Today (Dec. 17th), 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. The USTR has officially modified the time to 12:00 am ET on March 2, 2019 for raising additional tariffs on $200 Billion of Chinese imports. And if the two countries fail to reach a deal before the deadline, the tariff will be raised on time. As market participants tend to wait and see on account of the uncertainties in the US-China trade friction, imported soybean market is now cubed amid slow shipments in distribution markets. Generally speaking, imported soybean price will post narrow fluctuations in distribution markets recently, and participants can pay close attention to national policies.
Cottonseed: Cottonseed price steps down by 0.02 yuan/kg due to its reduced demand, for oil mills are reluctant to power on their machines and remain cautious in purchasing on account of ongoing poor performance of cottonseed by-products. But the price will not fall further since the volume from Xinjiang is small under expensive freight, especially when ginning plants are propping up the price. By the way, US President Donald Trump tweeted that “a big and very comprehensive deal could happen, and rather soon” between Washington and Beijing after China announced to temporarily halt additional tariff on US-made vehicles. Overall, short-term cottonseed market may go weak with narrow fluctuations, and buyers can just wait on the sidelines.
Oils:
Summary: Soybean oil extends its losses and palm oil presents narrow fluctuations on the Dalian Commodity Exchange (DCE) today, for US President Donald Trump tweeted that “a big and very comprehensive deal could happen, and rather soon” between Washington and Beijing after China announced to temporarily halt additional tariff on US-made vehicles. On spot markets, domestic soybean oil goes down while palm oil goes up partially, both trading a little. Oil market has been in downward pace due to the resumption of US soybean imports, together with the forthcoming rich harvests of Brazilian soybeans. But there is little room for further declines, for soybean oil stocks may fall further to 1.73 Mln tonnes amid continued operation rate declines in oil mills, whilst there have been some demands at low prices with the start of small packing oil stockpiles in the run up to the double holidays. Moreover, losses have occurred in soybean crushing. Generally, oil spot market may continue to run weak on the back of its futures, and buyers can wait to replenish properly on the dips after steady price declines.
Soybean oil: GB Grade I soybean oil is mainly priced at 5,000-5,130 yuan/tonne in domestic coastal areas, down by 10-30 yuan/tonne. (Tianjin 5,030-5,040, Rizhao 5,110, Zhangjiagang 5,130, and Guangzhou 5,000).
Palm oil: 24-degree palm oil is mainly priced at 4,100-4,210 yuan/tonne in coastal areas, up by 30 yuan/tonne partially. (Tianjin 4,200-4,210, unchanged; Rizhao not offered; Zhangjiagang 4,200, up 30; Guangzhou 4,100-4,120 and Xiamen not offered).
Imported rapeseed oil: The price for imported rapeseed oil drops today, of which it is 6,190-6,430 yuan/tonne in coastal areas, down by 10-20 yuan/tonne. (Fujian not offered; Guangdong 6,290, down 20; Guangxi 6,230, down 20). Rapeseed oil market now comes under pressure from a myriad of bearish fundamentals: while rapeseed oil stock has risen by 3% to 135,000 tonnes in South China last week and Brazilian soybean will post a new record in harvest soon, domestic soybean oil and palm oil also hold high inventories. But demand at low prices has turned better a little bit with the beginning of small packing oil stockpiles before the double holidays. Generally, rapeseed oil will neither find limited space for further declines nor little potential for rises, and may still follow its futures to go downside with narrow fluctuations. Buyers are suggested to stay on the sidelines.
Cottonseed oil: Oils extend their declines on the DCE, for US President Donald Trump tweeted that “a big and very comprehensive deal could happen, and rather soon” between Washington and Beijing after China announced to temporarily halt additional tariff on US-made vehicles. Soybean oil spots drop by 10-20 yuan/tonne, and cottonseed oil also goes down by 30 yuan/tonne partially due to its poor trading volume under limited blend demand. But the price decline for cottonseed oil has been limited by its own small output, especially after the start of packing oil stockpiles. With the support of any practical bullish factors, short-term cottonseed oil market may still drop with small fluctuations, and buyers can provisionally take hand-to-mouth buying.
(USD $1=CNY 6.90)
