Today(on July 5th), trends for Chinese animal and plant protein, oils & oilseeds and grains are shown as follows: 

    Daily review on soybean meal: Chicago Board of Trade overnigt closed due to the Independence Day, accordingly meals futures on DCE today edge low. Whilst soybean meal spots on the domestic market mostly maintain stable amid some falls, yet turnover turns light. Coastal soybean meal prices range from 3,020 to 3,070 yuan/tonne, a fluctuation of 10-20 yuan/tonne partly compared with yesterday (Tianjin prices 3,030 yuan/tonne, Shandong 3,000-3,070 yuan/tonne, Jiangsu 3,030-3,070 yuan/tonne, Dongguan 3,050-3,080 yuan/tonne, Guangxi 3,020-3,050 yuan/tonne). Soybeans from US Gulf CIF China will hit 3,750 yuan/tonne in the fourth quarter, almost 450 yuan/tonne above soybeans imported from Brazil, provided if China puts additional 25 percent of tariffs on US soybeans July 6th. That then will result in low soybean purchases in the fourth quarter, in detail, estimated 6.3 Mln, 4.8 Mln and 5.1 Mln tonnes for October, November and December, respectively. What's more, with possibly intensifying trade disputes, soybean sources onwards will be worrisome amid frequent weather speculation for US soybean during July and August period, and on this point, crushers have strong mindsets to support soybean prices. Frankly speaking, soybean meal overall is easier to price up as long as the trade spats continue, if possible, will not be impressive regardless of surprisingly high operation rate and heavy stockpiles of soybean meal spots. Wisely, buyers had better stand on the sideline and replenish proper inventories upon bargain hunting. 

    Daily review on imported rapeseed meal: today, prices for imported rapeseed meal basically keep firm, among which prices in coastal areas come into at 2,400-2,560 yuan/tonne (Great Ocean in Fangchenggang offers 2,430 yuan/tonne; Fuzhiyuan in Dongguan, Guangdong 2,540 yuan/tonne; Chinatex in Zhangzhou, Fujian offers 2,560 yuan/tonne). Susceptible to mutual tariffs between the two largest economies starting July 6th, futures featuring strong performance inside and weak outside domestic market earlier mostly cash in. On this point, crushers strongly support goods prices seeing raised import costs of rapeseed and rapeseed oil after terrible RMB devaluation. Meantime, booming aquatic raising in the South after weather gets hot also leads to a short supply of rapeseed meal in Fujian. Generally speaking, rapeseed meal overall is easier to price up and hard to fall impressively amid trade fights. On this point, buyers are suggested to stand on the sideline and replenish inventories properly upon bargain hunting seeing short-lived declining prices.  

    Daily review on fishmeal: today, prices for imported fishmeal pick up steadily, yet prices are negotiable upon transaction and shipments at ports are fairly good. Northern ports: fishmeal price for Peruvian ordinary SD with 65% protein content are 9,600-9,800 yuan/tonne and 11,200 yuan/tonne for Japanese SD with 67% protein content, up 300 yuan/tonne from yesterday; 11,800 yuan/tonne for super steam fishmeal with 68% protein content, up 100 yuan/tonne from yesterday. Southern ports: fishmeal price for ordinary SD with 65% protein content in Peru is 9,500 yuan/tonne; 11,200 yuan/tonne for Japanese SD with 67% protein content, up 300 yuan/tonne from yesterday; 11,800 yuan/tonne for super steam fishmeal with 68% protein content. Port stocks: Hangpu has 40,000 tonnes, Fuzhou 34,000 tonnes, Shanghai 40,000 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. Goods traders now prefer to stand on the sideline in consideration of RMB devaluation and shriveled stockpiles at some ports, therefore fishmeal shorter term is to maintain stable with strong momentum.  

 

    Daily review on soybeans: prices for most imported soybeans keep stable, where non-GM imported soybean prices at 3,490-4,070 yuan/tonne, and GM imported soybeans are unquoted. Soybeans from US Gulf CIF China will hit 3,750 yuan/tonne in the fourth quarter, almost 450 yuan/tonne above soybeans imported from Brazil, provided if China puts additional 25 percent of tariffs on US soybeans July 6th. That then will result in low soybean purchases in the fourth quarter, in detail, estimated 6.3 Mln, 4.8 Mln and 5.1 Mln tonnes for October, November and December, respectively. What's more, with possibly intensifying trade disputes, soybean sources onwards will be worrisome amid frequent weather speculation for US soybean during July and August period, and on this point, crushers have strong mindsets to support imported soybean prices. Attention should still be paid to trade fights under way between the two largest economies. 

