Today (Jan. 4th), the market for oilseeds and oils in China is shown as follows:
Oilseeds:
Imported soybean: Imported soybean price keeps steady to decline 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 is priced lower by 30 yuan to 3,270 yuan/tonne and the GM is not offered. Currently, soybean market is propped up by unfavorable crop weather in Brazil and hopes of another batch of US soybean import to China. But China and the US hold trade talks on January 7 in Beijing amid upbeat?forecasts. Therefore, market participants are still trapped in strong wait-and-see sentiment. 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 prices of cottonseed partially 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 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 slow delivery and weak pick-up of cotton by-products. Short-term cottonseed may fluctuate at a narrow range. Buyers can make replenishment on demand in small batches upon low price.
Oils:
Summary: US soybeans extended its gains in overnight trading. And today, oils also continue to go upward at a slower pace on the Dalian Commodity Exchange (DCE). On the spot market, oils have broadly stayed stagnant to steady. Among them, soybean oil posts a partial rise and palm oil steps down partially, both attracting few deals. US soybean is buoyed to present sustained rebounds by concerns over dry weather in Brazil and positive sentiment toward the US-China talks. Besides, palm oil has entered into the period of output reduction in Southeast Asia. Meanwhile, domestic soybean oil stock has dwindled to 1.62 Mln tonnes amid the stockpiling in the run up to the Spring Festival. Oil market is thus boosted to rebound modestly in the short term. But China's Ministry of Commerce has confirmed that China and the United States will hold trade talks on Jan 7 and 8 in Beijing. Moreover, the operation rate has risen back to a very high level in oil mills. Thus, there is limited room for price rises, and may be some risks of frequent fluctuations. Buyers are suggested not to drive up the price excessively.
Soybean oil: GB Grade I soybean oil is mainly priced at 5,220-5,380 yuan/tonne in domestic coastal areas, another rise of 20-40 yuan/tonne. (Tianjin 5,220-5,230, Rizhao 5,270, Zhangjiagang 5,380, and Guangzhou 5,240-5,250).
Palm oil: 24-degree palm oil is mainly priced at 4,320-4,450 yuan/tonne in coastal areas, down by 20-30 yuan/tonne partially. (Tianjin 4,360-4,370, down 20; Rizhao 4,430, unchanged; Zhangjiagang 4,450, unchanged; Guangzhou 4,300-4,320; and Xiamen not offered).
Imported rapeseed oil: The price for imported rapeseed oil stays stable to post some rises, of which it is 6,240-6,440 yuan/tonne in coastal areas, up 10-20 yuan/tonne. (Fujian not offered; Guangdong 6,300, stable; and Guangxi 6,350, stable). Inventories of soybean oil and rapeseed oil have both declined amid the stockpiles before the Spring Festival, of which soybean oil stock has decreased to 1.62 Mln tonnes; hence, oil market has got a boost. But the operation rate has risen back to a very high level in oil mills, and global soybean has been in huge supply. In addition, China's Ministry of Commerce has confirmed that China and the United States will hold trade talks on Jan 7 and 8 in Beijing, toward whose outcome the market has held positive sentiment. Overall, there is limited room for price rises, and may be frequent fluctuations on the back of the futures. Provisionally, it is not suitable to force up the price too hard.
Cottonseed oil: Today some cottonseed oil prices at low level go up 150 yuan/tonne when oils on DCE continue to go up, soybean oil spots partially rise by 20-40 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 6.86)
