Today (Nov. 23rd), 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 is now supported by its supply dips in imported distribution market at port, especially when there is no arrival of soybean recently as Chinese importers are taking a cautious approach before the meeting between the US and China next week. But later soybean will post a smaller-than-expected supply gap as Brazil will be able to harvest its early soybean in mid-to-late December. Generally, as the wait-and-see mood remains strong in market amid uncertainties in trade disputes, distribution market will probably stay stable to adjust narrowly.
Cottonseed: Cottonseed price remains stable today, for ginning plants are hoarding to support the price amid dismal processing profits, in addition to a small volume from Xinjiang under traffic tensions and expensive freights. But oil mills still take a cautious in purchasing due to the weak trend of cottonseed oil and cottonseed meal and the increasing amount of new cottonseed on the market. 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 stocks closed for the Thanksgiving Day last night. Today soybean oil gives back its early gains after a higher open on Dalian Commodity Exchange (DCE), while palm oil moves higher after Malaysia declared it targets to implement the B10 biodiesel programme by stages from December 1. Domestic soybean oil spots are in a mixed territory while palm oil increases, both trading a little. Oil is in a supply glut due to large soybean oil stock and heavy inventory pressure of palm oil in Southeast Asia, whilst Brazil is going to harvest its early soybean in mid-to-late December; hence, soybean will be able to narrow down its supply gap largely. Overall, oil market will extend to fluctuate frequently before the meeting between the US and Chinese presidents next week, before which the market trend direction will remain unknown. Buyers can take hand-to-mouth basis.
Soybean oil: GB Grade I soybean oil is mainly priced at 5,260-5,400 yuan/tonne in domestic coastal areas, fluctuating by 10-20 yuan/tonne. (Tianjin 5,330-5,340, Rizhao 5,390, Zhangjiagang 5,400, and Guangzhou 5,260).
Palm oil: 24-degree palm oil is mainly priced at 4,180-4,330 yuan/tonne in coastal areas, up 40-50 yuan/tonne partially. (Tianjin 4,320-4.330, up 40; Rizhao not offered; Zhangjiagang 4,300, up 50; Guangzhou 4,180, up 40; Xiamen not offered).
Imported rapeseed oil: The price for imported rapeseed oil goes up today, of which it is 6,100-6,340 yuan/tonne in coastal areas, up 20-30 yuan/tonne (Fujian 6,150, up 30; Guangdong 6,110; Guangxi 6,120). Domestic rapeseed oil market rebounds, for deals have turned better with the start of small-package oil stockpiles in East China, temporary rapeseed oil sellout has basically completed, and bottom hunters have flooded into the market for recent low prices. But rapeseed oil spots is hard to achieve further rises due to the large inventory of soybean oil and rapeseed oil, in addition to the soybean harvest in mid-to-late December in Brazil. Generally speaking, the overall market will be guided by the meeting outcome between the US and Chinese presidents next week, when the market will fall if a trade deal is reached but will rally if not. Buyers are suggested to take hand-to-mouth basis.
Cottonseed oil: Soybean oil fluctuates to slip after a higher open on the DCE, and its spots also fluctuate by 10-20 yuan/tonne. Cottonseed oil stops falling to steady today as oil mills are supporting the price amid the low price and small output. But its deals are unobserved since its blending amount is limited by the bulk oil glut and weak crude oil performance. Buyers remain cautious in purchasing on account of the meeting next week, so short-term cottonseed oil may fluctuate narrowly and buyers can take hand-to-mouth basis.
(USD $1=CNY 6.93)
