Today (Nov. 12th), the market for oilseeds and oils in China is shown as follows:
Oilseeds:
Imported soybean: Imported soybean price stays stable to rise today, of which Non-GM Canadian soybean is not offered for out of stock, Russian soybean is 3,600 yuan/tonne, up 10 yuan/tonne from last Friday, 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 futures extend to lose on the Dalian Commodity Exchange (DCE) today, and cottonseed oil and meal sectors also continue to go weak. 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. In this context, cottonseed drops by 0.01-0.04 yuan/kg. But there are still uncertainties in trade disputes and the volume from Xinjiang is small due to traffic tensions and expensive freights, so cottonseed price will see small chance for slumps. Generally, short-term cottonseed market may present narrow fluctuations and buyers can just wait.
Oils:
Summary: In response the news that China and US presidents would meet to settle trade frictions later this month, US soybean gained last Friday, while oils on the DCE extend their declines today, led by palm oil. And both domestic soybean oil and palm oil spots go down and trade flat today. The crush volume has dwindled to 1.69 Mln tonnes by 9% as operation rate has dropped sharply for the China International Import Expo in Shanghai and soybean shortage in some mills. In the meantime, soybean oil sees limited space for spot price declines as its inventory has reduced to around 1.83 Mln tonnes. But the oversupply pattern still continues under the weak end demand, and there is a growing possibility for a thaw in trade disputes at the meeting between China-US presidents; hence, oil market will probably go weak to fluctuate before the meeting, and buyers cab take hand-to-mouth basis.
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 5,350-5,360, Rizhao 5,400, Zhangjiagang 5,400, Guangzhou 5,310).
Palm oil: 24-degree palm oil is mainly priced at 4,310-4,430 yuan/tonne in coastal areas, down 50-90 yuan/tonne. (Tianjin 4,420-4,430, down 90; Rizhao not offered; Zhangjiagang 4,400, down 50; Guangzhou 4,310, down 70; Xiamen not offer).
Imported rapeseed oil: The price for imported rapeseed oil declines today, of which it is 6,020-6,250 yuan/tonne in coastal areas, down 50-70 yuan/tonne. (Fujian 6,160; Guangdong 6,250, down 60; Guangxi 6,200, down 50). Rapeseed oil market is now dragged down by the following factors. Its own inventory has risen slightly to 154,000 tonne in South China and has increased by 4% to 390,000 tonnes in East China. And for its peers, soybean oil holds a high inventory, and palm oil also has the pressure on the stock in production areas. However, there are still uncertainties in the trade war, for which US and China presidents will meet on the sidelines of the G20 Summit later this month, so short-term rapeseed oil market will maintain weak turbulence, and buyers can just wait.
Cottonseed oil: Oils on the DCE extend to fall today. Soybean oil spots slip by 10-40 yuan/tonne due to its historical high inventories. And cottonseed oil falls by 50-80 yuan/tonne fractionally due to its limited end demand yet an increased volume of new cottonseed oil. But oil mills are supporting the price for the small supply in face of dismal crush profits amid relatively high price of cottonseed, so there is limited space for price falls. On the whole, short-term cottonseed oil may fluctuate to post weak adjustments, so buyers can just wait.
(USD $1=CNY 6.96)
