Today (Nov. 26th), 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. Currently , more and more oil plants choose to process domestic soybean, whilst oil mills in South America are active in reselling their stock due to dismal crush margins so that Brazil may ship a higher-than-forecast volume of 5.10 Mln tonnes of soybean to China in November. Besides, even if trade conflicts keep mounting, soybean supply gap will be far smaller-than-expected as Brazil is to harvest its early soybean in mid-to-late December after seeding at a record speed. Both factors are bearish to domestic distribution market of imported soybean. However, 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 have been cautious before the meeting between the US and China this week. 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 approach 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. And buyers can take hand-to-mouth buying.
Oils:
Summary: US soybean closed lower last Friday as market has been taking a skeptical attitude about the meeting this week. Today soybean oil on the Dalian Commodity Exchange (DCE) presents temperate rebounds while palm oil falls back modestly, followed by the spot price to trade a little. Soybean oil stock has fallen to 1.80 Mln tonnes last week as the crush volume has dwindled to 1.69 Mln tonnes due to swollen inventories of soybean meal and soybean shortage. Besides, soybean oil prices have been buoyed to rebound at lows by the uncertainties in the upcoming US-China talks. However, the oversupply of oils still continues, whilst later soybean supply gap will be smaller than forecast as Brazil will be able to harvest its new soybean in mid-to-late December. In this context, there will be little room for oils to rebound, and oil market will probably extend its fluctuations before the meeting. Buyers can just keep a light stock.
Soybean oil: GB Grade I soybean oil is mainly priced at 5,290-5,430 yuan/tonne in domestic coastal areas, up 10-30 yuan/tonne partially. (Tianjin 5,330-5,340, Rizhao 5,390, Zhangjiagang 5,430, and Guangzhou 5,290-5,300).
Palm oil: 24-degree palm oil is mainly priced at 4,160-4,320 yuan/tonne in coastal areas, down 10-20 yuan/tonne partially. (Tianjin 4,310-4,320, up 40; Rizhao not offered; Zhangjiagang 4,300, stable; Guangzhou 4,160, down 20; 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 not offered; Guangdong 6,110; Guangxi 6,160). Rapeseed oil market is now stronger than other oils, which can be contributed to the sale completion of rapeseed oil and the start of small package oil stockpiles. But its stock has hit a six-year highest point of 627,000 tonnes by a weekly increase ratio of 10% in coastal areas. What’s more, Brazil will be able to harvest its new soybean in mid-to-late December. Therefore, rapeseed oil spots market will have limited room for rises in the short term and later trend will be guided by the meeting outcomes. Buyers are suggested not to force up the price excessively and to consider the replenishment on the dips upon price callbacks.
Cottonseed oil: Soybean oil posts modest rises on the DCE today, followed by its spots to gain 10-30 yuan/tonne. But cottonseed oil prices see some losses at highs, for it trades light when its blending demand is limited under the bulk oil glut pattern. And the price decline now is limited by oil mills’ efforts to support the price for the small output and current low prices. On the whole, buyers have been cautious with the upcoming meeting between the US and Chinese presidents, so short-term cottonseed oil market will likely post narrow fluctuations and buyers can just take hand-to-mouth buying.
(USD $1=CNY 6.95)
