Today (Dec. 25th), 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 0.01 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.
Oils:
Summary: Soybean stateside extended its downside overnight, and oils on the Dalian Commodity Exchange (DCE) recede mildly. In the spot markets, soybean oil and palm oil have presented some prices declines in light trading. The commodity goods market is buffeted by the slump in US stock market and the crash of 6.7% in crude oil futures. Moreover, soybean crush have risen back to above 1.70 Mln tonnes after four-consecutive-week digestion, and will likely continue rallying in the next two weeks. Therefore, spots and futures markets both extend their losses at home and abroad. Nonetheless, soybean oil stock has taken on a drop by 3% month-on-month to 1.64 Mln tonnes due to stockpiles before the festival. In addition, meal market has stepped back to the bearish stance since China has announced the elimination of tariffs on mixed meal imports. This has to some extent propped up the oil moves. In the short-term, oil market will go weak in fluctuation on the back of its futures, and buyers can wait for steady declines to buy on the dips appropriately.
Soybean oil: GB Grade I soybean oil is mainly priced at 5,090-5,250 yuan/tonne in domestic coastal areas, down by 10-50 yuan/tonne partially. (Tianjin 5,080-5,090, Rizhao 5,130, Zhangjiagang 5,250, and Guangzhou 5,090-5,100)
Palm oil: 24-degree palm oil is mainly priced at 4,170-4,300 yuan/tonne in coastal areas, down 10-60 yuan/tonne. (Tianjin 4,180-4,190, down 60; Rizhao not offered; Zhangjiagang 4,300, down 60; Guangzhou 4,170, down 10; and Xiamen not offered).
Imported rapeseed oil: The price for imported rapeseed oil steps down, of which it is 6,150-6,350 yuan/tonne in coastal areas, down by 30-50 yuan/tonne. (Fujian not offered; Guangdong 6,190, down 30; and Guangxi 6,250, stable). While stocks for rapeseed oil and soybean oil both remain at high levels nationwide, their constantly enlarged price spread has kept buyers outside the rapeseed oil market. Moreover, planters have got down to their soybean fields in Brazil and will likely ship some 2.0 Mln tonnes in January. On the other side, China will embark on its third round purchase of US soybean in the next few days, and soybean crush may exceed 1.75 Mln tonnes in the coming two weeks amid operation pickups in oil mills. And this will be a restriction to the rapeseed oil market. Overall, short-term rapeseed oil will go downward in fluctuation, and buyers can wait for steady declines to buy on the dips appropriately.
Cottonseed oil: US soybean continued its losses overnight, and soybean oil also fluctuates to post slight declines on the DCE today. In the spot market, soybean oil goes down by 10-50 yuan/tonne, and cottonseed oil keeps steady today in that oil mills tend to prop up the price on account of small output and low prices, in addition to the start of packing oil stockpiles. But the overall market is still restricted by its limited blend demand amid the ongoing supply pressure from bulk oils. Overall, short-term cottonseed market will likely maintain its weak trend in fluctuation, and buyers can just stay on the sidelines.
(USD $1=CNY 6.88)