    Daily review on oils: Chicago Board of Trade closed last night, accordingly, oils on Dalian Commodity Exchange today edge down. Domestically, soybean oil spots mostly maintain stable amid some declines and palm oil partly encounter with oscillation. Turnover is still not much for most buyers prefer to stand on the sideline. US Soybeans CIF China from US Gulf will come into at 3,750 yuan/tonne in the fourth quarter, about 450 yuan/tonne above soybeans imported from Brazil in the event that China does slap 25 percent of tariffs on US soybeans July 6th. That will result in low soybean purchases in the fourth quarter and then worrisome soybean sources onwards, in detail, estimated 6.3 Mln, 4.8 Mln and 5.1 Mln tonnes for October, November and December, respectively. RMB devaluation is still reacting though RMB rate these two days ramps up, therefore costs for imported goods are overall raised. Considerable fundamental pressure still weakens oils performance, for example, heavy stockpiles of soybean oil around 1.5 Mln tonnes based on surprisingly high operation rate hover the oils market. Whereas, crushers are seen positive about goods disposals amid anticipated frequent weather speculation for US soybeans and likely escalating trade tensions, on this occasion, oils shorter term are not to slump but to keep a strong note overall. Wisely, buyers had better stand on the sideline 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 5,430-5,540 yuan/tonnes, some down 10 yuan/tonne, (Tianjin traders offer 5,500-5,520 yuan/tonne, Rizhao traders 5,470 yuan/tonne, Zhangjiagang traders 5,540 yuan/tonne, Guangzhou traders 5,430 yuan/tonne). 

    Today's palm oil: 24-degree palm oil prices in coastal areas range from 4,810 to 4,900 yuan/tonne, some down 10 yuan/tonne (Tianjin traders offer 4,850-4,860 yuan/tonne; Rizhao traders 4,900 yuan/tonne, down 10 yuan/tonne; Zhangjiagang traders 4,870 yuan/tonne; Guangzhou traders 4,810 yuan/tonne; Xiamen traders 4,920 yuan/tonne). 

    Daily review on imported rapeseed oil: today, prices for imported rapeseed oil basically keep firm, among which prices in coastal areas are 6,310-6,430 yuan/tonne (Shenheng in Dongguan, Guangdong offers 1901-240; Maple in Fangchenggang, Guangxi offers 1809-180; Fujian stops to quote). Import costs for rapeseed and rapeseed oil rise by bounds and leaps amid RMB depreciation and mutual additional tariffs scheduled tomorrow. Albeit overwhelming oils supply over demand somewhat limit upward potentials for rapeseed meal prices, rapeseed meal actually has resistance to drop and is to go strong amid ongoing trade fights. Therefore, buyers had better stand on the sideline in view of volatile prices. 

    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 1,820-1,920 yuan/tonne, but Xinfeng in Shouguang revises corn prices downward by 10 yuan/tonne from yesterday. While main purchasing prices offered at Jinzhou port, Liaoning come into at 1,720 yuan/tonne, slightly down 10 yuan/tonne from yesterday, and 1,700 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. Second-class corn prices at Shekou port, Guangdong keep flat at 1,820-1,840 yuan/tonne, while 1,880 yuan/tonne for corn in container, unchanged from yesterday. Noticeable pressure still hovers grain supply when grain gradually flows into market amid around 49 Mln tonnes of grain auctioned and traded. On the other hand, corn consumption in end users is still fragile the time feed demand in downstream breeding industry is poor and a thorough machine overhaul is on the way during July and August period. Nonetheless, meager grain of year 2017 and costs of grain auctioned in delivery and freight still underpin corn prices and crushers' mindset for high goods prices. On the whole, corn shorter term is not likely to oscillate impressively, instead, its prices will move sideways around delivery costs. 

    Daily review on sorghum and barley: today, imported sorghum at ports prices steadily (US sorghum: Tianjin offers 2,070 yuan/tonne, Nantong offers 2,000 yuan/tonne, Guangdong offers 1,860-1,880 yuan/tonne, being flat. Australian sorghum: Tianjin offers 2,270 yuan/tonne, Shandong 2,500 yuan/tonne, Shanghai stops to quote. Domestic sorghum: Heilongjiang offer 2,960 yuan/tonne for dried sorghum; 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). 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; Yancheng 1,900 yuan/tonne; Guangdong 1,800-1,820 yuan/tonne). According to Trump administration, tens of billions of Chinese goods will be subject to additional tariffs on July 6th, and if such, China will take tit-for-tat measures with same scale and intensity in response. Importers for the present would like to stand on the sideline seeing market uncertainties. 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.