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Daily Report on Cottonseed and Its By-products in China

2018-09-04 www.cofeed.com

    Cottonseed meal: Today cottonseed meal price does not go up, despite its limited supply under peak demand season of aquaculture and climbing consumption in poultry before double holidays. The price is left unchanged also due to the limited demand, for soybean meal has fallen slightly by 10-20. As trade disputes may tighten the fourth-quarter soybean supply, the market is predicted to remain its slow upward state despite some fluctuations before new cottonseed meal enters into market. But buyers shall not chase prices higher excessively since stock pressure of soybean meal and uncertainties of trade war still exist. 


    Cottonseed oil: As buying oils and selling meals arbitrage comes to an end, oils on DCE grasp a noticeable rebound today, followed by soybean oil spots and some cottonseed oil spots of limited production and low price to increase by 30-80 and 20 respectively. But under the relatively high pressure of staple oil supply and limited using amount of  cottonseed oil as a blending oil, cottonseed oil is hard to surge in price. However, trade disputes and small packing oil stockpiling in the run-up to festival are yet to finish, so cottonseed oil price may go up steadily despite some fluctuations. Buyers are suggested to make some replenishment on the dips.


    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 dismal crush profits in oil mills under sluggish upward trend of cottonseed oil and cottonseed meal, and limited demand for cottonseed under low operating rate 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.