Today (Feb. 25th), 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. China and the United States have packed up their seventh round of trade talks at high levels. US President Donald Trump announced to delay a menu of additional Chinese tariffs that were scheduled to begin on March 1, and Sonny Perdue, Secretary of USDA, also tweeted that China has showed its good faith with a commitment to buy additional 10 million tonnes of US soybeans and it means that there will be more good news. In addition, soybeans are now also being harvesting in Brazil. However, 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 with a rise of 0.04 yuan/kg for some places, owing to the cotton ginning mills' mindset to hold onto goods for higher prices as the cottonseed prices are at a low level among these years and the supplies are less and less. But the price adjustment is limited as the trade is still not active yet and the purchase is cautious given that the cottonseed crush is under great loss and there has been some stock ahead of holiday in some cottonseed oil mills. In the near term cottonseed is likely to stay stable with fluctuations, and buyers are suggested to maintain wait-and-see attitudes for present.
Oils:
Summary: US soybean edged down last Friday, while soybean futures extend gains after higher opens on Globex electronic trading system for trade talk progress. On the Dalian Commodity Exchange today, soybean oil also inches higher, but palm oil steps down on the back of that on the Bursa Malaysia Derivatives Exchange. And in the physicals, soybean oil and palm oil both steadily fluctuate. Meal prices remain low on lingering African swine fever, with new cases reported in Inner Mongolia and Hebei this weekend, whilst soybean oil stocks keep declining so that oil mills are propping up oil market. However, sustained appreciation of the RMB recently is favorable to reduce import cost. Besides, China and the United States have made substantial progress in their talks and both Presidents will likely meet to strike a deal in March, for which the United States has postponed its plan for tariff hikes scheduled on March 1. And Secretary of the USDA also tweeted that China would buy additional 10 million tonnes of US soybeans. In the short term, domestic oil markets will have little upward impetus and may fluctuate narrowly to consolidate, and buyers can briefly keep light stocks.
Soybean oil: GB Grade I soybean oil is priced at 5,630-5,770 yuan/tonne in domestic coastal areas, up by 10-30 yuan/tonne. (Tianjin 5,700-5,710, Rizhao 5,720, Zhangjiagang 5,770, and Guangzhou 5,630).
Palm oil: 24-degree palm oil is mainly priced at 4,580-4,720 yuan/tonne in coastal areas, fluctuating by 10-20 yuan/tonne partially. (Tianjin 4,700-4,710, unchanged; Rizhao 4,720, up 20; Zhangjiagang 4,670, up 10; Guangzhou 4,580, down 10; and Xiamen not offered).
Imported rapeseed oil: The price for imported rapeseed oil mostly remain stable today, of which it is 6,480-6,650 yuan/tonne in coastal areas. (Fujian not offered, Guangdong 6,450 and Guangxi 6,468). Rapeseed oil stocks have piled up to 548,000 tonnes with an increment of 3% last week amid its slack demand. But rapeseed crush margins remain at a high level of 200 yuan/tonne since oil mills remain cautious in cargo purchase on account of the difficulty to get the certificate for GMO rapeseed and to clear customs. Nonetheless, there is a sign of a thaw in relation between China and Canada with the substantial progress made in US-China trade talks. Overall, rapeseed oil market will have little chance for sharp rises. Instead, it will maintain its fluctuation to edge up, and buyers can just keep a light stock.
Cottonseed oil: Cottonseed oil today stays stable with some declines of 100 yuan/tonne. The market is curbed by the limited blending volume of cottonseed oil and the buyers' cautiousness about market involvement for the U.S.-China trade talks were good, and U.S. will delay tariff increases on China, and there will be a Summit for President Xi and Donald Trump in March to finalize the trade agreement. However, the arbitrage of buying oils and selling meals pushed soybean oil on DCE to rise slightly, and 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 fluctuate.
(USD $1=CNY 6.68)
