Today (Nov. 27th), 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. In a report by Bloomberg, US President Donald Trump said that U.S. is highly unlikely to accept China's request to halt a planned increase in existing tariffs on Chinese goods, and the only deal would be that China has to open up their country to competition from the United States. Besides, he said he expects to move ahead with raising tariffs on $200 billion in Chinese imports to 25 percent since January 1st, 2019, if the two countries fail to reach a deal on the sidelines of G20 summit later this month. In this context, domestic distribution market of imported soybean turns bullish upon trade concerns. However, Brazil may ship a higher-than-forecast volume of 5.10 Mln tonnes of soybean to China in November, whilst it will be able to harvest its new early soybean in mid-to-late December after seeding at a record pace; hence, later soybean supply will post a smaller-than-expected gap even if trade war sours. And this will certainly bring bearish pressure to the imported soybean market. In general, 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. As market is in a cautious mood on account of 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 continued to close lower last night amid trade concerns. And today soybean oil edges down on the Dalian Commodity Exchange, and palm oil posts sharp losses, for its futures on Bursa Malaysia Derivatives Exchange were pressured to slump by 3.9% yesterday after Indonesia cut its palm oil export fee from $50 to zero. And soybean oil spot prices fall and palm oil spots sink, both trading low now. Although soybean oil stocks have slid as operation rate has been reduced amid swollen soybean meal inventory, oil market still extends its oversupply pattern. In the meantime, South American soybean may be marketed ahead of time this year. Therefore, oil market is continued to be curbed. But in a latest interview, Trump said he expects to move ahead with raising tariffs on $200 billion in Chinese imports, and if he would also impose tariffs on the rest $267 billion worth of goods if the two countries fail to reach a deal. Generally speaking, short-term oil market will probably maintain weak fluctuations amid trade uncertainties, and buyers can take hand-to-mouth basis while waiting for the guidance from meeting outcomes later this week.
Soybean oil: GB Grade I soybean oil is mainly priced at 5,240-5,400 yuan/tonne in domestic coastal areas, down 20 yuan/tonne partially. (Tianjin 5,300-5,310, Rizhao 5,380, Zhangjiagang 5,400, and Guangzhou 5,240).
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, down 10; Rizhao not offered; Zhangjiagang 4,300, stable; Guangzhou 4,160, down 20; Xiamen not offered).
Imported rapeseed oil: The price for imported rapeseed oil stays stable to fall slightly today, of which it is 6,150-6,360 yuan/tonne in coastal areas, down 10-20 yuan/tonne. (Fujian not offered; Guangdong 6,310; Guangxi 6,140, down 20). Inventories of soybean oil and rapeseed oil still hover at high levels, while Brazil will be able to harvest its new soybean as early as mid-to-late December. Besides, the US and Chinese presidents will meet later this week. Therefore, rapeseed oil market will probably extend weak fluctuations, and buyers can just keep a light stock while awaiting the meeting outcomes.
Cottonseed oil: Cottonseed oil price keeps steady today, for its declines are restricted by oil mills’ efforts in supporting price amid small output and low prices. Today soybean oil on the DCE fluctuate to go lower, and soybean oil spots fall by 20 yuan/tonne and palm oil spots slump by 60-100 yuan/tonne amid an ongoing oil glut. Cottonseed oil have been trading a little for limited blending demand. 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 fluctuations and buyers can just take hand-to-mouth buying.
(USD $1=CNY 6.94)
