Today (Feb. 21st), 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. Expectations grow that China and the United States will finalize a trade deal during their talks in Washington today and tomorrow, after which China may go back to US soybean market. Besides, Chinese importers have signed contracts with Brazil for April and May delivery. Therefore, domestic supply will get loose. But the tepid trading in the distribution market is still unfavorable to overall domestic market for imported soybean. In general, imported soybean price will likely stay stable with narrow adjustments in distribution market recently.
Cottonseed: Today cottonseed prices are stable. The oils and meal prices are weak and 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 maintain its weak fluctuation. Buyers are suggested to take wait-and-see attitudes.
Oils:
Summary: US soybean posted technical rebounds last night, but oil futures continue to decline on the Dalian Commodity Exchange today. In the spots market, soybean oil and palm oil both step down with slight trading volume. Optimism grows that China and the United States will strike a deal in their talks today and tomorrow. And port palm oil inventories have piled up to 770,000 tonnes due to weak demand after the festival. Therefore, domestic oil market is weighed down. But meal prices also remain low for the contagious ASF. Moreover, soybean oil stockpiles have fallen to around 1.30 Mln tonnes, for which oil mills are still trying to prop up the price. But there is a lack of bullish stimulation currently, and the market will even fall negative if a trade deal is reached, so buyers can briefly wait.
Soybean oil: GB Grade I soybean oil is priced at 5,600-5,730 yuan/tonne in domestic coastal areas, down by 10-40 yuan/tonne. (Tianjin 5,680-5,690, Rizhao 5,690, Zhangjiagang 5,730, and Guangzhou 5,600-5,620).
Palm oil: 24-degree palm oil is mainly priced at 4,580-4,710 yuan/tonne in coastal areas, down by 40-50 yuan/tonne. (Tianjin 4,700-4,710, down 50; Rizhao 4,700, down 40; Zhangjiagang 4,650, down 50; Guangzhou 4,580-4,600, down 40; and Xiamen not offered).
Imported rapeseed oil: The price for imported rapeseed oil steps down today, of which it is 6,450-6,630 yuan/tonne in coastal areas, down by 10-30 yuan/tonne. (Fujian not offered; Guangdong 6,450; and Guangxi 6,530, down 20). Rapeseed oil market is now dragged down by several factors. Demand for oils has entered into off-season. Importers have purchased 20,000 tonnes of rapeseed oil for its enticing profits. And the market is optimistic that China and the United States will hammer out a deal over their talks in Washington today and tomorrow. However, meal prices have been in weak territory as demand from hog feeding is hit hard by the ASF, so oil mills are quite willing to prop up oil prices. Besides, certificates for imports of Canadian rapeseed and GMO crude rapeseed oil are under strict control, with few released for May. And some foreign-owned oil mills in Fangchenggang, Guangxi, without the GMO certificates, will transfer their rapeseed to other mills in Guangdong. Overall, rapeseed oil market will have little space for callbacks in the near term, and buyers can just wait for the outcome of trade talks.
Cottonseed oil: Cottonseed oil today stays stable. US soybeans overnight rebounded slightly under the technical adjustment, while oils on DCE today continue to fall back, and soybean oil and palm oil spots decline 10-50 yuan/tonne amid stagnant turnover. As market predicts a final agreement will be reached in the new round US-China trade talks today and tomorrow and the post-holiday demand is poor, these weigh on China's soybean oil market to further fall back by 10-50 yuan/tonne. With limited blending volume of cottonseed oil, buyers maintain cautious about high bids amid stagnant turnover. However, 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 fluctuation. Buyers are suggested to maintain wait-and-see attitudes until the end of Washington US-China consultations.
(USD $1=CNY 6.71)
