Today (Dec. 28th), the market for oilseeds and oils in China is shown as follows:
Oilseeds:
Imported soybean: Imported soybean price steadily slips 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 goes down by 30 yuan to 3,270 yuan/tonne and the GM is not offered. US soybeans have been weighed 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 0.01-0.04 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 soybean saw another downward slide last night, and oils on the Dalian Commodity Exchange also trade fractionally lower for a report that China and the US have made plans for face-to-face consultations over trade in January. In the spot market, soybean oil posts a partial loss, except in Guangdong, where the market has bucked the trend; and palm oil mostly keeps steady to clinch few deals, in spite of some purchases at lows. Brazil will have produced?record amounts?of?soybeans and will have them go marketing soon. Besides, operation rate have also picked up in domestic oil mills. Therefore, oil market have been under pressure from its bearish fundamentals. But soybean oil will see a declining inventory since oil mills have sped up their shipment with the start of packing oil stockpiles in the run up to the double festivals. Therefore, oil market will have little downward space, and will probably post narrow fluctuations on the back of futures. Buyers can wait for steady declines to make proper replenishment.
Soybean oil: GB Grade I soybean oil is mainly priced at 5,060-5,200 yuan/tonne in domestic coastal areas, some down by 10-30 yuan/tonne and some up by 10-50 yuan/tonne. (Tianjin 5,060-5,070, Rizhao 5,150, Zhangjiagang 5,200, and Guangzhou 5,100).
Palm oil: 24-degree palm oil is mainly priced at 4,200-4,300 yuan/tonne in coastal areas. (Tianjin 4,220-4,230, unchanged; Rizhao not offered; Zhangjiagang 4,300, unchanged; Guangzhou 4,200-4.230; and Xiamen not offered).
Imported rapeseed oil: The price remains basically stable today, of which it is 6,080-6,320 yuan/tonne in coastal areas. (Fujian not offerd; Guangdong 6,140, stable; Guangxi 6,180, stable). Currently, domestic oil has been in abundant supply, for soybean oil and rapeseed oil have both stayed stubbornly high. In the meantime, rapeseed oil has lost its price advantage due to its higher price than soybean oil by 1,000 yuan/tonne. Besides, the proportion of rapeseed oil added into the blend oil has declined fractionally. Hence, rapeseed oil demand is crippled. What’s more, the bumper Brazilian soybeans are being cutting now, and domestic operation rate for rapeseed crush has stayed at a very high level amid its sufficient supply. Overall, short-term rapeseed oil market will follow the futures to edge down with some fluctuations, and buyers can briefly take hand-to-mouth buying.
Cottonseed oil: Oil mills take a firm stand in propping up the price on account of the small output and low price of cottonseed oil, the start of packing-oil stockpiles before the festivals, as well as the weak trend of cottonseed meal. But oils have fallen on the DCE today. In the spot market, soybean oil spots also slip by 10-30 yuan/tonne under the existing stock pressure of bulk oils, and cottonseed oil is still trapped in slow shipment due to its limited blend amount. By the way, China and the US have made plans for trade talks in the week of January 7th. In the short term, cottonseed oil will likely remain stable to inch lower with fluctuations, and buyers can briefly take hand-to-mouth buying.
(USD $1=CNY 6.86)
