Today (Mar. 12th), 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 3,190 yuan/tonne and the GM not offered. Brazilian crop harvests have been half completed, whilst global soybean supply remains adequate; thus, domestic soybean supply will probably get increased. And domestic market has been bearish upon tepid trading in the distribution market. But White House spokesman Sarah Sanders said on Monday that no date has been set for a summit between Donald Trump and Xi Jinping and Washington and Beijing are still in negotiations. As the market still tend to wait, distribution prices for imported soybean will be little changed in the near term.
Cottonseed: Cottonseed prices today are stable with a decline of 0.02 yuan/kg. The cottonseed trade is weak and cautious for cottonseed crush suffers losses and the stocks for some cottonseed oil mills are enough for now. However, due to the cotton ginning mills' mindset to hold onto goods for higher prices amid low operation rates in cotton ginning mills and cottonseed shortage, the decline of cottonseed is limited. Short-term cottonseed is likely to fluctuate at a narrow range and buyers are suggested to take a hand-to-mouth buying strategy.
Oils:
Summary: US soybean fell for a second session overnight, and oil futures extend narrow fluctuations on the Dalian Commodity Exchange today. Oil spots remain broadly stable with some ups and downs by 10-20 yuan/tonne in delicate trading. A foreign oil mill was said to have bought Ukrainian rapeseed oil in late February and a state-owned firm imported 50,000-tonne non-GM rapeseed oil from the European Union last week on account of healthy import margins. Besides, a Jiangsu private oil mill also purchased 10,000 tonnes of Australian rapeseed, whose crush margins came alive upon recent price surges of rapeseed oil and meal. Therefore, rapeseed oil snaps its gains to slump on the Zhengzhou Commodity Exchange as some traders begin to close their position after gaining on long positions. But there are some negative factors like higher-than-expected inventories of world palm oil and sluggish demand at home. In addition, some spread traders also close their position after gaining on buying oils and buying meals for satisfactory trading of soybean meal. Oil market has thus come under pressure, but oil mills tend to prop up prices amid low operation rate. On the whole, oil spots market will be little changed with frequent fluctuations on the back of futures in the short term, and buyers can keep light stocks for the moment.
Soybean oil: GB Grade I soybean oil is mainly priced at 5640-5780 yuan/tonne in domestic coastal areas, some fluctuating by 10-20 yuan/tonne. (Tianjin 5,690-5,700, Rizhao 5,700, Zhangjiagang 5,780, and Guangzhou 5,640).
Palm oil: 24-degree palm oil is mainly priced at 4,490-4,590 yuan/tonne in coastal areas, some up by 10 yuan/tonne. (Tianjin 4,580-4,590, unchanged; Rizhao 4,590, up 10 Zhangjiagang 4,550, up 10; Guangzhou 4,490; and Xiamen not offered).
Imported rapeseed oil: Prices for imported rapeseed oil steps down today, of which it is 6,990-7,100, down by 50-70 yuan/tonne. (Fujian and Guangdong not offered; and Guangxi 6,990, down 70). On account of margin booms from rapeseed crush and rapeseed oil imports upon recent sharp rises of rapeseed oil futures, importers have sheered off confined Canadian rapeseed and rapeseed to enquire EU and Ukrainian rapeseed oil. Specifically, the import volume for non-GM rapeseed oil was around 80,000 tonnes last week, with CNF at 900 USD/tonne, an equivalent of 7,200-7,300 yuan/tonne. Besides, a Jiangsu private firm also bought a volume of 10,000 tonnes of Australian rapeseed for its rare and commendable margins, and Cofco was said to have got the initial approval for March GMO rapeseed cargoes. Rapeseed futures thus steeply slip on the Zhengzhou Commodity Exchange. Even worse, its demand now is severely crippled by its widened price spread with soybean oil and palm oil. Such an unreasonable price, coupled by speculation on strained tensions between Beijing and Ottawas, has sent rapeseed oil to post price callbacks, so buyers can stay on the sidelines briefly.
Cottonseed oil: Cottonseed oil today stays stable. For the low operation rates and output in cottonseed oil mills the cottonseed oil market is not bad. However, the price adjustment will be limited when the good soybean meal turnovers leads to the arbitrage of buying oils and selling meals; rapeseed oil lead the decline and oils on DCE fall back with fluctuations amid the emerging import profit for both the rapeseed from Australia and rapeseed oil from EU; the cottonseed oil volume for blending is not much. Short-term cottonseed oil is likely to frequently fluctuate and buyers are suggested to take a hand-to-mouth buying strategy.
(USD $1=CNY 6.71)
