Today (Jan. 15th), 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 weighed down by active technical selling and concerns over slowing demand in China after its soybean import plunge in December. Meanwhile, domestic import soybean market is still capped by light trading volume on the distribution market. Generally speaking, imported soybean price will likely stay stable with slight declines in distribution market recently.
Cottonseed: The cottonseed market is limited by decreased demand for oil mills are cautious in purchasing and inactive in powering on their machines amid poor performance of cotton by-products. However, China's cottonseed market 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 before Spring Festival. Cottonseed prices is hard to rise or fall for present and in the short run may move in narrow range. Oil mills are suggested to take a hand-to-mouth buying strategy.
Oils:
Summary: US soybean fell overnight on active technical selling and concerns over slowing demand in China, and oil futures also reverse their gains to decline over weak crude oil. In the spot market, soybean oil and palm oil both slip in light trading. Soybean crush has declined substantially to 1.47 Mln tonnes for sustained swelling inventory of soybean meal amid feed demand woes under the African swine fever. As a result, soybean oil stock has presented a drastic drop of 5% weekly to 1.48 Mln tonnes with packing oil stockpiling underway. Amid strong willingness to support the price by oil mills, oil market will have little room for downside in the short term, and will probably consolidate in fluctuation before the completion of the Spring Festival. Participants can keep an eye on higher-level trade talks between China and the U.S. later this month, which will exert a great impact on later market.
Soybean oil: GB Grade I soybean oil is partially priced lower by 10-20 yuan/tonne to 5,430-5,600 yuan/tonne in domestic coastal areas. (Tianjin 5,430-5,440, Rizhao 5,480, Zhangjiagang 5,600, and Guangzhou 5,470-5,480).
Palm oil: 24-degree palm oil is mainly priced at 4,470-4,540 yuan/tonne in coastal areas,down by 10-20 yuan/tonne. (Tianjin 4,510-4,520, down 20; Rizhao not offered; Zhangjiagang 4,540, down 10; Guangzhou 4,470, down 20; and Xiamen not offered).
Imported rapeseed oil: The price for imported rapeseed oil holds steady to edge down today, of which it is 6,150-6,390 yuan/tonne in coastal areas, down by 10-20 yuan/tonne. (Fujian not offered; Guangdong not offered; and Guangxi 6,300, down 50). Soybean oil stock has dropped by 5% weekly to 1.48 Mln tonnes amid the stockpiling before festival and declines in operation rate for swelling soybean meal stock, and rapeseed oil stock has also decreased by 13% to 109,000 tonnes in Southern China. Besides, several oil mills are not allowed to process their Canadian rapeseed amid tensions between China and Canada. Therefore, rapeseed oil will have litlle downward space amid drops in rapeseed crush this week, and may follow its futures to fluctuate at a narrow range. Buyers can wait for steady falls to make proper replenishment.
Cottonseed oil: China's oils market is negative for there will be a higher-level US-China negotiation at the end of this month. Oils on DCE today fall back and soybean oil spots partially fall 10-20 yuan/tonne for futures on CBOT and crude oil both showed a decline. Moreover, cottonseed oil turnover is not much. So its upward potential is curbed and prices today is stable. However, it's hard for the prices to make a great decline 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.
(USD $1=CNY 6.75)
