Today (Jan. 2nd), 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 goes down by 20 yuan to 4,030 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 posts a partial rebound of 0.03 yuan/kg today, for ginning plants are now propping up the price in view of less and less cottonseed supply and its current low prices as well as traffic tensions and expensive freight. But there is limited room for surges as the market now still gets curbed by slight drops in demand when oil mills are cautious in purchasing and inactive in powering on their machines amid sustained poor performance of cotton by-products. Buyers can make replenishment on demand in small batches upon low price.
Oils:
Summary: US soybean gained another 12.5 cents over the New Year’s holidays, for there is expectation that China will make further purchase after the telephone talk between the US and Chinese presidents. Oils expand their gains after higher opens on the Dalian Commodity Exchange (DCE) after trading resumed, of which palm oil is buoyed to soar by its rebound of 16 Malaysian?Ringgit on the Bursa Malaysia Derivatives Exchange over the New Year’s holiday upon the import tariff reduction of Indian palm oil. On the spot market, both soybean oil and palm oil go up today, and the former has attracted some deals at lows while the latter finds it hard to clinch deals for those with large price rises. Soybean oil posts weaker rebound than palm oil today, for its stock decline has been slowed down by the stubbornly high operation rate in oil mills in recent two weeks. What is more concerning now is the result of trade talk between China and the United States on the week of January 7. If the talk goes well, there will be downside risks for oil market; but if not, the market will be hopefully bracing for modest rallies amid the stockpiles in the run up to the Spring Festival. There being massive uncertainties, buyers are suggested not to force up the price, and go bargain hunting for soybean oil with small rises.
Soybean oil: GB Grade I soybean oil is mainly priced at 5,110-5,250 yuan/tonne in domestic coastal areas, up by 10-60 yuan/tonne from that before the New Year’s holidays. (Tianjin 5,110-5,120, Rizhao 5,180, Zhangjiagang 5,250, and Guangzhou 5,150).
Palm oil: 24-degree palm oil is mainly priced at 4,250-4,330 yuan/tonne in coastal areas, up by 60-100 yuan/tonne. (Tianjin 4,290-4,300, up 60; Rizhao not offered; Zhangjiagang 4,400, up 100; Guangzhou 4,280, up 100; and Xiamen not offered).
Imported rapeseed oil: Prices for imported rapeseed oil edge up today, of which it is 6,140-6,400 yuan/tonne in coastal areas, up by 30-50 yuan/tonne. (Fujian not offered; Guangdong 6,260, up 40; and Guangxi 6,280). Rapeseed oil market has got a boost as its stock has decreased by 5% to 544,000 tonnes in coastal areas last week. Nevertheless, global soybean supply has come under pressure, coupled by the bumper harvests of Brazilian soybeans. And oils have been in adequate supply due to the very high operation rate in soybean oil mills. Besides, a US delegation will travel to Beijing to hold trade talks with Chinese official on the week of January 7. From this aspect, rapeseed oil market will find little upward space and may fluctuate frequently. Buyers are suggested to make replenishment on the dips and be careful in driving up the price.
Cottonseed oil: Cottonseed oil market keeps steady today, which can be contributed to its small output and low price amid the start of packing oil stockpiles, together with the rise of soybean oil spots by 10-60 yuan/tonne on the back of broad gains on the DCE. 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 6.86)
