Today (Jan. 16th), the market for oilseeds and oils in China is shown as follows:
Oilseeds:
Imported soybean: Imported soybean price keeps steady with some declines today, among which non-GM Canadian soybean is not offered for out of stock and the GM old soybean is priced lower by 30 yuan to 4,000 yuan/tonne, and non-GM Russian soybean goes down by 20 yuan to 3,200 yuan/tonne and the GM is not offered. Soybean price is weighed down by active technical selling and concerns over slowing demand in China. 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 continued its losses in overnight trading upon a report that the U.S. trade representative said that no progress was made on structural issues during trade talks with China. Today, oil futures go volatile at a narrow range on the Dalian Commodity Exchange, and soybean oil and palm oil spots both fluctuate steadily in light trade. While operation rate has been dropped drastically for swelling soybean meal stocks, soybean oil inventory has been consuming by improved demand with the packing oil stockpiling underway. And factories has taken this opportunity to raise the basis level to consolidate the price. Therefore, short-term oil market has been soothed to narrow down its downward space and may go strong in fluctuation before the completion of the stockpiling before the Spring Festival. Buyers has better not force up the price, but to make proper replenishment upon steady falls.
Soybean oil: GB Grade I soybean oil is priced at 5,420-5,600 yuan/tonne in domestic coastal areas, with a partial decline of 10 yuan/tonne and a partial rise of 10-20 yuan/tonne. (Tianjin 5,420-5,430, 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, up by 20 yuan/tonne partially. (Tianjin 4,530-4,540, up 20; Rizhao 4,540, unchanged; Zhangjiagang 4,540, unchanged; Guangzhou 4,470, unchanged; and Xiamen not offered).
Imported rapeseed oil: The price for imported rapeseed oil goes up today, of which it is 6220-6420 yuan/tonne in coastal areas, up 30-50 yuan/tonne. (Fujian not offered; Guangdong not offered; and Guangxi 6,350, up 50 ). Inventories of soybean oil and rapeseed oil both decline for ongoing stockpiles before the Spring Festival. Moreover, several oil mills are not allowed to process their Canadian rapeseed amid tensions between China and Canada. Therefore, rapeseed oil market is boosted by continued drops in rapeseed crush this week. But the price jump is restricted by heavy pressure in global soybean supply and higher-level trade talks between China and the US. Buyers are suggested not to force up the price too high.
Cottonseed oil: Oils on DCE today fluctuate narrowly while soybean oil spots move 10-40 yuan/tonne. And some cottonseed oil prices go up 100 yuan/tonne due to oil mills' mindset to hold onto goods as the stockpiling before holiday is still underway, and prices of cottonseed oil hit a low of recent years with limited output. However, China's oils market is negative for there will be a higher-level US-China negotiation at the end of this month. Moreover, cottonseed oil turnover is not much. So its upward potential is curbed, and it will fluctuate strongly in narrow range through the end of the stockpiling before holiday.
(USD $1=CNY 6.77)
