Today (Nov. 30th), the market for oilseeds and oils in China is shown as follows:
Oilseeds:
Imported soybean: Imported soybean price erases its loss to steady today, among which Non-GM Canadian soybean is not offered for out of stock, Russian soybean is 3,400 yuan/tonne, and GM soybean is not offered. Brazilian new soybean will be shipped to China as early as late December or early January, whilst China still possesses some stocks at present. Therefore, imported soybean market will be somewhat negative as later soybean supply gaps will be obviously smaller. Furthermore, soybean price in domestic distribution market will extend to go weak, if the US and China reach a deal to settle trade disputes over the dinner at UTC 5:00am this Sunday. On the contrary, the market will edge up. In such an uncertain case, buyers need to be on the alert.
Cottonseed: Cottonseed market is passive at present as oil mills have been cautious in purchasing and even stopped their purchase after being hit hard by continuous weak performance of cottonseed oil and meal, whilst the freight from Xinjiang to other domestic areas have dropped slightly. But the overall price decline is restricted under a small volume from Xinjiang under traffic tensions and expensive freights and ginning plants’ sentiment in hoarding to support the price. The market is in cautious mood on account of the upcoming meeting between the US and Chinese leaders early Sunday morning. On the whole, short-term cottonseed market will probably fluctuate narrowly to go weak, and buyers can take hand-to-mouth buying.
Oils:
Summary: US soybean erased gains to step down last night as investors closed their position after gaining on long positions, but oils on the Dalian Commodity Exchange (DCE) edge up modestly today. In spots market, domestic soybean meal goes up, so does palm oil partially, both trading a little. While domestic oil oversupply pattern still maintains, Brazilian soybean now grows well and will be harvested ahead of schedule. Additionally, buyers are mostly awaiting the meeting between the US and Chinese presidents this Sunday. Therefore, there is still little space for oil market to rebound. If the US and China reach a deal to settle trade disputes over the dinner at UTC 5:00am this Sunday, oil prices will extend to go down, otherwise, the prices will rally. Due to the uncertainties, buyers need to act cautiously provisionally.
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 5,310-5,320, Rizhao 5,400, Zhangjiagang 5,430, and Guangzhou 5,290).
Palm oil: 24-degree palm oil is mainly priced at 4,180-4,330 yuan/tonne in coastal areas, up 50-80 yuan/tonne partially. (Tianjin 4,320-4,330, unchanged; Rizhao not offered; Zhangjiagang 4,280, unchanged; Guangzhou 4,180, up 10; Xiamen not offered).
Imported rapeseed oil: The price for imported rapeseed oil stays stable to rise today, of which it is 6,170-6,370 yuan/tonne in coastal areas, up by 10-20 yuan/tonne partially. (Fujian not offered; Guangdong 6,280, up 20; Guangxi 6,180, stable). Oil stock still stays at a high level, whilst Brazil is to harvest its new soybean in advance and may ship some 3.0-3.5 Mln tonnes to China in January. In addition, imported rapeseed is now well-supplied. Therefore, rapeseed oil market may still get restrained by those bearish fundamentals. But later market will largely rely on the meeting result this Sunday morning. If there is no trade deal reached, oil market will go up, otherwise, it will still go weak. Buyers can just keep a slight stock at present.
Cottonseed oil: Soybean oil posts modest rises on the DCE today, and its spots increase by 10-30 yuan/tonne. And cottonseed oil stays stable today as oil mills are supporting the price for the small output and low prices. But cottonseed oil sees a small amount of new orders now due to its limited blend demand amid the ongoing oversupply of bulk oil. The outcome from the US and Chinese presidents meeting is hard to predict now, so buyers remain cautious in purchasing. Therefore, short-term cottonseed oil may fluctuate to go weak and buyers can just buy on actual demand.
(USD $1=CNY 6.94)
