Today (Dec. 27th), 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. US soybeans have been weighing on by Brazilian soybeans, which have been cutting now and will hit a new record. Meanwhile, domestic market turns negative upon a report that a U.S. delegation would travel to Beijing to hold trade talks with Chinese officials in the week of January 7th. 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 0.04 yuan/kg today. Cottonseed market now still gets curbed by slight drops in demand since oil mills are cautious in purchasing and inactive in powering on their machines on account of the lingering weak trend of cottonseed by-products. But ginning plants are now propping up the price in view 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: US soybeans fell upon favorable crop weather in South America, but oils on the Dalian Commodity Exchange just post narrow fluctuations in the correction territory on the back of huge rebounds of US stock market and crude oil. In the spot markets, soybean oil and palm oil both stay stable with some fluctuations to clinch few deals. US soybeans have been weighing on by Brazilian soybeans, which have been cutting now and will hit a new record. Meanwhile, domestic market turns negative upon the pickups of operation rate and the report that a U.S. delegation would travel to Beijing to hold trade talks with Chinese officials in the week of January 7th. But with the start of stockpiles in the run up to the festivals, oil mills have quickened to clear their stocks, making the soybean oil stock fall to 1.64 Mln tonnes. As a result, there is limited room for oil prices to decline. In the near term, oil spots will decline slightly with narrow fluctuations following the futures, and buyers can briefly take hand-to-mouth buying.
Soybean oil: GB Grade I soybean oil is mainly priced at 5,070-5,230 yuan/tonne in domestic coastal areas, fluctuating by 10-20 yuan/tonne partially. (Tianjin 5,070-5,080, Rizhao 5,150, Zhangjiagang 5,230, and Guangzhou 5,100).
Palm oil: 24-degree palm oil is mainly priced at 4,200-4,300 yuan/tonne in coastal areas, up by 30 yuan/tonne partially. (Tianjin 4,180-4,190, unchanged; Rizhao 4,350; Zhangjiagang 4,300, unchanged; Guangzhou 4,200, up 30; and Xiamen 4,240-4,250, unchanged).
Imported rapeseed oil: The price for imported rapeseed oil stays stable to inch lower, of which it is 6,080-6,320 yuan/tonne in coastal areas, down 10-20 yuan/tonne partially. (Fujian not offered; Guangdong 6,140, down 20; and Guangxi 6,180, down 20). Rapeseed oil market is now weighed on by various factors. For one thing, Brazilian planters have set to harvest their bumper soybeans. And while domestic oil still takes on an oversupply pattern, operation rate for rapeseed crush have remained at an extremely high level due to its sufficient supply. For another, a U.S. delegation would travel to Beijing to hold trade talks with Chinese officials in the week of January 7th. But the price decline of rapeseed oil is limited by its smooth shipment with the start of packing oil stockpiles in the run up to the festivals. In the short run, rapeseed oil will follow its futures to decline slightly with some fluctuations, and buyers can wait for steady price declines to make proper replenishment.
Cottonseed oil: Soybean oil spots fluctuate by 10-20 yuan/tonne today amid the weak trend and existing stock pressure of bulk oils, and thus cottonseed oil post a partial decline of 50 yuan/tonne as there are few deals clinched under limited blend demand. But there is little downside space for cottonseed oil price since oil mills tend to prop up the price on account of its small output and low price, in addition to the start of packing oil stockpiles gradually. On the whole, 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 6.89)
