Daily Report on Cottonseed and Its By-products in China
Cottonseed meal: Today, meals on DCE go up slightly, followed by soybean meal to increase 10-20. Cottonseed meal is in short supply as aquaculture is still in peak demand season and consumption in poultry is on the climb, in addition, trade disputes may result in a tight supply of the fourth quarter soybean. Therefore, cottonseed meal is predicted to remain its moderate upward state with fluctuations before new cottonseed meals go into market. But there still exist some possibilities of stock pressure for soybean meal and uncertainties in trade war, so buyers are suggested to replenish at lows and not to chase prices higher excessively.
Cottonseed oil: Cottonseed supply is in temporary shortage as its new seeds are yet to enter into market. And the limited production of cottonseed oil caused by dismal crush profits and low operation rate keeps its price stable today. Due to its bumper harvests yet gloomy demand outlook, US soybean fell last night. Today, oils on DCE also go down, with spot goods of soybean oil down 10-30. Cottonseed oil, as a blending oil, is restricted in usage amount, making its price hard to surge. As small packing oil stockpiling before festival is yet to finish, cottonseed oil price may keep stable with strong fluctuations, but buyers shall not to chase prices higher excessively.
Cottonseed: Cottonseed price keeps stable today, due to ongoing China-US trade disputes and tighter cottonseed supplies, in addition that cottonseed from Xinjiang is small in volume since transportation from Xinjiang to mainland China are mainly put into melons and fruits. But cottonseed futures on DCE remain weak, which is unfavorable to its oil and meal markets. And its price is difficult to rise for dismal profits in oil mills and lower quality of old cottonseed, despite that scattered washy new cottonseeds have entered into market. Short-term cottonseed price may be mainly in a narrow fluctuation state.
