Today (Feb. 19th), 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 3,980 yuan/tonne, and non-GM Russian soybean is at 3,200 yuan/tonne and the GM is not offered. Soybean market has been waiting on the seventh round of economic and trade negotiations at high level between China and the United States, which will proceed in Washington this week. China will likely purchase more US soybean if talks go along well, so that domestic supply will then increase. Meanwhile, domestic distribution market for imported soybean remains tepid as holders are bearish to later market, so that domestic imported soybean market has fallen negative. In general, imported soybean price will likely stay stable with narrow adjustments in distribution market recently.
Cottonseed: Today cottonseed prices are stable.The trading is not active for the losses of crushing, the low demand owing to the remaining stock before holiday, as well as that most oil mills haven't resumed the purchase. 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. The cottonseed in the short run is likely to stay stable with move in narrow range. Buyers are suggested to take a hand-to-mouth buying strategy.
Oils:
Summary: US market was closed on Monday, and oil futures continue to edge higher on the Dalian Commodity Exchange today. In the physicals, soybean oil and palm oil both go up broadly, but the trading volume is small as buyers remain cautious. Meal prices have been dragged down by the African swine fever, whilst soybean oil inventory has declined to 1.31 Mln tonnes for sharp drops in operation rate during the Spring Festival. Meanwhile, soybean arrivals have been few in recent two months. Oil mills are propping up prices with low demand after the festival side by side, so domestic oil market will probably maintain its strong impetus in fluctuation in the near term. Chinese Vice Premier Liu He will visit the United States for the seventh round of trade talks on 21st and 22nd this month, which will be the final meeting before the deadline of March 2nd, and participants can pay attention to the outcome.
Soybean oil: GB Grade I soybean oil is priced at 5,690-5,800 yuan/tonne in domestic coastal areas, mostly up by 30-50 yuan/tonne. (Tianjin 5,740-5,750, Rizhao 5,740, Zhangjiagang 5,800, and Guangzhou 5,690-5,700).
Palm oil: 24-degree palm oil is mainly priced at 4,710-4,820 yuan/tonne in coastal areas, up by 30-80 yuan/tonne. (Tianjin 4,810-4,820, up 40; Rizhao 4,800, up 30; Zhangjiagang 4,800, up 80; Guangzhou 4,710-4,730, up 50; and Xiamen not offered).
Imported rapeseed oil: The price for imported rapeseed oil steps up today, of which it is 6,550-6,730 yuan/tonne in coastal areas, up by 50-80 yuan/tonne. (Fujian not offered; Guangdong 6,580; and Guangxi 6,590, up 70). The trading volume turns light as buyers remain cautious in chasing up the price. But inventories of soybean oil and rapeseed oil have both dropped, and traders are taking the arbitrage of buying oils and selling meal since the African swine fever has had a worse-than-expected impact on hog feeding. Therefore, rapeseed oil market is buoyed. However, oils have entered into a slack season, while oil mills are stimulated to buy another 6 cargoes of rapeseed upon its satisfactory margins. This will downsize the price growth of rapeseed oil, but it will still post fluctuations to consolidate amid the aforementioned arbitrage, and buyers are suggested not to chase up the price higher.
Cottonseed oil: Today cottonseed oil prices stay stagnant and stable for the time being due to buyers' cautiousness about high bids and stagnant turnover amid the limited blending volume of cottonseed oil and the off season after holiday. However, today the arbitrage of buying oils and selling meals oils push oils on DCE further up with spots of soybean oil and palm oil mostly rising 30-80 yuan/tonne. Moreover, the operation rate and output in cottonseed oil mills is low, and mills are waiting for higher offers. So the prices in the shorter term are likely to stay stable with strong fluctuation. Buyers may make small replenishment upon low prices if out of stock.
(USD $1=CNY 6.77)
