Today (Nov. 19th), 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 price keeps steady today, which can be attributed to its small volume from Xinjiang amid traffic tensions and expensive freights, as well as ginning plants willingness to hoard for a higher price. But the overall market is now curbed as oil mills remain cautious in and have even stopped purchasing high-priced cottonseed in face of an increasing volume of new cottonseed, in addition to the weak performance of its by-product sectors. Oils and meals may burden with pressure due to a growing prospect of reaching a trade deal, so short-term cottonseed market may fluctuate frequently and buyers can just take hand-to-mouth basis.
Oils:
Summary: US soybean ended higher last Friday. But today oils on the Dalian Commodity Exchange (DCE) slip after a Bloomberg report on the weekend that US Presidents Donald Trump is upbeat about the trade deal after receiving written responses from China and he may not increase the tariffs. And domestic soybean oil and palm oil spots both fall and trade a little. While forward soybean in China will present a far smaller-than-anticipated supply gap after Brazil ships a higher-than-expected volume of old soybean when its new soybean will be harvested within a month, an overall oversupply pattern of oils is yet to ease at present as palm oil inventory is predicted to reach a total of 8.0 Mln tonnes in Indonesia and Malaysia by the end of this year. Therefore, oil market will post weak fluctuations before the meeting between the US and Chinese presidents later this month. If trade disputes are settled at that time, oil market will extend its weak trend before the start of stockpiles in the run up to the Chinese Spring Festival; but if not, it will rebound. Currently, it will be better to keep a light stock on account of the uncertainty in trade frictions.
Soybean oil: GB Grade I soybean oil is mainly priced at 5,310-5,400 yuan/tonne in domestic coastal areas, down 10-40 yuan/tonne. (Tianjin 5,340-5,350, Rizhao 5,400, Zhangjiagang 5,400, and Guangzhou 5,310-5,320).
Palm oil: 24-degree palm oil is mainly priced at 4,200-4,380 yuan/tonne in coastal areas, down 20-60 yuan/tonne partially. (Tianjin 4,340-4,350, down 20; Rizhao not offered; Zhangjiagang 4,290, down 40; Guangzhou 4,200, down 60; Xiamen 4,380, down 20).
Imported rapeseed oil: The price for imported rapeseed oil stays stale to rise today, of which it is 6,030-6,250 yuan/tonne in coastal areas, some down 20 yuan/tonne. (Fujian 6,100, down 20; Guangdong 6,020; Guangxi 6,060, down 20). Rapeseed oil market is now dragged down by its own high inventories, which have increased marginally to a total of 550,000 tonne in South China and East China together, in addition to the high stock of soybean oil as well as heavy pressure of palm oil stockpiles in production countries. But amid the uncertainty in trade disputes, rapeseed oil market will see no further slump and may maintain weak fluctuations by the end of this month, so buyers can just keep a light stock.
Cottonseed oil: Cottonseed oil price remains stable today, for oil mills are reluctant to sell at low prices and amid dismal crush margins. But oils on the DCE broadly fall as US President Donald Trump is upbeat about reaching trade deal and may not increase tariffs on Chinese goods. Cottonseed oil market is restricted by its small trading volume amid limited blending demand, in addition to soybean oil decline of 10-40 yuan/tonne today amid high pressure in bulk oils. On the whole, short-term cottonseed oil market may fluctuate at a narrow range and buyers can just wait and see.
(USD $1=CNY 6.94)
