Today (Dec. 19th), the market for oilseeds and oils in China is shown as follows:
Oilseeds:
Imported soybean: Imported soybean price stays stable 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 is unchanged at 3,300 yuan/tonne and the GM is not offered. According to a trader, state-owned enterprises have ordered another 15 cargoes of US soybeans (i.e. 900,000 tonnes) for shipment from January to March, which is about $300?million. A spokesman from the United States soybean export council has confirmed this news, which is first conveyed by well-informed sources in China, but the specific amount remains unclear. As market participants are in strong wait-and-see mood, imported soybean market is now curbed by slow shipments in distribution markets. Generally speaking, imported soybean price will likely go weak with fluctuations in distribution markets recently.
Cottonseed: Cottonseed price drops by another 0.02 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 extended its gains last night, for China had bought another 15 cargoes of 900,000 tonnes of soybeans for shipment from January to March. And oils on the Dalian Commodity Exchange (DCE) post rebounds for a second straight day due to the following factors: there are decent demands at low prices with the start of packing oil stockpiles in the run up to double festivals; and soybean oil stock has decreased to 1.69 Mln tonnes after a fourth-consecutive-week drop in operation rate. On spot markets, domestic soybean oil and palm oil go upward on the back of futures to attract some purchases at low prices. But there will be limited room for rebounds amid the upcoming bumper harvests of Brazilian soybeans and an oversupply pattern of domestic oils. On the whole, short-term oil market will likely follow its futures to fluctuate frequently, and buyers are suggested to replenish appropriately upon low prices, but not to force up the price excessively.
Soybean oil: GB Grade I soybean oil is mainly priced at 5,030-5,200 yuan/tonne in domestic coastal areas, up by 10-40 yuan/tonne. (Tianjin 5,060-5,070, Rizhao 5,150, Zhangjiagang 5,200, and Guangzhou 5,030-5,050).
Palm oil: 24-degree palm oil is mainly priced at 4,170-4,300 yuan/tonne in coastal areas, up 20-40 yuan/tonne. (Tianjin 4,230-4,240, up 20; Rizhao not offered; Zhangjiagang 4,300, up 40; Guangzhou 4,170-4,190, up 40; and Xiamen not offered).
Imported rapeseed oil: The price for imported rapeseed oil stays stable to rise today, of which it is 6210-6490 yuan/tonne in coastal areas, up 20-30 yuan/tonne. (Fujian not offered; Guangdong 6,300, up 10; Guangxi 6,250, up 20). Rapeseed oil price is propped up by the pickups in trading volume in recent two days after the start of small packing-oil stockpiles before double festivals, in addition to the falling stockpiles of domestic soybean oil and rapeseed oil last week. But there is limited room for price rises amid the upcoming bumper harvests of Brazilian soybeans and the ongoing oversupply pattern of domestic oils. Moreover, the United States and China have planned to carry out face-to-face trade talks in January since current talks have been going on well. On the whole, short-term rapeseed oil may follow its futures to post slight fluctuations frequently, and buyers are suggested to make small replenishment upon low prices and be cautious in chasing up the price.
Cottonseed oil: US soybean continued to rebound overnight, and oils on the DCE also extend their rebounds today. Soybean oil spots rebound by 10-40 yuan/tonne, and cottonseed oil is priced steadily for its small output and low prices, as well as the start of packing-oil stockpiles. 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 6.90)
