Today (on Aug. 20th), trends for Chinese animal and plant protein, oils & oilseeds and grains are shown as follows: 

    Daily review on soybean meal: even though US soybeans sunk in last Friday under good harvest prospects, resumed trade talks between China and the US otherwise help soybean on Globex to break through 900 cents mark. As it is, eased trade tensions are bullish for China's market, whilst given African swine fever sprawls to Liaoning, Heilongjiang and Jiangsu provinces, pig raisers hurry to undersell fattening pig intensively, leaving soybean meal demand lackluster. Meals on DCE today fall sharply, with which soybean meal spots also price down amid low turnover. Soybean meal prices in coastal areas range from 3,130 to 3,230 yuan/tonne, down10-50 yuan/tonne against last Friday (Tianjin prices 3,210 yuan/tonne, Shandong 3,130-3,220 yuan/tonne, Jiangsu 3,200-3,220 yuan/tonne, Dongguan 3,210-3,230 yuan/tonne, Guangxi 3,210-3,230 yuan/tonne). Soybean crush last week climbed to 1.95 Mln tonnes, if continues, more than 2 Mln tonnes will be reached in next two weeks. Such high crush together with resumed talks with Washington and sprawling swine fever results in a short-lived decline for soybean meal spots. Yet soybean meal spots in the near term are expected to trend up after adequate recession factored in increased import costs, unexpected weather conditions for US soybean growth and crushers' mindset for bids. Market also calculates trade tensions between two largest economies will drag on and further sink RMB rate till the official leaders' meeting in China-US multilateral summit scheduled in early November, the time ahead of mid-term election of US president (on Nov. 8th). In this case, buyers had better stay on the sidelines or make proper replenishment on low and stable prices. 

    Daily review on imported rapeseed meal: today, imported rapeseed meal prices down steadily, among which prices in coastal areas stand at 2,420-2,550 yuan/tonne, falling 20-30 yuan/tonne (Great Ocean in Fangchenghai offers 2,480 yuan/tonne; Fuzhiyuan in Dongguan 2,560 yuan/tonne, down 30; Chinatex in Zhangzhou, Fujian 2,550 yuan/tonne). On one hand, rapeseed meal performance is stumbled by burdensome rapeseed meal stocks last week-- about 35,000 tonnes with 3% rise on the week in South China, and by surprisingly high operation rate in mills with assured ample rapeseed and soybean sources. On the other hand, protracted devaluation of RMB and elevated demand give support to rapeseed meal after China's action to cut soybean meal in feed ingredient with alternative mixed meals. Taken all into account, rapeseed meal shorter term is to trade sideways in line with futures and go on upside till a possible trade truce before a mid-term election of US president on Nov. 8th. Wisely, buyers had better make proper replenishment on low and stable prices. 

    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 ordinary SD with 65% protein content in Peru is 10,000 yuan/tonne; 11,400-11,500 yuan/tonne for Japanese SD with 67% protein content; 11,800-11,900 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; 11,300 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 46,000 tonnes, Fuzhou 35,000 tonnes, Shanghai 47,000 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. Except super-grade fishmeal, all other fishmeal are faced with a shortage in supply, therefore shorter term, boosted by good market demand and supported prices, fishmeal is to maintain stable on the market. 

    Daily review on soybeans: prices for imported soybeans drop steadily, where non-GM imported soybean prices at 3,500-3,970 yuan/tonne, up 20 yuan/tonne from last Friday and GM imported soybeans are unquoted. According to Cofeed latest probe, soybean arrival of imports are forecast to be 8.479 Mln tonnes with total 133 vessels in August, 8.5 Mln tonnes expected in September, and 7.6 Mln tonnes projected in October. Such ample supply of imported soybeans no doubt will further inflict on the market. Narrowed price gap between domestic soybeans and imported soybeans also undermines price competitiveness imported soybeans, and limited delivery also puts bearish pressure on imported soybeans for distribution. Yet, with big conflicts between China and the US toward bilateral trade, trade truce will be hard to reach, if such, forward soybean supply will be tight especially when Brazilian soybeans are sold out in the 4th quarter. On the whole, imported soybeans for distribution in the short run will probably trade sideways narrowly and steadily the time market supply & demand balance struggles in trade spats. 

    Daily review on oils: last Friday US soybean slumped in price due to its promising harvest, but today, soybean on Globex rebounds and breaks through 900 cents mark. Meals on DCE plunge down for the contagious African swine fever, while the end of buying meals and selling oils arbitrage lifts oil prices on DCE today, followed by increasing prices for soybean oil and palm oil spots. Turnover overall is not much despite some purchase at lows. Short-term oil markets may continue to climb up with some fluctuations, since oil demands get better in coming peak season of packing oil stockpiling before Mid-autumn Festival and National Day. Add to that, market participants predict that US and China may seek to cease trade disputes before US mid-term election on Nov. 8, that is, over the multilateral summit in early November, under which raising import costs for RMB's potential possibility of devaluation also bolster oil market. But the price upside for oils is otherwise influenced by following existing fundamental pressure: soaring stocks of soybean oil (over 1.6 Mln tonnes) and rapeseed oil, ongoing auctions of State Reserve Bureau, and enormous stocks of crush volumes to 1.95 Mln tonnes last week (2 Mln tonnes expected in the next two weeks). Buyer shall not drive prices up excessively and shall make replenishment on the dips when prices are adjusted.  

