Today (Dec. 26th), 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. The market tends to prop up the price amid concerns over supply tensions in January and February when there is fewer and fewer arrivals, in addition to a rumor today that several vessels shipped with Canadian soybeans at ports in Jiangsu, Fujian and some other provinces have got a problem in unloading. But participants are also worried about later market on account of an easing trade relationship between China and the United States. Generally speaking, imported soybean price will likely go weak with fluctuations in distribution markets recently.
Cottonseed: The price for cottonseed drops by 0.03-0.04 yuan/kg today. Cottonseed market now still gets curbed by its lessened demand since oil mills are cautious in purchasing and reluctant to power on their machines on account of sustaining poor performance of cottonseed by-products. But ginning plants are now propping up the price on account of less and less cottonseed supply and its current low prices as well as expensive freight. In the absence of any material improvement in by-product markets, short-term cottonseed may decline with narrow fluctuations.
Oils:
Summary: Oils settle briefly above Tuesday’s close after some minor losses on the Dalian Commodity Exchange (DCE). In the spot market, soybean oil and palm oil both fluctuate steadily amid unimpressive trading in spite of some purchases at low prices. Oil futures have come under pressure from a myriad of factors, ranging from sagging international crude oil prices, rallying operation rate in domestic oil mills, as well as the weakening trend of US soybeans weighed on by Brazilian soybean which is being cutting now and will see a refresh record in production. But soybean oil stock has declined to 1.64 Mln tonnes since oil mills have quickened their pace in taking delivery after the start of packing-oil stockpiles in the run up to the double festivals. Moreover, there is a rumour that several vessels shipped with Canadian soybeans at ports in Jiangsu, Fujian and some other provinces have got a problem in unloading. In this context, market participants have been more willing to prop up the price. Generally speaking, short-term oil spots will post narrow fluctuations on the back of the futures, and buyers can briefly buy on demand, or replenish properly if out of stock.
Soybean oil: GB Grade I soybean oil is mainly priced at 5,070-5,220 yuan/tonne in domestic coastal areas, fluctuating by 10-20 yuan/tonne partially. (Tianjin 5,070-5,080, Rizhao 5,160, Zhangjiagang 5,220, and Guangzhou 5,080).
Palm oil: 24-degree palm oil is mainly priced at 4,170-4,300 yuan/tonne in coastal areas, fluctuating by 10 yuan/tonne. (Tianjin 4,190-4,200, up 10; Rizhao not offered; Zhangjiagang 4,300, unchanged; Guangzhou 4,170-4,190; and Xiamen not offered).
Imported rapeseed oil: The price for imported rapeseed oil stays stable to edge down, of which it is 6110-6340 yuan/tonne in coastal areas, some down by 20-50 yuan/tonne. (Fujian not offered; Guangdong 6,170, down 20; Guangxi 6,200, down 50). While stocks for rapeseed oil and soybean oil both remain at high levels nationwide, rapeseed oil market has been hit hard by their constantly enlarged price spread. In addition, the bumper Brazilian soybean will go marketing soon, and operation rate has been picking up in domestic oil mills. In the short term, rapeseed oil will go weak in fluctuation on the back of its futures. By the way, participants can keep an eye on a rumor today that some cargoes loaded with Canadian soybeans had some problems in discharging.
Cottonseed oil: Cottonseed oil is priced steadily today, for oil mills are quite willing to prop up current low prices amid low output, in addition to the start of packing oil stockpiles and the price fluctuation of soybean oil by 10-20 yuan/tonne today. But the market still takes on poor performance in clinching new deals due to its limited blend demand amid the overall heavy stock pressure and weak trend of bulk oils. Without any bullish support, short-term cottonseed oil will likely decline steadily with small fluctuations, and buyers can just take hand-to-mouth buying.
(USD $1=CNY 6.88)
