Daily Report on Cottonseed and Its By-products in China
Cottonseed meal: US soybean closed higher last night. Today, meals on DCE surge, followed by soybean meal spot goods to increase 20-40. Cottonseed meal price keeps stable today for its limited supply in peak demand season of aquaculture and climbing consumption in poultry. 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 shall not chase prices higher excessively.
Cottonseed oil: US soybean oil continued to fall due to the end of buying oils and selling meals arbitrage. Today, oils on DCE also fall slightly, with spot goods of soybean oil down 10-30. As a blending oil, cottonseed oil is restricted in usage amount, making its price hard to surge. On the whole, its price remains stable today due to limited output of cottonseed oil under low operation rate by dismal crush profits and temporary shortage of cottonseed supply. Besides, small packing oil stockpiling in the run-up to festival is yet to finish, so cottonseed oil price may keep stable with strong fluctuations. Buyers are suggested to make some replenishment at lows.
Cottonseed: Cottonseed price stays stable today, due to ongoing China-US trade disputes, and tighter cottonseed supplies in mainland China since cottonseed from Xinjiang is small in volume when transportation from Xinjiang to mainland China are mainly put into melons and fruits. But cottonseed price is hard to surge at present, due to sluggish upward of cottonseed oil and cottonseed meal under the existing fundamental pressure of staple oils and soybean meal, dismal crush profits in oil mills and lower quality of old cottonseed, despite that scattered washy new cottonseeds have entered into market. Therefore, short-term cottonseed price may be mainly in a narrow fluctuation state.
