Today (Mar. 18th), the market for oilseeds and oils in China is shown as follows:
Oilseeds:
Imported soybean: Imported soybean price stays stable today, among which non-GM Canadian soybean is not offered for out of stock and the GM old soybean is unchanged at 3,960 yuan/tonne from last Friday, and non-GM Russian soybean is unchanged at 3,190 yuan/tonne from last Friday and the GM is not offered. The soybean supply in China may increase amid the China's active purchase of South America soybean and globally ample supply, and the turnover of imported soybeans for distribution in China is still tepid to the detriment of the market of imported soybeans for distribution. Moreover, traders currently hold a wait-and-see attitude amid the uncertainty of the U.S.-China trade talks. Overall, imported soybean prices in distribution market will keep steady to fluctuate at a narrow range in the near term.
Cottonseed: Today some cottonseed prices see a rise of 0.02 yuan/kg. 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. Add that the meal demand is poor with the spread of African swine fever and short-term cottonseed is likely to move sideways and buyers are suggested to take a hand-to-mouth buying strategy.
Oils:
Summary: US soybean was brought higher by technical buying, and oil futures also reverse declines to rebound fractionally on the Dalian Commodity Exchange today. In the physicals, soybean oil and palm oil follow to stay stable with some rises of 10-20 yuan/tonne to attract some purchase at low prices. Oil futures briefly reverse declines for several factors, including the arbitrage of buying oils and selling meals for lingering impacts of the ASF on soybean meal and an uncertain outlook of US-China trade talks and China-Canada relations. However, Chinese buyers have imported at least 15 cargoes of Brazilian soybeans for its good crush profit, in addition to continuous purchase of oils. And against slack demand, soybean oil inventory has increased to 1.37 Mln tonnes. Besides, import cost will be cut down as the VAT will fall by 1% from April 1st. All these have jointly restricted the rebound space. Overall, short-term oil spots will follow futures to fluctuate frequently, and will face continuous stress if there is a thaw in China-US and China- Canada relations. Buyers with adequate stocks are suggested to replenish properly on the dips, and be cautious in forcing up prices.
Soybean oil: GB Grade I soybean oil is mainly priced at 5,470-5,600 yuan/tonne in domestic coastal areas, up by 10-20 yuan/tonne. (Tianjin 5,510-5,520, Rizhao 5,510, Zhangjiagang 5,600, and Guangzhou 5,470).
Palm oil: 24-degree palm oil is mainly priced at 43,50-4,480 yuan/tonne in coastal areas, up by 10-20 yuan/tonne partially. (Tianjin 4,470-4,480, unchanged; Rizhao 4,460, up 20; Zhangjiagang 4,420, up 20; Guangzhou 4,350-4,370, up 10; and Xiamen not offered).
Imported rapeseed oil: Imported rapeseed oil rises in price today, of which it goes up by 50-80 yuan/tonne to 6,810-6,900 yuan/tonne in coastal areas. (Fujian and Guangdong not offered; and Guangxi 6,800, up 80). US soybean rose lat Friday. And rapeseed cargoes remain only two left for April shipment and zero for May amid intensive cancellation, so imported rapeseed supply will probably get tightened in May and run short in July amid rocky tensions between Beijing and Ottawa. Meanwhile, two crude rapeseed oil cargoes are still waiting to be unloaded. Therefore, rapeseed oil is buoyed to rebound sharply on the Zhengzhou Commodity Exchange today. Whilst rapeseed oil inventory has declined by 4% to 490,000 tonnes in coastal areas, rapeseed crush has hit a very low level of 40,000 tonnes for swelling rapeseed meal stockpiles and rapeseed shortage; thus, short-term rapeseed oil still keeps firm in price. But rapeseed oil market is quiet recently as its demand is severely cut by its widened spread with soybean oil and palm oil. Buyers can just take hand-to-mouth buying for the price will quickly drop for any thaw in relations between China and Canada.
Cottonseed oil: Cottonseed oil today sees a partial drop of 50 yuan/tonne as the limited cottonseed oil volume for blending and the light turnover in oils market. However, the decline is curbed when the operation rates in cottonseed oil mills are low; US soybeans last Friday lifted with technical buying up; Today oils on DCE rebound fractionally after earlier decline; soybean oil and palm oil spots revise early declines to a steady level with some rises of 10-20 yuan/tonne. But short-term cottonseed oil is likely to keep the weak trend and buyers are suggested to take a hand-to-mouth buying strategy.
(USD $1=CNY 6.72)
