Today (Dec. 24th), 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. Brazilian planters have set to cut their soybean, whose production is forecast to refresh its historical record. In addition, China importers are probably still buying up US soybeans. 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 now still gets curbed since oil mills are cautious in purchasing on account of weak cottonseed by-product markets, and they also show unwillingness to power on their machines so that cottonseed demand has also reduced. But ginning plants are now propping up the price on account of less and less cottonseed suppl and its low price as well as expensive freight. Overall, short-term cottonseed may decline with narrow fluctuations, and buyers can provisionally stay on the sidelines.
Oils:
Summary: Last Friday, new progress in trade talks was achieved between China and the United States after a telephone talk at the vice-ministerial level, and a cargo of US soybean, about 69,000 tonnes, was unloaded at Qingdao port. Today, oils on the Dalian Commodity Exchange (DCE) continue to go lower, and in the spot market, soybean oil and palm oil both point to declines and trade a little. Soybean crush rose back to over 1.70 Mln tonnes in oil mills last week, and will kick higher to 1.75-1.80 Mln tonnes in the coming two weeks. In addition, China will embark on the third round of US soybean purchase in the next few days, according to the market expectation. In the meantime, planters have set to cut their soybeans in Brazil and may ship some 2.0 Mln tonnes in January. Under such circumstances, oil market gets curbed. But with the start of packing oil stockpiles before double festivals, demand at low prices has become decent so that oil mills have quickened their pace to take delivery. As a result, soybean oil stock has declined to 1.67 Mln tonnes. From this aspect, there is limited space for oil spots to go downside. In the short term, oil market will extend its weak trend, and buyers can just wait on the sidelines to replenish upon low prices after steady declines.
Soybean oil: GB Grade I soybean oil is mainly priced at 5,070-5,250 yuan/tonne in domestic coastal areas, down by 20-50 yuan/tonne partially. (Tianjin 5,070, Rizhao 5,140, Zhangjiagang 5,250, and Guangzhou 5,080-5,100).
Palm oil: 24-degree palm oil is mainly priced at 4,180-4,350 yuan/tonne in coastal areas, down 10-20 yuan/tonne partially. (Tianjin 4,250, down 10; Rizhao not offered; Zhangjiagang 4,350, unchanged; Guangzhou 4,180, down 20; and Xiamen not offered).
Imported rapeseed oil: The price for imported rapeseed oil stays table to down, of which it is 6,200-6,400 yuan/tonne in coastal areas, down by 20-30 yuan/tonne. (Fujian not offered; Guangdong 6,220, down 20; and Guangxi 6,250, stable). Rapeseed oil stock increased by 4% to 570,000 tonnes in coastal areas last week, and its demand is now crippled by its constantly widened price spread with soybean oil. Moreover, Brazilian soybean will go marketing soon after a bumper harvest. And domestic soybean crush rose back to 1.70 Mln tonnes last week, and will move higher to 1.75-1.80 Mln tonnes in the next two weeks. Overall, rapeseed oil will go weak in fluctuation in the short term, and buyers can wait to make replenish on the dips after steady price declines.
Cottonseed oil: Cottonseed oil is priced steadily today, for oil mills are propping up the price on account of small output and low price, as well as the start of packing oil stockpiles. But oils on the DCE continue to go lower upon new progress achieved after a telephone talk at the vice-ministerial level between China and the US. In the spot market, soybean oil steps down by 20-50 yuan/tonne under heavy pressure in bulk oil supply, and cottonseed oil market is still restricted by its limited blend amount.
(USD $1=CNY 6.90)
