Today (Nov. 15th), the market for oilseeds and oils in China is shown as follows:
Oilseeds:
Imported soybean: Imported soybean price stays stable 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 steps down by 0.01-0.04 yuan/kg, for oil mills remain cautious in purchasing high-priced cottonseed and some have even suspended as new cottonseed is on the rise, aside from the weak performance of cottonseed oil and meal. But cottonseed from Xinjiang is small in volume, in addition that ginning plants are holding their stock to support the price, so there is limited room for cottonseed to decline. Due to the relatively weak trend of its by-products, short-term cottonseed may go weak to fluctuate, and buyers can just wait.
Oils:
Summary: US soybean presented modest rebounds last night, and oils on the Dalian Commodity Exchange post small technical rebounds today after straight slumps in the past few days. Domestic oil spots broadly stop rising and some rebound to attract some trading volume, but the total volume is low. Domestic oil market is dragged down by international crude oil slumps and weak performance of palm oil, which has fallen below 2,000 MYR unseen for three years in Malaysia. Besides, there are signs of trade thaws after the restart of talks between Chinese and the US high-level officials. Meanwhile, the oversupply pattern persists as soybean oil still stays at a high level of 1.80 Mln tonnes. Therefore, oil market will remain weak in spite of the small rebounds. Buyers out of stock can try to replenish in small amounts on the dips, but not resort to bargain-hunting before setting a bottom.
Soybean oil: GB Grade I soybean oil is mainly priced at 5,290-5,380 yuan/tonne in domestic coastal areas, up 10-30 yuan/tonne. (Tianjin 5,330-5,350, Rizhao 5,380, Zhangjiagang 5,380, and Guangzhou 5,290).
Palm oil: 24-degree palm oil is mainly priced at 4,240-4,390 yuan/tonne in coastal areas, up 10-20 yuan/tonne partially. (Tianjin 4,370-4,390, down 10; Rizhao not offered; Zhangjiagang 4,320, up 20; Guangzhou 4,240-4,250, up 10; Xiamen not offer).
Imported rapeseed oil: The price for imported rapeseed oil remains stable to rise, of which it is 6,000-6,210 yuan/tonne in coastal areas, up 20 yuan/tonne. (Fujian 6,140, up 20; Guangdong 6,000, up 20; Guangxi 6,200). On one hand, rapeseed oil stock has risen by 4% weekly to 550,000 tonnes nationwide, while soybean oil also stays near a historical high inventory in spite of some declines. On the other hand, oil mills are slow in shipping due to the weak end demand. And forward soybean supply gaps in China may be smaller than expected as top exporter Brazil has seeded their soybean at a record pace. Besides, hopes of a trade thaw rose on a foreign report that Chinese Vice Premier, Liu He, was preparing to visit the US ahead of a meeting between the two countries' leaders later this month. Therefore, short-term domestic rapeseed oil market is predicted to remain weak, and buyers can take hand-to-mouth basis while waiting for the guidance from the meeting later this month.
Cottonseed oil: US soybean rebounded fractionally overnight on account of the slower-than-expected harvest progress and improved exports, so do oils on the DCE today. Cottonseed oil price is stable today, for oil mills tend to support the price amid dismal crush margins and low prices, in addition to soybean oil gains of 10-30 yuan/tonne. But bulk oil is still under heavy pressure in stock. Besides, hopes of a trade thaw rose on a foreign report that Chinese Vice Premier, Liu He, was preparing to visit the US ahead of a meeting between the two countries' leaders later this month. Therefore, short-term cottonseed oil may still fluctuate to have weak adjustments.
(USD $1=CNY 6.94)
