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Daily Review on Markets for Oilseeds and Oils in China

2018-11-08 www.cofeed.com
      Today (Nov. 8th), the market for oilseeds and oils in China is shown as follows:

      Oilseeds:

  Imported soybean: Imported soybean price stops falling to steady today, of which Non-GM Canadian soybean is not offered for out of stock, Russian soybean is unchanged at 3,590 yuan/tonne, and GM soybean is not offered. Importers need to be cautious before the meeting between Chinese and US presidents. Besides, no imported soybean will arrive at ports recently, so the overall market is now supported by the small supply in distribution market at ports. On the whole, distribution market will probably stay stable to adjust narrowly before the meeting between the presidents.    

  Cottonseed: There are still uncertainties in trade disputes, while cottonseed from Xinjiang is limited by traffic tensions and expensive freights; hence, cottonseed price to factory is going up today. But due to the weak performance of cottonseed oil and meal, poor crush profits in oil mills and an increased amount of new cottonseed, oil mills are cautious against purchasing high-priced cottonseed and mostly take hand-to-mouth basis. In this context, cottonseed market gets curbed. Due to the weaker performance of oil and meal in afternoon trade, short-term cottonseed market may present narrow fluctuations, and buyers can just wait on the sidelines.      

      Oils:

  Summary: US soybean extended to fall, while its oil edged up last night, and today oils on the Dalian Commodity Exchange (DCE) fluctuate to step down. Domestic soybean oil and palm oil spots both post some fluctuations. Soybean supply gap in China may be far smaller than expected, for Brazil is still signing contracts for December and its new soybeans are planted at an unprecedented speed. Meanwhile, soybean oil inventory keeps hovering near the historical high level, creating an oversupply pattern. Therefore, oil market still gets curbed by such bearish fundamentals. Oils on the DCE take plunge after foreign media reporting that Chinese and US presidents have reached consensus on bilateral relationships; therefore, oil market may run weak to fluctuate before the meeting between the two presidents later this month. Buyers can just wait and keep an eye on USDA’s report tonight.
      
  Soybean oil: GB Grade I soybean oil is mainly priced at 5,420-5,500 yuan/tonne in domestic coastal areas, some down by 10-20 yuan/tonne (Tianjin 5,450-5,460, Rizhao 5,460, Zhangjiagang 5,480, Guangzhou 5,410-5,420). 

  Palm oil: 24-degree palm oil is mainly priced at 4,480-4,610 yuan/tonne in coastal areas. (Tianjin 4,600-4,610, unchanged; Rizhao not offered; Zhangjiagang 4,550, unchanged; Guangzhou 4,480, unchanged; Xiamen 4,580). 
            
  Imported rapeseed oil: The price for imported rapeseed oil remains basically stable today, of which it is 6,130-6,330 yuan/tonne in coastal areas, some down by 10 yuan/tonne. (Fujian 6,320; Guangdong 6,310, down 10; Guangxi 6,250, stable). While both rapeseed oil and soybean oil hold high inventories amid high operation rate in oil mills, stockpiles in the run up for Chinese Spring Festival will only start in December. Besides, Brazilian soybeans are planted at an unprecedented speed, under which forward soybean supply gap may be far smaller than expected. And today after foreign media reporting that Foreign Minister of China says the meeting between Chinese and US presidents at G20 summit will be of great significance to both sides, oil futures see further declines in afternoon trade due to a possibly easing trade state. In general, short-term rapeseed oil market may maintain a weak trend to fluctuate, and buyers can just wait and keep an eye on USDA’s report tonight.        
 
  Cottonseed oil: Oils on the DCE fluctuate to edge lower today, and soybean oil spots fluctuate by 10-20 yuan/tonne. Cottonseed oil stops rising to steady today as it trades flat when its demand is limited amid an increased amount of new cottonseed oil, in addition that soybean oil also holds a historical high inventory. But the overall market is still propped up, for oil mills are supporting the price in view of limited supply and low prices amid dismal crush margins and growing cottonseed price. Overall, short-term cottonseed oil price may fluctuate narrowly.   

(USD $1=CNY 6.93)