Today (Apr. 3rd), 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 4,030 yuan/tonne from yesterday, and non-GM Russian soybean is unchanged at 3,270 yuan/tonne from yesterday and the GM is not offered. With the good situation for both the soybean sales from U.S. to China and the progress of trade talks, more U.S. soybeans are likely to be purchased later. Moreover, Brazilian soybean harvest is 75% complete, and more and more South America soybeans are marketing. Accordingly, the global supply of soybean is sufficient 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 for the new round of U.S.-China trade talks this week and imported soybean prices in distribution market is predicted to be stable in the short run.
Cottonseed: Today some cottonseed prices rebound 0.02 yuan/kg due to the two-consecutive-day rise in soybean meal price and cotton ginning mills' strong willingness for higher offers amid the low operation rates in mills and insufficient cottonseed supply. However, the cottonseed trade is still light when cottonseed oil mills with low operation rates are cautious about purchase. Short-term cottonseed is likely to fluctuate narrowly and buyers could make proper replenishment upon low prices.
Oils:
Summary: US soybean moved upward further overnight buoyed by US-China trade talks, and oil futures go higher to expand gains on the Dalian Commodity Exchange today as soybean oil inventory has dropped to 1.34 Mln tonnes amid quicker shipment in recent few days while meal prices have been stagnancy for a long time under the ASF. In the spots market, soybean oil steps up by 20-50 yuan/tonne and palm oil by 50-70 yuan/tonne, both attracting some deals at low prices. Chinese oil mills are buying Brazilian soybean for its good crush margins and have been expanding soybean crush amid its growing imports. Besides, the import of profitable palm oil is also fairly high. Trapped in a supply glut, oil market will have little impetus to rebound and may be very volatile in the short term, so buyers are are suggested not to chase after excessive price hikes.
Soybean oil: GB Grade I soybean oil is mainly priced at 5,390-5,500 yuan/tonne in domestic coastal areas, up by 20-50 yuan/tonne. (Tianjin 5,400-5,410, Rizhao 5,450, Zhangjiagang 5,500, and Guangzhou 5,390-5,400).
Palm oil: 24-degree palm oil is mainly priced at 4,410-4,480 yuan/tonne in coastal areas, up by 50-70 yuan/tonne. (Tianjin 4,470-4,480, up 70; Rizhao 4,470, up 50; Zhangjiagang 4,440, up 50; Guangzhou 4,410, up 70; and Xiamen not offered).
Imported rapeseed oil: Imported rapeseed oil rises today, of which it settles up 80-110 yuan/tonne at 6,950-7,050 yuan/tonne in coastal areas. (Fujian and Guangdong not offered; and Guangxi 7,100, up 100). China has filed a quality complaint against a third Canadian exporter of canola, and there is unsupported news that the previously inspected rapeseed oil in Eastern China is required for a second inspection; hence, rapeseed oil futures post sharp rises on the Zhengzhou Commodity Exchange today on a series of concerns. Later rapeseed supply will probably get tightened since there is no cargo after May amid tensions between Beijing and Ottawa. And nothing is sure about tensions between China and Canada before the extradition hearing against Meng Wanzhou on May 8. Thus, rapeseed oil price will keep firm in the short run. But rapeseed oil market is now very frosty in spite of its high prices as its spread with soybean oil has been enlarged to 1,600 yuan/tonne. Later trend will be probably guided by relations between Beijing and Ottawas as it may fall upon a thaw in tensions, so state policy will remain as a risk in chasing price hikes of rapeseed oil.
Cottonseed oil: Today some cottonseed oil prices rebound 50 yuan/tonne when the operation rates and output in cottonseed oil mills are low, oils on DCE are further up, and soybean oil and palm oil spots see a rise of 20-70 yuan/tonne. However, the upward potentials is curbed by the limited demand for the blending volume of cottonseed oil as well as the light turnover in oils market. With a glut of bulk oils commodity, short-term cottonseed oil is also weak in rebounding and buyers are suggested to take a hand-to-mouth buying strategy.
(USD $1=CNY 6.71)
