Today (Jan. 28th), 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 goes down by 20 yuan/tonne to 3,980 yuan/tonne, and non-GM Russian soybean is at 3,200 yuan/tonne and the GM is not offered. Soybean futures have fallen upon worse production prospect for Brazilian soybean and growing expectations for higher-level trade talks between China and the United States. However, global soybean supply is still ample at present, and domestic soybean market will be still damped by sluggish shipments on the distribution market as the year draws near. Overall, imported soybean price will likely stay stable with slight declines in distribution market recently.
Cottonseed: The cottonseed market holds steady due to the cautious purchase of oil mills for stockpiling under the conditions of the serious cottonseed crush losses as well as the decreased demand factored in the machine halt in more and more oil mills for the upcoming Spring holiday. However, China's cottonseed market is supported by the low trading of cotton ginning plants in view of less and less cottonseed supply and the prices which is at the low level of recent years. Cottonseed prices in the short run are likely to fluctuate in narrow range.
Oils:
Summary: Spots of soybean oil and palm oil post sharp hikes to see light trading after gains by US soybean last Friday and oil futures on the DCE today on concerns over production cut for Brazilian soybean and forthcoming trade talks between China and the United States. The market has turned extremely negative upon meal demand after the festival, for live hog number may slump by over 20% amid the contagious ASF. In addition, soybean oil inventory has dropped sharply to around 1.39 Mln tonnes amid the stockpiling for the festival. As such, traders are active in the arbitrage of buying oils and selling meals, so that meal futures are weak while oils post surges on the DCE today. But soybean supply may get tight as its arrival has declined by 21% in the first quarter from a year earlier. Overall, oil market will hold firm to edge up before the Spring Festival, and participants can wait for the outcome of trade talks between China and the United States.
Soybean oil: GB Grade I soybean oil is priced at 5,720-5,800 yuan/tonne in domestic coastal areas, up by 60-110 yuan/tonne. (Tianjin 5,740-5,750, Rizhao 5,770, Zhangjiagang 5,800, and Guangzhou 5,720).
Palm oil: 24-degree palm oil is mainly priced at 4,630-4,740 yuan/tonne in coastal areas, up by 10-20 yuan/tonne partially. (Tianjin 4,680-4,690, up 10; Rizhao 4,740; Zhangjiagang 4,700, up 20; Guangzhou 4,630, unchanged; and Xiamen not offered).
Imported rapeseed oil: The price for imported rapeseed oil goes up, of which it is 6,500-6,660 yuan/tonne in coastal areas, a rise of 50-80 yuan/tonne. (Fujian and Guangdong not offered, and Guangxi 6,550, up 50).?The European Union has accepted a deal that it will exempt anti-subsidy tariffs on Argentine biodiesel set at a minimum price. Besides, soybean oil price has seen deep discounts in South America. Meanwhile, domestic traders are cautious in cargo purchase amid rocky relations between China and Canada, in spite of improved margins in imported rapeseed crush. And traders are active in the arbitrage of buying oils and selling meals, which helps send rapeseed oil stocks to fall by 16% weekly to 82,000 tonnes in South China. Rapeseed oil market thus gets a boost. But rapeseed crush will rally this week as oil mills like Fuzhiyuan and Shenhen have powered on their equipment last Saturday after customs clearance of rapeseed. Moreover, stockpiles have almost completed with the Spring Festival just around the corner. The price rise may be confined by cautious sentiment among buyers, but the overall market will probably remain firm.
Cottonseed oil: Today oils on DCE open high and go high, and soybean oil spots surge 60-110 yuan/tonne. And cottonseed oil prices are a little bit high due to oil mills' mindset to hold onto goods as prices of cottonseed oil hit a low of recent years with limited output, especially for most oil mills in Xinjiang province who stop trading in consideration of low prices. 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 rise of cottonseed oil when the stockpiling ahead of the holiday is coming to an end. So cottonseed oil may still go strong ahead of the holiday.
(USD $1=CNY 6.75)