    Today's soybean oil: main prices for GB grade-one soybean oil in coastal areas stay at 5,680-5,730 yuan/tonnes, increasing by 10-50 yuan/tonne, (Tianjin traders offer 5,680-5,690 yuan/tonne, Rizhao traders 5,660 yuan/tonne, Zhangjiagang traders 5,730 yuan/tonne, Guangzhou traders 5,700 yuan/tonne). 

    Today's palm oil: 24-degree palm oil prices in coastal areas range from 4,930-4,950 yuan/tonne, increasing by 20-40 yuan/tonne (Tianjin traders offer 4,930-4,940 yuan/tonne, a rise of 40 yuan/tonne; Rizhao stops to report; Zhangjiagang traders offer 4,950 yuan/tonne, a rise of 30 yuan/tonne; Guangzhou traders 4,930 yuan/tonne; Xiamen 4,950 yuan/tonne, up 20). 

    Daily review on imported rapeseed oil: today, prices for imported rapeseed oil rise, among which prices in coastal areas are 6,400-6,550 yuan/tonne with low turnover, up 30-50 yuan/tonne (Shenheng in Dongguan, Guangdong offers 1901-240 yuan/tonne; Maple in Fangchenggang, Guangxi offers 1809-170; Fujian stops to quote). Market calculates China-US trade conflicts will drag on till US mid-term presidential election dated on Nov. 8th, if such, RMB devaluation will go forward. Underpinned by raised import costs and peak stockpiling for small-packing oils in the run-up to Chinese two holidays (Mid-autumn Festival and National Day), rapeseed oil maintain upside in market. Add to that, hot spells in Western Canada recently hurt canola growth in crop growing areas. Nevertheless, scheduled auction by State Reserves and heavy oil stocks otherwise drag down rapeseed oil performance amid oil gluts. To be specific, rapeseed oil last week rose to 135,000 tonnes in South China by 3% and 384,000 tonnes in Ease China by 4% over last week. Buyers thereby should balance well purchases and sales. 

    Daily review on corn: corn prices today on the domestic market edge up. Corn buying prices in Shandong deep processors mostly stay at 1,820-1,920 yuan/tonne, some are mixed. While main purchasing prices offered at Jinzhou port, Liaoning come into at 1,760-1,790 yuan/tonne, up 30 yuan/tonne from last Friday upon highest bid, and 1,730 yuan/tonne for old corn, up 10 yuan/tonne as opposed to last Saturday upon lowest bid. While drying corn prices of Liaoning and Jilin (volume weight 700 g/L) at Bayuquan port are pegged at 1,720 yuan/tonne, keeing flat; 1,740-1,750 yuan/tonne for naturally dried corn (moisture 13%, volume weight 720-740 g/L), up 10 yuan/tonne from last Friday; 1,700-1,710 yuan/tonne for old corn (volume weight 650-720 g/L, mildew 3-4), unchanged from last Friday. Second-class corn prices at Shekou port, Guangdong keep flat at 1,840-1,860 yuan/tonne from last Friday. Market expects higher prices for new corn this year, on grounds that constant drought speculation in Jinlin and Liaoning provinces, to a large extent, may lead to a lower-than-expected corn production. Given traded volume for corn tentatively reserved had a rise in auction in last Thursday, traders are now confident in corn sales, furthermore underpinned by limited supply of new corn in North China and Huang-Huai corn belt and less and less supply of corn in high quality, corn prices ramp up amid market rigid demand. Yet, bearish fundamentals, in effect, still put a cap on corn market factored in sufficiently ample supply but cautious buying among downstream businesses and lackluster corn feed demand in pig raising. To be specific, the outbreak of swine fever these days wreaks havoc pig industry. In spite of that, corn prices shorter term will trade sideways narrowly with strong momentum for growth. Notably, scattered rains in northeast do alleviate drought and boost corn mature in the new season, yet attention should still be paid to corn auction in market and weather changes.  

    Daily review on sorghum and barley: prices for imported sorghum at ports pick up steadily (US sorghum: Tianjin offers 2,160 yuan/tonne for raw sorghum, and 2,270 yuan/tonne for dried sorghum; Nantong 2,070-2,080 yuan/tonne; Shanghai 2,080 yuan/tonne; Guangdong 2,030-2,050 yuan/tonne. Australian sorghum: Tianjin offers 2,360 yuan/tonne for raw sorghum with a rise of 20 and 2,430 yuan/tonne for dried sorghum; Qingdao 2,400 yuan/tonne for raw sorghum, and 2,500 yuan/tonne for dried sorghum; Shanghai 2,400 yuan/tonne. Domestic sorghum: Daqing in Heilongjiang offer 2,700 yuan/tonne; Qiqihar 2,700 yuan/tonne; Chifeng 2,860 yuan/tonne for dried sorghum; Hinggan League 2,620 yuan/tonne for raw sorghum and 2,700 yuan/tonne for dried sorghum; Changchun in Jilin 2,640 yuan/tonne). Barley at ports prices up steadily (Australian barley: Shandong offers 1,940-1,950 yuan/tonne; Nantong 1,970 yuan/tonne, up 10; Guangdong 1,850-1,870 yuan/tonne, Zhangjiagang 1,950-1,960 yuan/tonne, up 10). Yet, sorghum sourced from the U.S. on China's market later may be sharply curtailed, whilst costs for Australian sorghum also remain high for the present. That leads to strong willingness for higher offers among importers in case of unavailable low costs for grain sources. Therefore sorghum and barley these two days price up, and shorter term will mainly go on a strong note.