Today (Nov. 14th), the market for oilseeds and oils in China is shown as follows:
Oilseeds:
Imported soybean: Imported soybean price stops rising to stabilize today, among which Non-GM Canadian soybean is not offered for out of stock, Russian soybean is unchanged at 3,600 yuan/tonne, and GM soybean is not offered. Importers are cautious in purchasing before the meeting between Chinese and US presidents, so no imported soybean will arrive at ports recently. 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 two countries’ presidents.
Cottonseed: Cottonseed oil and meal sectors extend their weak trends, and 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 goes lower fractionally at highs. 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, due to the weak performance of its by-products, short-term cottonseed market may present narrow fluctuations and buyers can just wait.
Oils:
Summary: US soybean closed lower last night on account of its growing inventory. Today oils on the Dalian Commodity Exchange runs lower from the previous session, despite a small rebound. And domestic soybean oil trades mixed and stabilizes to fluctuate, while palm oil falls broadly and trades low. US ambassador to China said Washington would reach a deal with Beijing on the back of a phone discussion to restart talks by Representatives of US Treasury Secretary Steven Mnuchin and Chinese Vice-Premier Liu He last Friday, after which traders become optimistic about a trade thaw. In addition, soybean oil still holds a high inventory of 1.81 Mln tonnes after a straight decline, and international crude oil has slid below 60 USD per barrel, which are also bearish to the overall oil market. However, due to the uncertainties in trade frictions, oil market will have little chance for further declines, and it will likely go weak to fluctuate before the meeting between Chinese and US presidents. Buyers can take hand-to-mouth basis.
Soybean oil: GB Grade I soybean oil is mainly priced at 5,340-5,430 yuan/tonne in domestic coastal areas, fluctuating by 10-30 yuan/tonne and trading at a mixing state. (Tianjin 5,370-5,380, Rizhao 5,420, Zhangjiagang 5,430, Guangzhou 5,340).
Palm oil: 24-degree palm oil is mainly priced at 4,310-4,450 yuan/tonne in coastal areas, down 20-40 yuan/tonne. (Tianjin 4,440-4,450, down 20; Rizhao not offered; Zhangjiagang 4,400, down 30; Guangzhou 4,310, down 40; Xiamen not offer).
Imported rapeseed oil: The price stays stable to rise today, of which it is 6,070-6,290 yuan/tonne in coastal areas, up 20-30 yuan/tonne. (Fujian 6,280, up 20; Guangdong 6,300, up 20; Guangxi 6,200, stable). US ambassador to China said Washington would reach a deal with Beijing on the back of a phone discussion to restart talks by Representatives of US Treasury Secretary Steven Mnuchin and Chinese Vice-Premier Liu He last Friday, after which traders become optimistic about a trade thaw. Besides, both rapeseed oil and soybean oil hold high inventories, while stockpiles in the run up to the Chinese Spring Festival will only start in December. In the meantime, Brazilian soybean might be harvested at an earliest date unseen in history. Therefore, rapeseed oil market will probably go weak to fluctuate by the end of November. If the trade dispute is settled at the meeting, the market will fall; but if not, it will rise.
Cottonseed oil: Cottonseed oil goes down by 30-100 yuan/tonne due to its low end demand amid an increased amount of new cottonseed oil, in addition to the oversupply of soybean oil. But soybean oil spots have increased by 10-30 yuan/tonne, while oil mills are supporting prices for small supply of cottonseed oil and its low prices, so cottonseed oil will have limited room for declines. On the whole, cottonseed oil market may fluctuate to post weak adjustments before the meeting between Chinese and US presidents later this month, so buyers can just wait.
(USD $1=CNY 6.95)
