Today (Nov. 22nd), the market for oilseeds and oils in China is shown as follows:
Oilseeds:
Imported soybean: Imported soybean price keeps 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. Soybean market now is supported by its supply dips in imported distribution market at port, especially when there is no arrivals of soybean recently as Chinese importers are taking a cautious approach before the meeting between the US and China next week. But domestic market turns negative today for improving trade tensions after a report that US decided not to send White House adviser Peter Navarro (the radical China hawk) to attend the President Trump-President Xi meeting. Generally, as the wait-and-see mood remains strong amid uncertainties in trade disputes, distribution market will probably stay stable to adjust narrowly.
Cottonseed: Cottonseed slips by 0.02-0.04 yuan/kg today as oil mills are cautious in purchasing high-priced cottonseed amid dismal crush margins and growing amounts of new cottonseed. But ginning plants are supporting the price for weak lint performance and poor processing profits, in addition to the small volume from Xinjiang under traffic tensions and expensive freights, so there is limited room for cottonseed to decline. With the upcoming meeting between the US and Chinese leaders, short-term cottonseed market will probably fluctuate narrowly on the back of weak fluctuations of oil and meal prices.
Oils:
Summary: US soybean closed higher last night for improving market sentiment on trade tensions after US President Donald Trump told reporters that negotiations between Washington and Beijing go really well and that Beijing wants a deal, in addition to a report that US decided not to send White House adviser Peter Navarro (the radical China hawk) to attend the President Trump-President Xi meeting. And today on Dalian Commodity Exchange, soybean oil runs below the previous closing price while palm oil posts rebounds, and in spot prices, domestic soybean oil keeps steady to decline while palm oil goes up partially, both trading a little. As an oversupply pattern continues amid slow shipments, plus by large domestic oil inventories and huge palm oil stockpiles in Southeast Asia, short-term oil market will be weak to rebound and may extend weak fluctuations before the meeting next week. And buyers are suggested to take hand-to-mouth basis.
Soybean oil: GB Grade I soybean oil is mainly priced at 5,260-5,380 yuan/tonne in domestic coastal areas, down 10-30 yuan/tonne. (Tianjin 5,310-5,320, Rizhao 5,380, Zhangjiagang 5,390, and Guangzhou 5,260-5,270).
Palm oil: 24-degree palm oil is mainly priced at 4,140-4,290 yuan/tonne in coastal areas, up 20-40 yuan/tonne partially. (Tianjin 4,280-4,290, unchanged; Rizhao not offered; Zhangjiagang 4,250, up 40; Guangzhou 4,140, up 20; Xiamen not offered).
Imported rapeseed oil: The price for imported rapeseed oil steps down today, of which it is 6,060-6,300 yuan/tonne in coastal areas, fluctuating by 10-20 yuan/tonne (Fujian 6,120; Guangdong 6,070; Guangxi 6,100). While the oversupply pattern continues amid large domestic oil and rapeseed oil inventories as well as huge stockpiles of global palm oil, Brazil is going to harvest its new soybean in mid-to-late December. Therefore, short-term rapeseed oil market will be weak to rebound and may extend weak fluctuations on the back of its futures before the meeting next week. And buyers are suggested to take hand-to-mouth basis.
Cottonseed oil: Soybean oil spots decline by 10-30 yuan/tonne due to the oversupply of bulk oil, in addition to a report that US President Donald Trump thinks negotiations between Washington and Beijing go really well. And cottonseed oil sheds 100 yuan/tonne at highs due to its few deals amid limited blending demands. But cottonseed oil is now of small output under low operation rate in oil mills. On the whole, as buyers are cautious before the meeting next week, short-term cottonseed oil market may fluctuate narrowly.
(USD $1=CNY 6.93)
