/tonne). China on its part is ready for a full blast of a trade war, if possible, given tit-for-tat measures about additional tariffs between China and the U.S. will probably happen on July 6th. And notably, Chinese currency RMB has depreciated by 4% from the escalated trade tensions, which equals to a rise of 140 yuan/tonne for rapeseed import costs. That raised costs no doubt boost rapeseed meal prices. On the whole, rapeseed meal is easier to price up amid ongoing trade fights even though heavy stockpiles of rapeseed oil and soybean oil, ongoing action of soybeans and slow feed demand in breeding industry somewhat drag its performance. Wisely, buyers may as well stand on the sideways since market calculates USDA is possible to revise up its planted areas and ending stocks on the supply and demand estimates reports tonight.  

    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 38,000 tonnes, Fuzhou 33,000 tonnes, Shanghai 38,000 tonnes, Tianjin 1,000 tonnes, Dalian 6,000 tonnes, Fangchenggang 1,000 tonnes, and other ports 4,000 tonnes. 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 mindsets to support fishmeal offers. Therefore fishmeal shorter term is mainly 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 in June, 9.3 Mln tonnes in July, 8.5 Mln tonnes in August, 7.2 Mln tonnes in September. To a large extent, proposed tariffs are probable to come on July 6th, and on the point, soybean basis in Brazil will be further lifted when the trade friction breaks out in full swing. Additionally, Chinese currency RMB against US dollar now drops to 6.62, almost down 4% from the peak in mid-June, and that is to say, soybean import costs increase by nearly 130 yuan/tonne. Such increased costs underpin imported soybeans on the market. Further guidance should refer to trade dispute under way. 

    Daily review on oils: US soybeans ended overnight trading low given traders rushed to close positions ahead of USDA reports, by striking contrast, soybean oil on DCE today rebounds mildly and palm oil is on a fairly strong note. Domestically, soybean oil and palm oil spots price up, and turnover is not much. Largely, as proposed tariffs are probable to come on July 6th, soybean basis in Brazil will be further lifted when the trade friction breaks out in full swing. Additionally, Chinese currency RMB versus US dollar now drops to 6.62, almost down 4% form the peak in mid-June, and that is to say, soybean import costs nearly rise by 130 yuan/tonne. Such increased costs bolster oils spots to rise further. Whereas, backed by improved operation rate, accumulating stockpiles of soybean oil in coastal areas up 15% on the year somehow limit upward potential for oils spots. Generally speaking, oils performance will keep strong onwards if trade conflicts with the U.S. continue. Additionally, market estimates that USDA reports tonight will be bearish for the market as soybean planted acreage and ending stocks are possibly revised downward, if such, buyers for the moment had better not chase bids high. 

    Today's soybean oil: main prices for GB grade-one soybean oil in coastal areas stay at 5,440-5,550 yuan/tonnes, increasing by 10-40 yuan/tonne, (Tianjin traders offer 5,520-5,530 yuan/tonne, Rizhao traders 5,460-5,490 yuan/tonne, Zhangjiagang traders 5,550 yuan/tonne, Guangzhou traders 5,440 yuan/tonne). 

    Today's palm oil: 24-degree palm oil prices in coastal areas are mostly between 4,820-4,950 yuan/tonne, increasing by 60-100 yuan/tonne (Tianjin traders offer 4,870-4,880 yuan/tonne, a rise of 60 yuan/tonne; Rizhao traders 4,950 yuan/tonne, a rise of 100 yuan/tonne; Zhangjiagang traders offer 4,900 yuan/tonne, a rise of 100 yuan/tonne; Guangzhou 4,820-4,840 yuan/tonne; Xiamen 4,950 yuan/tonne, a rise of 80 yuan/tonne). 

    Daily review on imported rapeseed oil: today, prices for imported rapeseed oil keep firm, among which prices in coastal areas come into at 6,320-6,400 yuan/tonne with a rise of 10-20 yuan/tonne over yesterday (Shenheng in Dongguan, Guangdong 1901-230 yuan/tonne; Maple in Fangchenggang, Guangxi offers 1809-180 yuan/tonne; Fujian stops to quote). China on its part is ready for a full blast of a trade war given additional taxes on both parts possibly start on July 6th. As Chinese currency RMB has been down 4% from the escalated trade tensions, import costs for rapeseed grow by 140 yuan/tonne. That raised costs send rapeseed oil high. But accumulating stockpiles of rapeseed oil and soybean oil and ongoing auction of soybeans and soybean oil still limit upward potential for oils performance. That is to say, rapeseed oil shorter term is to keep strong following futures in case of trade conflicts onwards, therefore buyers are suggested to maintain proper inventory levels rather than chase high bids.  

    Daily review on corn: today, prices for most domestic corn remain stable though some pick up. Corn buying prices in Shandong deep processorsmostly stay at 1,790-1,890 yuan/tonne, and some rise by 10-16 yuan/tonne as compared wiith yesterday's. 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. Costs support for grain auction in northeast and stricter restrictions on transport in July result in strong mindsets for goods prices among traders. Grain prices in North China this week pare gains followed by lessened old grain imports and not much local grain, such being the case, some businesses in Shandong province revise up corn buying prices these days. Regardless, corn supply is still sufficient on grounds that approximately 8 Mln tonnes are auctioned weekly, increasingly considerable delivery pressure on grain auctioned and slow corn feed demand in the downstream still weigh on corn performance. Shorter term, corn prices on the domestic market are to trade sideways within ranges, 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 steadily (US sorghum: Tianjin offers 2,070 yuan/tonne, Nantong 2,000 yuan/tonne, Guangdong offers 1,860-1,880 yuan/tonne, all being flat. Australian sorghum: Tianjin offers 2,270 yuan/tonne, Shandong 2,500 yuan/tonne, Shanghai 2,400 yuan/tonne. Domestic sorghum drops steadily: 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 2,840 yuan/tonne, down 60 yuan/tonne). Barley at ports prices up steadily (Shandong offers 1,900-1,910 yuan/tonne; Nantong 1,880-1,900 yuan/tonne; Jiangyin 1,880 yuan/tonne; Guangdong 1,800-1,820 yuan/tonne). Rumors about trade fights go around, and reportedly, Trump decided not to adopt the most stringent measures on Chinese investment according to foreign media overnight. Susceptible to market uncertainty, high imported costs for Australian grain also underpin importers' mindset to hold onto goods for higher prices. Nevertheless, factors like fragile feed demand, slow delivery on the market and price advantage failure 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.