Today (Dec. 18th), the market for oilseeds and oils in China is shown as follows:
Oilseeds:
Imported soybean: Imported soybean price stays stable to decline today, among which non-GM Canadian soybean is not offered for out of stock and the GM is unchanged at 4,050 yuan/tonne, and non-GM Russian soybean goes down by 100 yuan/tonne to 3,300 yuan/tonne and the GM is not offered. As market participants are in strong wait-and-see mood amid upcoming bumper harvests of Brazilian soybeans and ongoing purchases for US soybeans, 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.
Cottonseed: Cottonseed price drops by another 0.02-0.05 yuan/kg, for oil mills are cautious in purchasing when there is no sign of material improvements in cottonseed by-product markets, and they also show unwillingness to power on their machines so that cottonseed demand has also reduced. But the price decline is minor due to the small volume from Xinjiang under expensive freight, especially coupled by ginning plants’ sentiment in hoarding. Overall, short-term cottonseed may decline with narrow fluctuations, and buyers can take hand-to-mouth buying.
Oils:
Summary: US soybean gained overnight upon expectations that demand from Chinese market would come roaring back, and oils on the Dalian Commodity Exchange (DCE) also post slight rebounds today after sustained declines. On spot markets, soybean oil shows some rises and palm oil remains broadly stable, both attracting some purchases at low prices yet still in modest volume. Soybean oil stock has shrunk to 1.69 Mln tonnes after a fourth-consecutive-week drop in operation rate in oil mills, whilst there have been some demand at low prices now that stockpiles in the run up to the double holidays have already got started. Moreover, oil mills are propping up the price amid losses in soybean crush. Therefore, oil spots provisionally stop declining today. However, there is limited space for rebounds as domestic oil market is trapped in an oversupply pattern especially after the restart of US soybean imports, in addition to the upcoming marketing of bumper Brazilian soybeans. In the near term, oil market will likely follow its futures to present narrow fluctuations, and buyers can take hand-to-mouth buying.
Soybean oil: GB Grade I soybean oil is mainly priced at 5,000-5,130 yuan/tonne in domestic coastal areas, some rebounding 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 4,100-4,200 yuan/tonne in coastal areas. (Tianjin 4,190-4,200, unchanged; Rizhao not offered; Zhangjiagang 4,200, unchanged; Guangzhou 4,100-4,120, unchanged; and Xiamen 4,220, unchanged).
Imported rapeseed oil: The price for imported rapeseed oil stays stable to edge up today, of which it is 6190-6430 yuan/tonne in coastal areas, up by 10-20 yuan/tonne partially. (Fujian not offered; Guangdong 6290, stable; Guangxi 6230, stable). Rapeseed oil price is buoyed to show rebounds amid rekindled demand at low prices now that stockpiles in the run up to double festivals have gradually got started, while its stock has dropped by 2% to 553,000 tonnes in coastal areas and soybean oil stock has also decreased to 1.69 Mln tonnes. But there is still limited room for rebounds since oil is still in an oversupply pattern, in addition to forthcoming sales of bumper Brazilian soybeans. Generally speaking, short-term rapeseed oil spots will fluctuate narrowly on the back of the futures, and buyers can replenish modestly upon low prices as the futures have posted small rises in afternoon trading.
Cottonseed oil: US soybean rebounded fractionally overnight, and oils on the DCE also present slight rebounds. Soybean oil spots rebound by 10-30 yuan/tonne partially, and cottonseed oil keeps steady today as its price decline is restricted by its small output, in addition to the start of stockpiles for packing oil. But its market is now restricted by poor trading volume amid limited blend amount under relatively heavy supply pressure of bulk oil. Without any support from practical bullish factors, short-term cottonseed oil market may still go weak with small fluctuations, and buyers can provisionally take hand-to-mouth buying.
(USD $1=CNY 6.89)
