Today (Mar. 28th), the market for oilseeds and oils in China is shown as follows:
Oilseeds:
Imported soybean: Imported soybean price stays stable with some rises today, among which non-GM Canadian soybean is not offered and the GM old soybean rises by 10 yuan/tonne from yesterday to settle at 4,030 yuan/tonne, and non-GM Russian soybean is unchanged at 3,270 yuan/tonne from yesterday and the GM is not offered. As Brazilian soybeans harvest is two thirds complete and Argentina's soybean is harvesting and appearing on the market amid good yield, the global supply of soybean continues to grow and the supply for China's market is also likely to go up later to the detriment of imported soybean prices in distribution market amid tepid demand. Market has held a wait-and-see attitude before the result of U.S.-China trade talks and imported soybean prices in distribution market is predicted to be stable or stable with fluctuations in a small range in the short run.
Cottonseed: Cottonseed prices today are stable with a decline of 0.01-0.02 yuan/kg. Due to poor crush margin and relatively sufficient stock, cottonseed oil mills are more 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 weakly and buyers are suggested to take a hand-to-mouth buying strategy.
Oils:
Summary: US soybean declined steeply overnight on uncertainty in US-China trade talks and massive global soybean supply, for soybean harvest is 68% completed in Brazil and has got underway in Argentina. But oil futures fluctuate to edge down on the Dalian Commodity Exchange today, and in the physicals, soybean oil and palm oil broadly fall by 20-50 yuan/tonne in delicate trading. Chinese buyers are scooping up on South American soybeans, sending total imports to exceed 27.0 Mln tonnes from April to June. Soybean oil inventory still stays at 1.36 Mln tonnes in spite of a small drop, whilst soybean crush will run up to 1.70 Mln tonnes in coming two weeks. Meanwhile, palm oil stockpiles in February has increased by 1.3% monthly to 3.05 Mln tonnes in Malaysia, and domestic imports of palm oil in April have totaled 23 cargoes. But the questions is that end demand for oils remains weak, so that oil market has been pressured by growing supply. Overall, short-term oil market is predicted to maintain its weak trend.
Soybean oil: GB Grade I soybean oil is mainly priced at 5,380-5,500 yuan/tonne in domestic coastal areas, down by 10-30 yuan/tonne. (Tianjin 5,420-5,430, Rizhao 5,440, Zhangjiagang 5,500, and Guangzhou 5,380-5,390).
Palm oil: 24-degree palm oil is mainly priced at 4,320-4,440 yuan/tonne in coastal areas, down by 20-50 yuan/tonne. (Tianjin 4,430-4,440, down 30; Rizhao 4400, down 50; Zhangjiagang 4,370; Guangzhou 4,320; and Xiamen not offered).
Imported rapeseed oil: Imported rapeseed oil falls back today, of which it settles down 40-60 yuan/tonne at 7,010-7,110 yuan/tonne in coastal areas. (Fujian and Guangdong not offered; adn Guangxi 7,100). Rapeseed oil market takes on a gloomy picture in which almost not a buyer will visit as its spread with soybean oil and palm oil has been enlarging to another record high. But commodity inspection and quarantine by the Customs, rather than GMO certificates, are primary obstacles on substance in rapeseed import. After all, several cargoes of rapeseed and oil are still prevented from being processed and sold, even though one month has passed. If a trade deal is reached between Beijing and Washington over their talks today and tomorrow, there may be a thaw between Beijing and Ottawas. In the short term, rapeseed oil will fluctuate to adjust at high prices, and buyers can choose to wait on the sidelines.
Cottonseed oil: Cottonseed oil today mostly stays stable with some declines of 100-200 yuan/tonne when the cottonseed oil volume for blending is not much; the turnover in oils market is thin; oils on DCE today fall back with fluctuations; soybean oil spots are stable with a decline of 10-30 yuan/tonne and palm oil spots mostly fall 20-50 yuan/tonne. However, cottonseed oil prices in most regions holds stable currently with the low operation rates and output in cottonseed oil mills. Bulk oils is slack and the weak trend of short-term cottonseed oil is likely to remain the same. Buyers are suggested to maintain wait-and-see attitudes.
(USD $1=CNY 6.74)
