Today (Nov. 21st), the market for oilseeds and oils in China is shown as follows:
Oilseeds:
Imported soybean: Imported soybean price stops falling to steady today, among which Non-GM Canadian soybean is not offered for out of stock, Russian soybean is 3,580 yuan/tonne, and GM soybean is not offered. Distribution market of imported soybean turns positive for a souring US-China tension after the USTR office updated Section 301 investigation declaring that China has not fundamentally altered its “unfair” trade practices. In addition, importers are cautious in purchasing with the upcoming meeting between Chinese and US presidents later this month, 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 prices see some increases of 0.02 yuan/kg for its small volume from Xinjiang under traffic tensions and expensive freights, in addition to ginning factories’ efforts to support weak lint market and relatively low-priced cottonseed. But the prices also see some losses of 0.04 yuan/kg as oil mills are cautious in purchasing high-priced cottonseed amid dismal crush margins while new cottonseed is on the rise. With the upcoming meeting between the US and Chinese presidents later this month, oil and meal markets extend their week fluctuations, so short-term cottonseed market will probably post narrow fluctuations.
Oils:
Summary: Oils slip in early tradings on the Dalian Commodity Exchange (DCE) due to US stocks and crude oil slumps, but soybean oil erases its losses to edge higher and palm oil recoups its declines upon an aggravating US-China tension after the USTR office updated Section 301 investigation declaring that China has not fundamentally altered its “unfair” trade practices. And the spot price, domestic soybean oil goes up, while palm oil goes down, both attracting some replenishment at lows yet just in small volume. Oil oversupply continues under huge inventories of domestic soybean oil and international palm oil, coupled by new soybean harvesting available in less than one month in Brazil, so short-term market will be weak to rebound sharply, and will likely extend weak fluctuations. Buyers are suggested to keep a light stock while waiting for the guidance from the meeting outcomes later this month.
Soybean oil: GB Grade I soybean oil is mainly priced at 5,310-5,420 yuan/tonne in domestic coastal areas, up 10-20 yuan/tonne. (Tianjin 5,320-5,330, Rizhao 5,380, Zhangjiagang 5,420, and Guangzhou 5,310-5,320).
Palm oil: 24-degree palm oil is mainly priced at 4,140-4,300 yuan/tonne in coastal areas, down 20-100 yuan/tonne partially. (Tianjin 4,290-4,300, down 20; Rizhao not offered; Zhangjiagang 4,210, down 40; Guangzhou 4,140, down 20; Xiamen 4,250, down 100).
Imported rapeseed oil: The price for imported rapeseed oil steps down today, of which it is 6080-6320 yuan/tonne in coastal areas, up 50-100 yuan/tonne (Fujian 6,150, up 70; Guangdong 6,070; Guangxi 6,100, up 70). While China still hold high inventories of soybean oil and rapeseed oil, Brazil will be able to harvest its soybean within one month. In addition, due to large inventory of global palm oil and downside of international crude oil, rapeseed oil market will find it hard to soar before the meeting between the US and Chinese presidents later this month. And the overall market may fluctuate on the back of trade news, so buyers are suggested to keep a light stock.
Cottonseed oil: Cottonseed oil slips at highs today due to its few deals amid limited blending amount and the oversupply pattern of bulk oil. But oils rebound on the DCE after the US declared that China has not fundamentally altered its “unfair” trade practices. Soybean oil spots go up by 10-20 yuan/tonne, while the loss of cottonseed oil is limited by its small output and low price. Buyers tend to take a cautious approach with the upcoming meeting between the US and Chinese presidents, so short-term cottonseed oil may fluctuate narrowly.
(USD $1=CNY 6.94)
