Today (Nov. 9th), the market for oilseeds and oils in China is shown as follows:
Oilseeds:
Imported soybean: Imported soybean price stops falling to stabilize 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 on distribution market at ports. Generally, distribution market will probably stay stable to adjust narrowly before the meeting between the presidents.
Cottonseed: Cottonseed gains partially at lows as there are still uncertainty in the trade dispute and the volume from Xinjiang is small due to traffic tensions and expensive freights. But futures on the Dalian Commodity Exchange (DCE) step down, and cottonseed oil and meal sectors also run lower. Besides, oil mills remain cautious and mostly take hand-to-mouth basis in face of high-priced cottonseed when the new cottonseed is on the rise. Generally, short-term cottonseed market may present narrow fluctuations and buyers can just wait.
Oils:
Summary: US soybean edged down last night due to the bearish USDA’s report as expected, and today oils on the DCE extend their declines. Domestic soybean oil and palm oil spots both fall and trade flat. The oversupply pattern extends amid the ailing end demand, with soybean oil stock high at 1.84 Mln tonnes. And a somewhat easing trade state has triggered declines on domestic oil board, presenting further declines today. Therefore, oil spots continue to bear pressure. Lack of bullish support, overall oil market may go weak to fluctuate before the meeting between US and Chinese presidents later this month. If the two countries fail to reach common census at that time or the peak season of stockpiles in the run up to the Chinese Spring Festival starts, then oil market will be boosted to rally, so buyers can just wait on the sidelines.
Soybean oil: GB Grade I soybean oil is mainly priced at 5,320-5,410 yuan/tonne in domestic coastal areas, down 20-50 yuan/tonne (Tianjin 5,400-5,410, Rizhao 5,420, Zhangjiagang 5,400, Guangzhou 5,320).
Palm oil: 24-degree palm oil is mainly priced at 4,370-4,520 yuan/tonne in coastal areas, down 50-70 yuan/tonne. (Tianjin 4,510-4,520, down 50; Rizhao not offered; Zhangjiagang 4,450, down 50; Guangzhou 4,370, down 70; Xiamen not offer).
Imported rapeseed oil: The price for imported rapeseed oil steps down today, of which it is 6,060-6,300 yuan/tonne in coastal areas, down 20-30 yuan/tonne. (Fujian 6,260; Guangdong 6,280, down 30; Guangxi 6,200, down 50). While rapeseed oil and soybean oil both hold high inventories due to high operation rate, oil mills are slow in delivering amid weak end demand. In addition, forward soybean supply gap will be smaller than expected as Brazilian soybean is now planted at an unprecedented pace. However, US- China trade war cannot see a clear future now, so the market is still waiting for the meeting between the two presidents at G20 Summit later this month. In general, short-term rapeseed oil market may maintain within a weak state to fluctuate, so buyers can just wait and see.
Cottonseed oil: Oils on the DCE continue to fall today, and soybean oil spots drop by 20-50 yuan/tonne amid its historical high inventory. And cottonseed oil also sees some declines of 50-100 yuan/tonne due to its low demand and flat trading in the period when new cottonseed oil is on the rise. But its decline is limited when oil mills are supporting the price due to dismal crush margins versus high-priced cottonseed, and small supply, as well as low prices. On the whole, short-term cottonseed oil market may fluctuate to adjust, and buyers can just wait.
(USD $1=CNY 6.95)
