Today (Jan. 11th), 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 3,220 yuan/tonne and the GM is not offered. Soybean price is dragged down since Brazilian soybean may post a higher-than-forecast production and the market has been awaiting more evidence for U.S. soybean purchases by China. Meanwhile, 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 due to decreasing demand for oil mills are cautious in purchasing and inactive in powering on their machines amid poor performance of cotton by-products. 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 prices won't face a drastic decline and in the short run will move in narrow range.
Oils:
Summary: U.S. soybean dropped sharply yesterday due to a lack of demand from China and Brazil’s official estimate of 118.8 million tonnes?for its soybean production, above the forecast of 116-117 million tonnes by the market. Oils also fall back on the Dalian Commodity Exchange today, and in the spot market, soybean oil and palm oil both step down amid weaker trade. Domestic oil market turns bearish upon the decline of palm oil on the Bursa Malaysia Derivatives Exchange after a report by MPOB showed that its stock has surged to a highest level of 3.22 Mln tonnes by the end of December since 2000, and the market has also seen callbacks upon profit-taking. However, while operation rate has slid for swelling soybean meal stock, soybean oil has embraced for strong trading and faster shipment after the New Year’s holiday so that its stock has posted steep declines to below 1.56 Mln tonnes. With the stockpiling before the festival underway, short-term oil market will probably find little room for callbacks, and may rebound after callbacks. Buyers can just wait for steady falls to make appropriate replenishment.
Soybean oil: GB Grade I soybean oil is broadly priced lower by 10-50 yuan/tonne to 5,390-5,550 yuan/tonne in domestic coastal areas. (Tianjin 5,410-5,420, Rizhao 5,390, Zhangjiagang 5,550, and Guangzhou 5,470).
Palm oil: 24-degree palm oil is mainly priced at 4,480-4,550 yuan/tonne in coastal areas, mostly down by 20-60 yuan/tonne. (Tianjin 4,520-4,530, down 20 from; Rizhao 4,530, down 60; Zhangjiagang 4,550, unchanged; Guangzhou not offered; and Xiamen not offered).
Imported rapeseed oil: The price for imported rapeseed oil steps down today, of which it is 6,190-6,430 yuan/tonne in coastal areas, down by 20-30 yuan/tonne. (Fujian not offered; Guangdong not offered; and Guangxi 6,350, stable). Chinese importers have bought another 16,000 tonnes of crude rapeseed oil due to its improved margins recently. And rapeseed oil has seen light trading since it has lost its edge due to its enlarged price spread with soybean oil. Rapeseed oil market is thereby dragged down. But oil mills have encountered some problems in unloading imported rapeseed cargoes or are not allowed to process amid strained relations between China and Canada so that rapeseed crush volume has continued dropping. Hence, there is limited space for rapeseed oil to go downward. Buyers can just wait for steady falls to make proper replenishment.
Cottonseed oil: Today oils on DCE fall back, soybean oil spots decline by 10-50 yuan/tonne. 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, but China has pledged to buy a substantial amount of agricultural goods. So the China's oils market will turn negative and the delivery pace of cottonseed oil is slow with some prices falling 100 yuan/tonne. However, the prices of the low-end partially rise 100 yuan/tonne for the stockpiling before holiday is still underway, and prices of cottonseed oil hit a low of recent years amid limited output and trading of oil mills. Short-term cottonseed oil will move in narrow range and the prices of the high-end may fall back.
(USD $1=CNY 6.75)
