Today (Mar. 26th), 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 4,020 yuan/tonne from yesterday, and non-GM Russian soybean is unchanged at 3,270 yuan/tonne from yesterday and the GM is not offered. Brazilian soybeans are harvesting and marketing with good progress whilst the Argentina's soybean crop harvest is expect to be bumper with new batches of soybeans appearing on the market. In global market, so the supply of soybean continues to grow and the supply for China's market is also likely to go up later, which curbs imported soybean prices in distribution market amid tepid demand. Market has held a wait-and-see attitude before the result of new round U.S.-China trade talks and imported soybean prices in distribution market is predicted to fluctuate in a limited range for the short run.
Cottonseed: Cottonseed prices today weakly fluctuate 0.01-0.04 yuan/kg. Due to poor crush margin and relatively sufficient stock, cottonseed oil mills are cautious in purchasing cottonseed amid the tepid demand of cottonseed oil and meal. However, the cottonseed decline is limited by the cotton ginning mills' mindset to hold onto goods for the low operation rates in cotton ginning mills and cottonseed shortage. 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 rebounded overnight, but oil futures inch lower in choppy trading on the Dalian Commodity Exchange today. In the physicals, soybean oil steadily fluctuates by 10-30 yuan/tonne and palm oil broadly increases by 10-20 yuan/tonne with some deals clinched at low prices, but the total trading volume remains small. Short-term US soybean may hold to a narrow range between 890 and 920 cents on bumper harvests in South America and larger-than-estimated planting acreage in the US. Despite its inventory reduction to 1.36 Mln tonnes last week, soybean oil glut extends amid slack demand. And soybean arrivals will reach 8.30 Mln tonnes in April and hit above 9.0 Mln tonnes separately in May and June, so that operation rate for soybean has reversed its declines to pick up in oil mills, sending weekly crush to above 1.70 Mln tonnes in the coming two weeks. Besides, palm oil purchase in April will also reach up to 23 cargoes. Therefore, short-term oil market is forced to extend its weak trend by unfavorable fundamentals, and buyers can take hand-to-mouth buying and participants can focus on progress in US-China trade talks.
Soybean oil: GB Grade I soybean oil is mainly priced at 5,370-5,500 yuan/tonne in domestic coastal areas, fluctuating by 10-30 yuan/tonne. (Tianjin 5,420-5,430, Rizhao 5,440, Zhangjiagang 5,500, and Guangzhou 5,370).
Palm oil: 24-degree palm oil is mainly priced at 4,340-4,480 yuan/tonne in coastal areas, up by 10-20 yuan/tonne. (Tianjin 4,470-4,480, up 20; Rizhao 4,470, up 20; Zhangjiagang 4,420; Guangzhou 4,340, up 10; and Xiamen not offered).
Imported rapeseed oil: Imported rapeseed oil is priced steadily today, of which it is 6,930-7,020 yuan/tonne in coastal areas. (Fujian and Guangdong not offered; and Guangxi 7,050, stable). Apart from inventory declines of soybean oil and rapeseed oil, rapeseed and oil imports have been subject to tensions between Beijing and Ottawas. In addition, the outlook for US-China trade talks gets more uncertain now that the US insists on leaving all additional tariffs on Chinese imports. Short-term rapeseed oil market is thus predicted to keep firm. But the market has been quiet recently due to its enlarged spread with soybean oil and palm oil. Besides, soybean arrivals will reach 8.30 Mln tonnes in April, and palm oil purchase in April has also pegged at 23 cargoes. Therefore, buyers are suggested to strengthen risk prevention amid uncertain state policies.
Cottonseed oil: Cottonseed oil today stays stable as the low operation rates and output in cottonseed oil mills. However, the market is affected as the cottonseed oil volume for blending is not much; the turnover for oils is thin; soybean oil on DCE today declines slightly with fluctuations and soybean oil and palm oil spots are stable with fluctuation of 10-30 yuan/tonne. Bulk oils is slack and the weak trend of short-term cottonseed oil is likely to remain the same. Buyers are suggested to take a hand-to-mouth buying strategy.
(USD $1=CNY 6.71)
