Today (on August 3rd), trends for Chinese animal and plant protein, oils & oilseeds and grains are shown as follows: 

    Daily review on soybean meal: susceptible to escalating trade tensions between China and the US, US soybeans further sunk in overnight trading. Accordingly meals on DCE today come off high opens, and soybean meal spots on the domestic market also price down steadily yet with few turnover. Soybean meal prices in coastal areas range from 2,990 to 3,120 yuan/tonne, a steady decline of 10-20 yuan/tonne from yesterday (Tianjin prices 3,050 yuan/tonne, Shandong 2,990-3,040 yuan/tonne, Jiangsu 3,050-3,080 yuan/tonne, Dongguan 3,100-3,120 yuan/tonne, Guangxi 3,060-3,080 yuan/tonne). Meal-bloated phenomena drag on given slow meals consumption amid dismal demand in low live pigs raising fails to offset growing soybean processing in mills, as thus, sending its spots to slide in a steady pace. US Trade Representative office proposes to drive up tariffs of 10% to 25% on $200 billion of Chinese goods in its official statements, such suggestive escalating trade tensions then results in impressive devaluation of RMB offshore rate to 6.9. In this way, lifted import costs for soybeans due to RMB devaluation, strong support for meals prices among crushers amid losses in spots crush and margins, actually underpin soybean meal spots to resist falls and to go stronger than futures overall, whist negative basis for spots and futures is also seen rising. Overall, soybean meal is expected to trend up and move sideways the time feed consumption goes large in aquaculture and weather speculation for US soybean growth is probable to come in August. On this point, buyers are suggested to stay on the sideline. 

    Daily review on imported rapeseed meal: today, imported rapeseed meal prices down, among which prices in coastal areas stand at 2,320-2,480 yuan/tonne, falling 20-40 yuan/tonne (Ocean in Fangchenghai offers 2,350 yuan/tonne, with a decline of 20 yuan/tonne; Fuzhiyuan in Dongguan 2,480 yuan/tonne, down 10 yuan/tonne; Chinatex in Zhangzhou, Fujian 2,440 yuan/tonne, down 40 yuan/tonne). Regardless, ample supply of soybean meal and rapeseed meal at home drag down rapeseed meal performance, surging costs for oilseeds imported amid impressive RMB devaluation near to 6.9 and weather speculation for US soybean growth under way otherwise give the support. Notably, sufficiently large soybeans imported will arrive at ports, where approximately 16.4 Mln tonnes are expected during August-and-September period, in the meanwhile, rapeseed processing rate touch an exceedingly high backed by ample rapeseed. Such being the case, rapeseed meal in the near term is to trade sideways narrowly tracking futures, buyers thereby had better take a hand-to-mouth purchasing strategy. 

    Daily review on fishmeal: prices for imported fishmeal keep firm, yet some fishmeal expand rooms for price negotiation and shipments at ports are fairly good. Northern ports: fishmeal price for ordinary SD with 65% protein content in Peru is 9,800 yuan/tonne; 11,500 yuan/tonne for Japanese SD with 67% protein content; 12,000 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; 11,500 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 44,000 tonnes, Fuzhou 35,000 tonnes, Shanghai 42,000 tonnes, Tianjin 1,000 tonnes, Dalian 4,000 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. Fishmeal is to maintain stable on the market on conditions of robust market demand and raised import costs after protracted RMB devaluation. 

    Daily review on soybeans: prices for most imported soybeans keep stable, where non-GM imported soybean prices at 3,450-3,900 yuan/tonne, and GM imported soybeans are unquoted. According to Cofeed latest probe, soybean arrival of imports are forecast to be 8.561 Mln tonnes with total 135 vessels in July, 8.384 Mln tonnes in August, and 8 Mln tonnes in September. Such ample supply weighs down imported soybeans. In addition, slow consumption in businesses and limited demand in end users further drag down prices of non-GM imported soybeans. Narrowed price gap between domestic soybeans and imported soybeans also undermines price competitiveness of imported soybeans and further weighs down the market. However, great RMB devaluation amid US-China trade fights will underpin soybean costs to trend up, and worries about soybean sources later and unexpected weather conditions for US soybean growth also win crushers support for prices. That is to say, imported soybeans on the market are underpinned. On the whole, imported soybeans in the short run will probably trade down amid trade fights, but later may go up on the market. 

