Today (Dec. 14th), 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 unchanged at 4,050 yuan/tonne and Russian soybean at 3,400 yuan/tonne, and GM soybean is not offered. However, Brazilian soybean is about to be harvest this weekend and US soybean import is yet to finish, while the market is still digesting the negative impacts from US soybean imports and is in a slow shipment state. Therefore, soybean market is being cracking down. Generally speaking, soybean price in distribution market will run weak in fluctuation.
Cottonseed: Oil mills find it hard to move on amid continued weak performance of cottonseed by-products, especially cottonseed meal so that they become less willing to power on their machines, in addition to the?reduced demand. Therefore, cottonseed price steps down by 0.01 yuan/kg today. However, the volume available from Xinjiang to other parts of China is small when ginning plants are reluctant to sell, in addition to high freight cost; hence, the price will not drop further. Domestic market is still digesting negative impacts brought by substantial US soybean imports. Overall, short-term cottonseed market will probably present narrow fluctuations to go weak amid the trade truce, and buyers can just wait on the sidelines. ?
Oils:
Summary: US soybean closed lower overnight after a report that US private exporters had sell 1.13 Man tonne of soybean to China, which is lower than the rumor of some 5.0-8.0 Man tonnes and also far from eating into their huge inventories, and oils on the Dalian Commodity Exchange extend their losses. In spots market, soybean oil steps down, while palm oil broadly stays stable, both trading low. Brazilian soybean is about to be harvested and marketed and domestic market is still digesting the negative impact from US soybean imports. Therefore, oil market continues to step down. But the stockpiles in the run up to the double holidays have got started, creating a decent demand at lows. In addition, oil mills are propping up the price on account of severe crush margin losses on the soybean side; hence, there is limited space for price declines. Overall, short-term oil spots will continue to follow its futures to go weak, and buyers can wait to replenish on the dips after steady falls.
Soybean oil: GB Grade I soybean oil is mainly priced at 5,000-5,150 yuan/tonne in domestic coastal areas, down by 10-30 yuan/tonne. (Tianjin 5,060-5,070, Rizhao 5,130, Zhangjiagang 5,150, and Guangzhou 5,000).
Palm oil: 24-degree palm oil is mainly priced at 4,090-4,200 yuan/tonne in coastal areas. (Tianjin 4,190-4,200; Rizhao not offered; Zhangjiagang 4,170, stable; Guangzhou 4,090 and Xiamen not offered).
Imported rapeseed oil: The price for imported rapeseed oil steps down, of which it is 6,200-6,450 yuan/tonne in coastal areas, down by 30-50 yuan/tonne. (Fujian not offered;Guangdong 6,310, down 40; Guangxi 6,250, down 50). While South American soybean will see a new record harvest with Brazilian soybean probably being harvested from this weekend, domestic soybean oil and rapeseed oil are still burdened with heavy pressure in stock；hence, rapeseed oil market is weighed on by bearish fundamentals. However, the stockpile in the run up to the double holidays have gradually got started. Besides, Canadian exporters are worried about being the gun target as the relationship between China and Canada has been strained by the Huawei arrest. This is now partial to domestic market now. Generally, rapeseed oil price will see limited declines, and will likely follow its futures to fluctuate narrowly to adjust. Buyers are suggested to wait on the sidelines.
Cottonseed oil: The bearish impact from US soybean imports still keeps simmering. In addition, bulk oil is still in oversupply. Therefore, soybean oil spots decline by 10-30 yuan/tonne, and cottonseed oil steps down by 50 yuan/tonne amid its poor trading volume as it blend amount is limited. But the price decline is restricted ?as oil mills are propping up the price on account of small output and low price, as well as the start of stockpiles in the run up the festivals. Before the release of any positive information, short-term cottonseed oil will fluctuate to go weak, so buyers can just take hand-to-mouth buying.
(USD $1=CNY 6.89)
