Today (Mar. 7th), 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 3,970 yuan/tonne, and non-GM Russian soybean is 3,200 yuan/tonne and the GM not offered. Domestic soybean supply may multiply now that Brazilian soybean crops are coming into market. But soybean is traded light in domestic distribution market. And there is no fresh progress from trade talks, though the United States has postponed its deadline for tariff hikes to 25% from 10% on $200 billion worth of Chinese imports. Therefore, traders still tend to stay on the sidelines. Overall, distribution prices for imported soybean will mostly stay stable to adjust narrowly in the near term.
Cottonseed meal: Today some cottonseed prices see a decline of 0.01 kg/tonne. The market is curbed 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. However, the price decline is limited by the cotton ginning mills' mindset to hold onto goods for higher prices when the operation rates in cotton ginning mill is low and cottonseed supplies are insufficient. In the short run cottonseed is likely to fluctuate weakly and buyers are suggested to take a hand-to-mouth buying strategy.
Oils:
Summary: US stocks fell further amid uncertainties in US-China trade talks, and oil futures also reverse to decline on the Dalian Commodity Exchange today. In the physicals, soybean oil and palm oil both slip in light trading. Soybean oil and palm oil inventories have both grown upon sluggish demand after the festival, and Malaysian palm oil output has increased by 51% from March 1 to 5 according to data by SPPOMA; oil market thus bears pressure to fall. However, soybean meal demand is also slack amid the ASF so that more and more oil mills have to halt for swelling inventories. Besides, China’s Customs has canceled registration of rapeseed exports by Canadian agribusiness Richardson International Ltd and requested to intensify inspection on Canadian rapeseed. And rapeseed oil keeps firm on the Zhengzhou Commodity Exchange upon concerns for later rapeseed supply. These bulls have limited the space for soybean oil and palm oil to see losses, and the overall oil market still trends up in choppy trading.
Soybean oil: GB Grade I soybean oil is mainly priced at 5,650-5,800 yuan/tonne in domestic coastal areas, down by 40-70 yuan/tonne. (Tianjin 5,730-5,740, Rizhao 5,750, Zhangjiagang 5,800, and Guangzhou 5,650-5,660).
Palm oil: 24-degree palm oil is mainly priced at 4,470-4,600 yuan/tonne in coastal areas, down by 30-40 yuan/tonne. (Tianjin 4,590-4,600, down 30; Rizhao 4,600, down 40; Zhangjiagang 4,600, unchanged; Guangzhou 4,470-4,490, down 30; and Xiamen not offered).
Imported rapeseed oil: Prices for imported rapeseed oil remain basically stable with some slight rises today, of which it is 6,890-7,230 yuan/tonne in coastal areas, up by 10-20 yuan/tonne. (Fujian and Guangdong not offered; and Guangxi 6,890, stable). China’s Customs has canceled registration of rapeseed exports by Canadian agribusiness Richardson International Ltd and requested to intensify inspection on Canadian rapeseed. Most traders and oil mills have stopped their quotation with worries for later supply. And some importers have begun to ask prices of GMO rapeseed oils from Russia and EU, which are mainly pegged at CNF 887 USD/tonne for April shipment. In addition, as operation rate for rapeseed crush has stayed at a high level due to its adequate supply, rapeseed oil inventory has continued to go upward this week. And rapeseed oil demand may be cut by enlarged price spread of soybean oil vs rapeseed oil and rapeseed oil vs palm oil. Beijing may reach an agreement with Washington later this month, and there may be a thaw between China and Canada at that time, so buyers are suggested not to force prices up higher while avoiding risks.
Cottonseed oil: Cottonseed oil today stays stable and fluctuate 50 yuan/tonne at a narrow range. The market is bolstered by the low operation rates in cottonseed oil mills and small output of cottonseed oil amid the inspection for environmental protection during the two sessions. However, cottonseed oil market is negative when the cottonseed oil volume for blending is not much, and oils on DCE become decline today with the spots of soybean oil and palm oil spots falling 30-70 yuan/tonne. With the good and bad news the short-term cottonseed oil is likely to mainly fluctuate at a narrow range and buyers are suggested to take a hand-to-mouth buying strategy.
(USD $1=CNY 6.71)
