Today (Dec. 21st), 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 old soybean 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. After a few batches of nearly 3.0 Mln tonnes of US soybean purchases, China is likely to buy another over 2.0 Mln tonnes before the Christmas holiday. 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: The price for cottonseed drops by 0.02 yuan/kg today. Cottonseed market is now curbed, 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: Oils on the Dalian Commodity Exchange (DCE) give up their gains to down upon expectations for higher soybean productions under improved weather conditions in South America, another loss of soybean stateside in overnight session, as well as a slump of over 4% of crude oil. On spot market, soybean oil posts some declines and palm oil slips to clinch few deals. Oil spots fall back again for swooning foreign markets and domestic supply pressure that is not receded effectively. But demand has been improved at lows by the start of packing oil stockpiles before the double festivals. Meanwhile, stock pressure will utter a sigh of relief thanks to the continued drops in operation rate. Oil price thereby will find limited downward potential. Generally speaking, short-term oil spots will extend its narrow fluctuations following futures, and buyers can just wait to buy on the cheap after steady declines.
Soybean oil: GB Grade I soybean oil is mainly priced at 5,100-5,230 yuan/tonne in domestic coastal areas, down by 10-20 yuan/tonne partially. (Tianjin 5,090-5,100, Rizhao 5,190, Zhangjiagang 5,230, and Guangzhou 5,100).
Palm oil: 24-degree palm oil is mainly priced at 4,210-4,350 yuan/tonne in coastal areas, down 10-50 yuan/tonne. (Tianjin 4,280-4,290, down 10; Rizhao not offered; Zhangjiagang 4,350, down 50; Guangzhou 4,200-4,210, down 30; and Xiamen not offered).
Imported rapeseed oil: The price for imported rapeseed oil steps down, of which it is 6,130-6,410 yuan/tonne in coastal areas, down 20-50 yuan/tonne. (Fujian not offered; Guangdong 6,230, down 50; and Guangxi 6,250, down 50). Demand for rapeseed oil is now buffeted by its widened price spread with soybean oil, which is lower by over 1,100 yuan/tonne in Guangxi. In the meantime, improved rapeseed crush margins have created an incentive to a high operation rate in oil mills so that it will take some time for the market to digest huge inventories of rapeseed oil. Besides, Brazil is to market its large-tonnage soybeans soon, and China has planned to hold trade talks face to face with the United States. Rapeseed oil market is thus cracked down. In the near term, rapeseed oil will fluctuate frequently following its futures, and buyers can wait to buy on the dips after steady declines.
Cottonseed oil: The price for cottonseed oil remains stable today, for oil mills tend to support the price for its small output and low prices, together with the slow start of packing-oil stockpiles. But oils on the DCE give up their gains to fall back today, and soybean oil spots slip by 10-20 yuan/tonne amid high supply pressure of bulk oil. And cottonseed oil market is restricted by its poor trading volume under limited blend amount. In addition, China has planned to hold face-to-face talk with the United States in January. In the short term, cottonseed oil will likely fluctuate at a narrow range, and buyers can just take hand-to-mouth buying.
(USD $1=CNY 6.89)
