Today (Dec. 29th), the market for oilseeds and oils in China is shown as follows:
Oilseeds:
Imported soybean: Imported soybean price reverses its decline to steady 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 remains unchanged at 3,270 yuan/tonne and the GM is not offered. Currently, global soybean has been under pressure for its sizeable supply. Besides, China and the US have made specific arrangements for trade talks in January amid upbeat?forecasts. Therefore, market participants are still trapped in strong wait-and-see mood. As a result, imported soybean market is impeded 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 0.01-0.02 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 rebounded sharply last night. And today the Dalian Commodity Exchange has closed for the vacation, and there is almost no quotation provided in the spot market. Brazilian soybeans, which will hit a new high in production, have been cutting now, and China and the US have made specific arrangements for trade talks in January amid upbeat?forecasts. In addition, soybean crush volume has risen back to a very high level of 1.86 Mln tonnes in oil mills. From this aspect, domestic oil market has fallen negative. But there is limited downward space amid declining stock of soybean oil since oil mills have quickened to handle the shipment with the start of the stockpiles before the double festivals. Overall, short-term oil market will fluctuate narrowly following the futures. Participants can keep an eye on the progress of trade talks. After all, if trade talks go on smoothly in early January, there will be more downward risks for the oil market; but if not, it will hopefully have some space to run higher, though the space will be limited by its high stock pressure. Buyers can provisionally take hand-to-mouth buying or replenish properly on the dips if out of stock.
Soybean oil: GB Grade I soybean oil is mainly priced at 5,060-5,200 yuan/tonne in domestic coastal areas, some fluctuating by 10-30 yuan/tonne. (Tianjin 5,100, Rizhao 5,150, and Zhangjiagang and Guangzhou not offered).
Palm oil: 24-degree palm oil is not offered today in most areas, and some steadily at 4,230 yuan/tonne.
Imported rapeseed oil: Prices for imported rapeseed oil remain basically stable today, of which it is 6,080-,6320 yuan/tonne in coastal areas. (Fujian not offered; Guangdong 6,220; and Guangxi not offered). The inventory of rapeseed oil has fallen by 5% to 127,000 yuan/tonne in coastal areas, for oil mills have sped up to handle their shipment with the start of packing oil stockpiles before the double festivals. Rapeseed oil market thereby gets a boost. But Brazilian soybeans will go market soon with bumper harvests, and domestic operation rate for rapeseed crush has stayed at a very high level amid its sufficient supply. By the way, China and the US have made plans for trade talks in earlier January in Beijing. Therefore, short-term rapeseed oil will decline slightly with some fluctuations, and buyers can briefly buy on demand.
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 and the weak trend of cottonseed meal, in addition to a partial price rise of soybean oil by 20 yuan/tonne. But cottonseed oil is still trapped in slow shipment due to its limited blend amount under the existing stock pressure of bulk oils. By the way, China and the US have made plans for trade talks on 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 6.88)
