Today (Nov. 16th), 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: Oils and soybean meal on the Dalian Commodity Exchange (DCE) present sharp rebounds today. Cottonseed price stops falling to steady since the volume from Xinjiang is limited by traffic tensions and expensive freights, in addition to ginning plants willingness to hoard for a higher price. But cottonseed market is inactive, for oil mills are cautious in purchasing high-priced cottonseed in view of weak by-product performance and increased amounts of new cottonseed on the market. On the whole, short-term cottonseed market will likely post frequent fluctuations, so buyers can just take hand-to-mouth tactic.
Oils:
Summary: US soybean pointed to another rebound last night. US Commerce Secretary Wilbur Ross expected the US and China would reach a framework agreement at best on the G20 sidelines and the US would raise the tariff on Chinese goods on January 1 as planned. After this report, investors started to cover after profit-taking on short positions. Today soybean oil on the DCE logs in sharp rebounds and its spots also edge higher, but palm oil spots steady to fluctuate and trade better at low prices after its futures slip on the DCE. Domestic soybean market will see a smaller-than-anticipated supply gap after buying a higher-than-expected volume of old soybean, in addition that Brazil has seeded its new soybean at a record pace. Moreover, oil market is still trapped in an oversupply pattern, whilst the market forecasts a rise to 8 Mln tonnes of palm oil inventories in Indonesia and Malaysia. In this context, oil market will be weak to show sharp rebound and will go weak to fluctuate before the meeting between the US and Chinese presidents later this month. Buyers can just keep a light stock at present and replenish in small batches if out of stock rather than chasing up excessively.
Soybean oil: GB Grade I soybean oil is mainly priced at 5,330-5,440 yuan/tonne in domestic coastal areas, up 20-60 yuan/tonne. (Tianjin 5,370-5,380, Rizhao 5,420, Zhangjiagang 5,440, and Guangzhou 5,330-5,340).
Palm oil: 24-degree palm oil is mainly priced at 4,230-4,390 yuan/tonne in coastal areas, fluctuating by 10-20 yuan/tonne partially. (Tianjin 4,370-4,390, unchanged; Rizhao not offered; Zhangjiagang 4,330, up 10; Guangzhou 4,230-4,240, down 20; Xiamen 4,400).
Imported rapeseed oil: The price for imported rapeseed oil stays stable to rise slightly, of which it is 6,030-6,250 yuan/tonne in coastal areas, up 10-20 yuan/tonne partially. (Fujian 6,160, up 20; Guangdong 6,020, up 20; Guangxi 6,200, stable). While rapeseed oil and soybean oil still hold high inventories, stockpiles in the run up to the Chinese Spring Festival will only start in December. And domestic soybean market will see a smaller-than-expected supply gap since Brazil has seeded its soybean at a record speed. Therefore, rapeseed oil market is not powerful enough to post sharp rebounds and will have remained weak fluctuations by the end of November. Buyers can replenish with a small amount on the dips and must be cautious in chasing up the price.
Cottonseed oil: Soybean oil rebounds sharply on the DCE after a report that US Commerce Secretary expressed a cautious view on US and Chinese presidents to reach a trade truce on the sidelines later this month. Cottonseed price is supported to remain stable by its low price and dismal crush margins in oil mills, in addition to a soybean oil spot hike by 20-60 yuan/tonne. But cottonseed oil price is hard to go up as its new deals are lessened by limited blending demands when bulk oils are in large inventories. On the whole, short-term market may fluctuate narrowly and buyers can replenish in small batches on the dips.
(USD $1=CNY 6.94)
