Today (Jan. 8th), the market for oilseeds and oils in China is shown as follows:
Oilseeds:
Imported soybean: Imported soybean price keeps 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 is priced steadily at 3,270 yuan/tonne and the GM is not offered. Currently, soybean market is propped up by unfavorable crop weather in Brazil. But China officials are now meeting their US counterparts 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: Some cottonseed prices in China today rise 0.04 yuan/kg, for the low trading of cotton ginning plants in view of less and less cottonseed supply and its current low prices as well as traffic tensions and expensive freight. But the market turns negative 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. Thus some prices fall 0.01 yuan/kg and short-term cottonseed may fluctuate at a narrow range.
Oils:
Summary: US soybean extended its gains overnight amid trade talks between the U.S. and China and another US soybean purchase by China. But oils decline slightly with fluctuations in early trade on the Dalian Commodity Exchange in that domestic market is dragged down by the soothing trade conflicts, but there have been some modest callbacks in near afternoon trading upon improved fundamentals since soybean oil stock has showed a sharp drop of 4% weekly to 1.56 Mln tonnes amid declining operation rate and the stockpiling before the festival underway. And in the spot market, soybean oil rises by 10-20 yuan/tonne and palm oil by 40-80 yuan/tonne, and the trading volume remains unobserved after the price hikes as buyers await outcome of the trade talks. The market has predicted continued growth in palm oil stock in Malaysia, and forecast some positive outcome from trade talks. Domestic oil market will fall negative if any deal is reached, and buyers can briefly wait for the guidance from the negotiation result.
Soybean oil: GB Grade I soybean oil is mainly priced at 5,280-5,460 yuan/tonne in domestic coastal areas, another rise of 10-40 yuan/tonne. (Tianjin 5,280-5,290, Rizhao 5,300, Zhangjiagang 5,460, and Guangzhou 5,300-5,320).
Palm oil: 24-degree palm oil is mainly priced at 4,370-4,540 yuan/tonne in coastal areas, mostly up by 40-80 yuan/tonne. (Tianjin 4,480-4,490, up 50; Rizhao 4,530, up 80; Zhangjiagang 4,540, up 40; Guangzhou 4,370-4,390, up 40; and Xiamen not offered).
Imported rapeseed oil: The price for imported rapeseed oil holds steady with slight rises today, of which it is 6,250-6,450 yuan/tonne, some rises of 10-20 yuan/tonne. (Fujian not offered; Guangdong 6,350, stable; and Guangxi 6,350, stable). Rapeseed oil market has seized the stockpiling before the festival to edge up since its stock has fallen to 520,000 tonnes last week, in addition to the drop of soybean oil stock by 4% weekly to 1.56 Mln tonnes. But global soybean supply is still large, whilst the market bode well for the outcome from the U.S.-China trade talk, which has entered into the second day and will probably produce a deal according to the U.S. Commerce Secretary. The market will turn negative upon a deal and will find limited upward potential, and buyers can just wait on the sidelines for the guidance from the trade talk.
Cottonseed oil: Today cottonseed oil prices partially rise 50-100 yuan/tonne when oils on DCE go up with fluctuations, soybean oil spots rise 10-40 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. Short-term cottonseed oil may rebound with fluctuations due to the stockpiling before holiday. However, if some agreements in the ongoing US-China trade talks in Beijing are reached, the China's oils market will turn negative. Buyer had better make proper replenishment upon lower prices, yet not chase bids high too far.
(USD $1=CNY 6.86)
