Today (Mar. 14th), 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. Freshly-harvested Brazilian soybean crops are coming to market. Meanwhile, Beijing and Washington are expected to hammer out a trade deal later this month after the US trade representative Robert Lighthizer said that trade talks might be in the final weeks, and Chinese importers have scooped up on US soybeans substantially in recent few days. Domestic soybean supply will likely get increased later, but the market is quiet now amid tepid trading in the distribution market. Overall, distribution prices of imported soybean will be little changed in the short term.
Cottonseed: Today cottonseed prices are stable. The cottonseed market is supported by the cotton ginning mills' mindset to hold onto goods for higher prices amid low operation rates in cotton ginning mills and cottonseed shortage. However, the cottonseed trade is thin and cautious for cottonseed crush suffers losses and the stocks in some cottonseed oil mills are still enough. So short-term cottonseed is likely to fluctuate and buyers are suggested to take a hand-to-mouth buying strategy.
Oils:
Summary: US soybean inched higher overnight, but oil futures continue the losing streak on the Dalian Commodity Exchange today as traders, in view of continuous strong trading of soybean meal spots, will close their positions after profit taking on buying oils and selling meals and some of them may totally take short positions. In the spots market, soybean oil and palm oil slip by 10-70 yuan/tonne in light trading. Due to profitable imports, Chinese buyers have in a row purchased EU GM rapeseed oil, Southeastern palm oil and South American soybean oil. In the meantime, there have been contracts for South American soybean cargoes for its handsome margins. As a result, soybean oil inventory has piled up to 1.36 Mln tonnes amid delicate demand. Therefore, short-term oil prices may follow futures to fluctuate to adjust for a lack of support, and buyers can just stay on the sidelines while closely watching US-China trade talks and China-Canada relations.
Soybean oil: GB Grade I soybean oil is mainly priced at 5,580-5,680 yuan/tonne in domestic coastal areas, down by 10-50 yuan/tonne. (Tianjin 5,580-5,590, Rizhao 5,600, Zhangjiagang 5,680, and Guangzhou 5,530).
Palm oil: 24-degree palm oil is mainly priced at 4,390-4,530 yuan/tonne in coastal areas, down by 10-70 yuan/tonne. (Tianjin 4,530, down 30; Rizhao 4,520, down 50; Zhangjiagang 4,470, down 70; Guangzhou 4,390, down 10; and Xiamen not offered).
Imported rapeseed oil: Prices for imported rapeseed oil decline today, of which it is 6,730-6,820 yuan/tonne in coastal areas, down by 80-100 yuan/tonne. (Fujian and Guangdong not offered; and Guangxi 6,730, down 100). While domestic oil supply has been adequate, soybean oil and rapeseed oil inventories also keep growing. In the meantime, Malaysian palm oil stockpiles have gone higher-than-expected, and domestic edible palm oil stocks still hover high at port. Besides, demand for rapeseed oil has been sharply crippled by its unusually widened spread with soybean oil and palm oil, especially in current slack season. But participants can pay attention to the influence from the news that it will take 15 working days to carry out inspection of Canadian crude rapeseed oil. On the whole, short-term rapeseed oil market will stay in correction territory for its excessive rises previously, so buyers can stay on the sidelines for the moment.
Cottonseed oil: Cottonseed oil today stays stable with a decline of 30-100 yuan/tonne when the cottonseed oil volume for blending is not much; the turnover of soybean meal further increases; spots of soybean oil and palm oil spots slip 10-70 yuan/tonne. However, the decline happens only in a few regions due to the low operation rates and output in cottonseed oil mills. Short-term prices are likely to fluctuate weakly and buyers can maintain wait-and-see attitudes.
(USD $1=CNY 6.71)
