Today (Jan. 3rd), 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 levels off at 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 continues to rise 0.02 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 it's hard to surge 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 soybeans closed with gains overnight upon the smaller-than-forecast production of Brazilian soybean amid unfavorable weather conditions. Today, oils on the Dalian Commodity Exchange (DCE) extend upward trends. On the spot market, soybean oil goes up on the back of its futures and may see a lighter trading volume after another price hikes. US soybean has posted consecutive rebounds, and palm oil has also rebounded on the Bursa Malaysia Derivatives Exchange. Meanwhile, domestic soybean oil stock has slid continuously to 1.62 Mln tonnes. Oil spots are boosted to embrace some rebounds. But the operation rate has gone up to a stubbornly high level in the recent two weeks, under which the fundamentals have been trapped in pressure. And this will be a constraint for oil market to present further rebounds. Uncertainty will still remain before the trade talk between China and the United States on the week of January 7, so buyers are suggested not to force up the price.
Soybean oil: GB Grade I soybean oil is mainly priced at 5,210-5,370 yuan/tonne in domestic coastal areas, up by 40-70 yuan/tonne. (Tianjin 5,210-5,230, Rizhao 5,250, Zhangjiagang 5,370, and Guangzhou 5,230).
Palm oil: 24-degree palm oil is mainly priced at 4,320-4,430 yuan/tonne in coastal areas, up by 20-40 yuan/tonne. (Tianjin 4,340-4,350, up 40; Rizhao 4,420-4,430, up 20; Zhangjiagang 4,430, up 30; Guangzhou 4,320-4,340, up 30; and Xiamen not offered).
Imported rapeseed oil: The price for imported rapeseed oil goes up today, of which it is 6,220-6,430 yuan/tonne in coastal areas, up by 20-30 yuan/tonne. (Fujian not offered; Guangdong 6,300, up 40; and Guangxi 6,350, up 70). Inventories of soybean oil and rapeseed oil both post declines due to the stockpile before the festivals. Two Guangdong mills have had some problem in unloading their rapeseed amid strained tensions between China and Canada so that one mill has stopped its production and the other has set limitations. In addition, India has cut its import tariffs on palm oil. Rapeseed oil market is thereby buoyed. But global soybean is pressured by its supply, and the operation rate for soybean has reach a super high level in oil mills. In addition, China and the United States will hold talks on the week of January 7 in Beijing. Therefore, there will be limited room for rapeseed mill to go upward. Overall, the market may follow the futures to fluctuate frequently, and it is not suitable to drive up the price excessively.
Cottonseed oil: Today some cottonseed oil prices rise by 80 yuan/tonne when oils on DCE continue to go up, soybean oil spots rise by 40-70 yuan/tonne, packing oil stockpiling is slowly getting underway and prices of cottonseed oil hit a low of recent years amid limited output and trading of oil mills. But its upward potential is kept in check by its limited blend amount amid the existing stock pressure of bulk oils. Short-term cottonseed oil will fluctuate at a narrow range and may rebound upon low prices. Buyers may make small replenishment upon low prices.
(USD $1=CNY 6.87)
