Today (Apr. 10th), 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 3,300 yuan/tonne from yesterday and the GM is not offered. USDA projected world stocks of soybean remaining at the end of the 2018-19 marketing year at 107.36 million tonnes worldwide, up by 190,000 tonnes and raised its estimate for Brazil’s soybean crop to 117 million tonnes. The global soybean supply is ample. Besides, China will further import U.S. agriculture products according to the new agreement amid the good U.S.-China trade talk status. The supply for China's market is 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 agreements of U.S.-China trade talks and imported soybean prices in distribution market is predicted to stay steady in the short run.
Cottonseed: Cottonseed prices today are stable with some rises of 0.02 yuan/kg as the freight increase from Xinjiang to inner land and the 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 some machine halt and low operation rates are cautious and purchase upon demand. Short-term cottonseed is likely to fluctuate narrowly and buyers could make proper replenishment upon low prices.
Oils:
Summary: US soybean was choppy in a narrow range to finish unchanged as USDA in its report stirred no ripples. In China, oil futures accumulate inadequate momentum to rebound today amid huge soybean imports in the second quarter and massive palm oil purchases. In the physicals, soybean oil and palm oil broadly stay stable with some ups and downs of 10-30 yuan/tonne in lighter trading, albeit some purchases at low prices. Soybean oil inventory has declined further to 1.33 Mln tonnes as operation rate has been lower than expected due to soybean shortages. And meal prices is weak in rises amid the ongoing ASF. Hence, oil mills are propping up prices. As market is a hybrid of a?bull?and a?bear, short-term spot oil will follow its futures to post frequent fluctuations within a narrow range, and buyers can just keep light stockpiles.
Soybean oil: GB Grade I soybean oil is mainly priced at 5,400-5,520 yuan/tonne in domestic coastal areas, mixed up by 20-30 yuan/tonne and down by 10 yuan/tonne. (Tianjin 5,410-5,420, Rizhao 5,450, Zhangjiagang 5,520, and Guangzhou 5,400).
Imported rapeseed oil: Imported rapeseed oil is stable with a slight rise today, of which it settles up 30-40 yuan at 6,920-7,050 yuan/tonne in coastal areas. (Fujian and Guangdong not offered; and Guangxi 7,050, stable). USDA report failed to stir market and U.S. soybeans overnight closed flat. However, rapeseed supply may get tightened later when the rapeseed cargoes for delivery after May have all been canceled amid rocky tensions between Beijing and Ottawa; according to market sources the rapeseed oil cargo at ports in East will go through stricter clearance and even be returned, which makes rapeseed oil on Zhengzhou Commodities Exchange further rebound. Rapeseed oil will stay firm until a thaw between the two countries. But rapeseed oil market has taken on a frosty picture since the price spread between soybean oil and palm oil continue to expand and reach a record high. Rapeseed oil will take plunge on a thaw between the two countries, so buyers can just wait on the sidelines.
Palm oil: 24-degree palm oil is mainly priced at 4490-4570 yuan/tonne in coastal areas, fluctuating by 10-30 yuan/tonne. (Tianjin 4530-4540, down 10; Rizhao 4,570, up 30; Zhangjiagang 4,500, down 20; Guangzhou 4,490, unchanged; and Xiamen not offered).
Cottonseed oil: Cottonseed oil today stays stable with some declines of 200 yuan/tonne as the cottonseed oil volume for blending is not much and the trading is thin. However, the market trend is still weak when the machine halt and falling operation rates for cottonseed oil mills push the output down accordingly; today oils futures i China rebound and soybean oil and palm oil spots mostly stay stable with some fluctuation of 10-30 yuan/tonne; supply of bulk oils outstrip demand. Short-term cottonseed oil is likely to stay stable with some fluctuations. Buyers are suggested to take a hand-to-mouth buying strategy.
(USD $1=CNY 6.72)
