Today (Jan. 23rd), 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. US soybean futures fell on an uncertain outlook of trade talks between China and the United States. Meanwhile, global soybean supply is relatively loose at present, and 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: Oils on DCE and soybean meals stop rising and fluctuate. 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. Its prices today mostly stop rising and become steady. However, some prices catch up and China's cottonseed market is supported due to 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. For the prices of products in downstream is more likely to rise than fall, short-term cottonseed is likely to strongly fluctuate. Oil mills may make small replenishment upon low prices if out of stock.
Oils:
Summary: US soybean futures fell on Tuesday on a report by the Financial Times that the Trump administration had canceled trade talks, which was later denied by the White House. On the Dalian Commodity Exchange today, soybean oil sheds its gains to inch lower and palm oil edges up. And in the spot market, soybean oil mostly stays stable with some fluctuations, and palm oil goes up in light trading. Stockpiles in the run up to the Spring Festival are yet to finish, whilst soybean oil inventories have slumped to 1.40 Mln tonnes. In the meantime, traders are still taking the arbitrage of buying oils and selling meals for low meal prices when hog breeding is hit hard by the contagious African swine fever. And soybean supply may get tight domestically from March to the first half of April since its arrival has declined by 21% in the first quarter against a year earlier. Besides, operation rate has touched lows in rapeseed oil mills for tardy customs clearance amid strained tensions between China and Canada. And US soybean also goes strong upon speculation about weather conditions in South America. In the short term, oil market will have little space for declines and may consolidate in fluctuation. Oil futures are going ups and downs, so buyers having made replenishment can just wait to see if there is any necessity to buy on the dips.
Soybean oil: GB Grade I soybean oil is priced at 5,590-5,700 yuan/tonne in domestic coastal areas, some up by 10-20 yuan/tonne and some down by 20 yuan/tonne. (Tianjin 5,620-5,630, Rizhao 5,650, Zhangjiagang 5,700, and Guangzhou 5,590).
Palm oil: 24-degree palm oil is mainly priced at 4570-4690 yuan/tonne in coastal areas, up by 10-20 yuan/tonne. (Tianjin 4650-4660, up 20; Rizhao 4,690, up 20; Zhangjiagang 4,650, up 10; Guangzhou 4,570, up 20; and Xiamen not offered).
Imported rapeseed oil: The price for imported rapeseed oil trends up today, of which it is 6,390-6,590 yuan/tonne in coastal areas, up by 10-20 yuan/tonne. (Fujian not offered; Guangdong not offered; and Guangxi 6,470, up 20). Relationship between China and the US has been more uncertain upon US seeking extradition of Huawei Meng Wanzhou and its rejection a trade planning meeting with Beijing this week. Moreover, 8 vessels loaded with rapeseed are still not allowed to be processed amid tensions between China and Canada, so that several oil mills have already halt in coastal areas. Rapeseed oil has thus posted an output reduction. While on the other side, traders are active in taking the arbitrage of buying oils and selling meals for a worse-than-expected impact on hog breeding from the African swine fever. Hence, rapeseed oil market has been shored up, but it has fallen bearish upon heavy pressure in global soybean supply. Buyers has better not chase up the price excessively.
Cottonseed oil: Today soybean oil spots partially go up 10-20 yuan/tonne. And cottonseed oil prices are a little bit high due to oil mills' mindset to hold onto goods, especially for oil mills in Xinjiang province who stop trading in consideration of low prices, 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 cottonseed oil may go strong during the period before holiday.
(USD $1=CNY 6.80)
