Today (Jan. 22nd), 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 is unchanged at 4,000 yuan/tonne, and non-GM Russian soybean is at 3,200 yuan/tonne and the GM is not offered. Global soybean has still come under pressure in supply. What’s more, domestic soybean market is still damped by sluggish shipments on the distribution market. Overall, imported soybean price will likely stay stable with slight declines in distribution market recently.
Cottonseed: The cottonseed prices in China today partially continue to rise 0.01-0.02 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 expensive freight. However, the cottonseed market is limited by decreased demand for oil mills are cautious in purchasing and inactive in powering on their machines amid serious losses in crushing. For the prices of products in downstream is more likely to rise than fall, short-term cottonseed is likely to stay stable with some rises. Oil mills may make small replenishment upon low prices if out of stock.
Oils:
Summary: On the Dalian Commodity Exchange, soybean oil extends its gains yet with narrower rises practically, and palm oil runs below previous session close. And in the spot market, soybean oil broadly stops increasing to steady with some fluctuations, and palm oil mostly decline in light trading. Stockpiles for the festival is still underway, with a foreign-owned factory buying up soybean oil in East China, so that soybean oil inventories have posted sharp drops by 5% weekly to 1.40 Mln tonnes. In the meantime, traders continue to taking the arbitrage of buying oils and selling meals in that meal prices remain low amid the African swine fever, for which live hog amount is predicted to fall by over 20% after the Spring Festival. Oil futures are thus shored up to stay firm. In addition, oil mills are propping up prices on account of possible tensions in soybean supply from March to the first half of April and tardy customs clearance of several cargoes of Canadian rapeseed amid strained relationship between China and Canada. In the short term, oil market is forecast to consolidate in fluctuations, and buyers can wait for steady falls to replenish properly on the dips.
Soybean oil: GB Grade I soybean oil is priced at 5,560-5,700 yuan/tonne in domestic coastal areas, fluctuating by 10-20 yuan/tonne partially. (Tianjin 5,610-5,620, Rizhao 5,650, Zhangjiagang 5,700, and Guangzhou 5,560-5,580).
Palm oil: 24-degree palm oil is mainly priced at 4,560-4,670 yuan/tonne in coastal areas, down by 10-20 yuan/tonne. (Tianjin 4,630, up 10; Rizhao 4,670, down 10; Zhangjiagang 4,640, down 20; Guangzhou 4,560, up 20; and Xiamen not offered).
Imported rapeseed oil: The price for imported rapeseed oil goes up today, of which it is 6,370-6,580 yuan/tonne in coastal areas, up by 20-30 yuan/tonne. (Fujian not offered; Guangdong not offered; and Guangxi 6,450, up 50). Operation rate will continue dropping in the next two weeks as eight cargoes of rapeseed still wait in line for commodity inspections amid tensions between China and Canada. In addition, inventories of soybean oil and rapeseed oil have been dwindling for the ongoing stockpiles. Besides, traders are active in the arbitrage of buying oils and selling meals. Rapeseed oil market thus gets a boost. But global soybean supply is under pressure, and rapeseed oil market will fall bearish once any deal is reached as scheduled in trade talks later this month. Buyers are suggested not to force up the price excessively.
Cottonseed oil: The upward movement of oils on DCE today is slow while soybean oil spots move 10-20 yuan/tonne. And cottonseed oil prices are stable with a rise of 50-80 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, there is no obvious trading volume of cottonseed oil, which is blending oils. So the upward potential for cottonseed oil is curbed, and its prices in the short run is likely to go strong along with bulk oils.
(USD $1=CNY 6.80)
