Today (Jan. 10th), 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 20 yuan at 3,250 yuan/tonne and the GM is not offered. Soybean market has embraced bullish support from unfavorable crop weather in South America and the completion of the US-China trade talks, which have delivered a cautiously?upbeat sound that the two countries may be inching toward a trade deal. But domestic market is still curbed by the light trading in its distribution market. Generally speaking, imported soybean price will likely stay stable with slight declines in fluctuation in distribution markets recently.
Cottonseed: The cottonseed 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 prices partially fall 0.01 yuan/kg. However, cottonseed performance in China today is supported by 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. Cottonseed is not to fall a lot and may fluctuate at a narrow range in short term.
Oils:
Summary: US soybean edged up last night, and oils also extend gains on the Dalian Commodity Exchange today. In the spot market, soybean oil and palm oil both inch higher amid ongoing stockpiling before the Spring Festival to attract some purchase at low prices, but the total volume is smaller than yesterday. This round of trade talks between China and the United States has produced no deal, but has sent optimistic news that there will be follow-up talks between higher levels later this month. And domestic market has fallen bearish since China has made a commitment to purchase US farm commodities substantially. However, while operation rate has dropped sharply for swelling soybean meal stock amid its demand downturn under the African swine fever, soybean oil stock has been declining to less than 1.56 Mln tonnes with the stockpiling underway, especially after a strong trading volume of 55,000 tonnes yesterday. Besides, traders have been adopting the arbitrage of buying oils and selling meals. Domestic oil market is thus buoyed to go strong, so are the spot basis bids. Generally, oil market will have maintained its strong momentum by the end of the stockpiling before the festival. Buyers with adequate stock are suggested not to chase the price higher, but to make some replenishment upon callbacks.
Soybean oil: GB Grade I soybean oil is broadly priced higher by 20-50 yuan/tonne to 5,360-5,600 yuan/tonne in domestic coastal areas. (Tianjin 5,360-5,370, Rizhao 5,430, Zhangjiagang 5,600, and Guangzhou 5,550).
Palm oil: 24-degree palm oil is mainly priced at 4,550-4,600 yuan/tonne in coastal areas, some up by 20-40 yuan/tonne. (Tianjin 4,550-4,560, up 20 from yesterday afternoon; Rizhao 4,590, up 40; Zhangjiagang 4,600, up 20; Guangzhou not offered; and Xiamen not offered).
Imported rapeseed oil: The price for imported rapeseed oil remains basically stable today, of which it is 6,230-6,480 yuan/tonne in coastal areas. (Fujian not offered; Guangdong 6,360, stable; and Guangxi 6,350, stable). Several cargoes of imported rapeseed have encountered some problems in unloading amid strained relations between China and Canada. On worries of later arrivals of rapeseed, oil mills has begun to lift the price amid declining crush volume. But rapeseed oil has lost its ground due to its spread with soybean oil by 800 yuan/tonne so that it has seen a light trading volume in recent two days. Besides, China has made a commitment to purchase more agricultural products from the US after smooth trade talks. Moreover, Chinese importers have bought 20,000 tonnes of crude rapeseed oil due to its improved margins. Rapeseed oil market is thus dragged down, and may fluctuate at a narrow range on the back of its futures. Buyers can briefly wait on the sidelines.
Cottonseed oil: Today some cottonseed oil prices rise 100 yuan/tonne when oils on DCE continue to lift slightly, soybean oil spots rise 20-50 yuan/tonne, packing oil stockpiling is getting underway, and prices of cottonseed oil hit a low of recent years amid limited output and trading of oil mills. However, although after a three-day round of trade talks, there were no agreements between China and US and will be a higher-level negotiation at the end of this month, China has pledged to buy a substantial amount of agricultural goods. So the China's oils market will turn negative and the upward potential for cottonseed oil is curbed amid slow delivery. Short-term cottonseed oil will move with strong momentum in narrow range.
(USD $1=CNY 6.80)