    Daily review on oils: office of the US Trade Representative made an official declaration that Washington is considering on raising the tariff of 10% to 25% on $ 200 billion Chinese imports. This leads to increased concern over trade war between the two economies. The weekly exports of US soybeans fell by 76% over a week before, so the US soybean market continued to fall last night. Since oil market on DCE begin to decline with small fluctuations today, with decreasing soybean oil and palm oil spots on the domestic, the trading volume is thin. Due to low demands, stockpiles of soy oil rise up to 1.6 Mln tonnes. Additionally, oil market is also curbed by such factors as protracted auctions by State Reserve Bureau, increasing production of palm oil in Southeast Asia despite low exports, and slumping futures on Bursa Malaysia Derivatives. The offshore RMB exchange rate has depreciated to near 6.9, which obviously increases the import cost of soybeans. Both soybean crush margins and futures net profit on market are at a loss, underpinning oils' resistance against potential falls. Shorter term, oil spots are predicted to have some oscillating adjustments in line with futures, but may recover after stockpiling of packing oil starts in the peak season. Buyers are suggested to wait till the prices go steady and make proper replenishment. 

    Today's soybean oil: main prices for GB grade-one soybean oil in coastal areas stay at 5,480-5,600 yuan/tonne, down 10-30 yuan/tonne (Tianjin traders offer 5,520-5,530 yuan/tonne, Rizhao traders 5,480 yuan/tonne, Zhangjiagang traders 5,600 yuan/tonne, Guangzhou traders 5,490-5,500 yuan/tonne). 

    Today's palm oil: 24-degree palm oil prices in coastal areas are mostly between 4,710 and 4,790 yuan/tonne, some declining by 20-30 yuan/tonne (Tianjin traders offer 4,730-4,750 yuan/tonne; Rizhao offer 4,790 yuan/tonne, down 30 yuan/tonne; Zhangjiagang traders offer 4,730 yuan/tonne, down 20 yuan/tonne; Guangzhou 4,710 yuan/tonne; Xiamen traders stop to quote). 

    Daily review on imported rapeseed oil: today, prices for imported rapeseed oil go steady amid some variations, among which prices in coastal areas are 6,140-6,300 yuan/tonne with low turnove, a variation of 20-30 yuan/tonne (Fuzhiyuan in Dongguan, Guangdong offers 1901-240 yuan/tonne; Maple in Fangchenggang, Guangxi offers 1809-170; Fujian stops to quote). To be sure, raising import costs of soybean and rapeseed motivated by RMB devaluation though bolster rapeseed oil, such fragile oils fundamentals as languishing demand in end users, growing soybean oil and rapeseed oil in stockpiles, ongoing auction and accumulating palm oil stockpiles in Malaysia in its production season still hover above and limit upward potentials for rapeseed oil on the market. Rapeseed oil is to trade sideways frequently tracking futures in the near term, therefore buyers had better take a hand-to-mouth purchasing strategy for the moment. 

    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, some further down 6-10 yuan/tonne from yesterday. While main purchasing prices offered at Jinzhou port, Liaoning come into at 1,740 yuan/tonne, up 20 yuan/tonne from yesterday, and 1,715-1,720 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; 1,690 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 1,830-1,850 yuan/tonne from yesterday. Corn is now sufficient in supply given ongoing auction of old corn reserved-- another 8 Mln tonnes on August 9th and 10th next week, and supplying of early new corn. Under such circumstances, some hoarders in North China speed up corn shipments though more and more deep processors suspend operation for machine overhaul. As such, corn performance is further capped, especially when dismal fish breeding and poultry raising gives little improvement to corn demand among end users. However, costs for old corn reserved and rigid demand in the market still win crushers' support for corn prices. Overall, corn in the near term is not to suffer great fluctuations, instead, it will trade sideways and maintain stable yet with weak momentum. 

    Daily review on sorghum and barley: today, prices for imported sorghum at ports go steady (US sorghum: Tianjin offers 2,120-2,130 yuan/tonne for raw sorghum and 2,240 yuan/tonne for dried sorghum, Nantong 2,030-2,050 yuan/tonne, Shanghai 2,050 yuan/tonne, Guangdong offers 1,880 yuan/tonne. Australian sorghum: Tianjin offers 2,300-2,350 yuan/tonne for raw sorghum and 2,400 yuan/tonne for dried sorghum, Shandong 2,500 yuan/tonne, Shanghai 2,400 yuan/tonne. Domestic sorghum: Daqing in Heilongjiang offer 2,700 yuan/tonne for dried sorghum; Chifeng in Inner Mongolia offer 2,900 yuan/tonne for dried sorghum; Hinggan League 2,700 yuan/tonne). Barley price at ports keep firm (Shandong offers 1,900-1,910 yuan/tonne; Nantong 1,900-1,920 yuan/tonne; Guangdong 1,820-1,850 yuan/tonne). Sorghum sourced from the U.S. on domestic market later may be cut off given intensifying trade tensions between the world two largest economies. Therefore importers having goods at hand prefer to hold onto goods and support goods offers. Meantime high import costs for grain also give support to the market and sorghum prices in the near term are to ramp up. Whereas, sluggish barley demand overall still weighs on the market. Shorter term, barley will be seen weaker than sorghum in performance.