Today (Apr. 23rd), 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 4,050 yuan/tonne from yesterday, and non-GM Russian soybean is unchanged at 3,380 yuan/tonne from yesterday and the GM is not offered. Argentina's soybeans are 34.1% harvested and the Buenos Aires Grains Exchange estimated that Argentina's soybean crop in 2018/19 will be 55 million tonnes, up 57% from 35.10 million tonnes last year. With the bumper crop harvest in South America, the global soybean supply is ample. Additionally, with clear outlook of U.S.-China trade talks, China will purchase more US soybeans. The expectation of more soybean import weighs on the imported soybeans for distribution amid its tepid demand. The fluctuation of short-term prices are likely curbed.
Cottonseed: Cottonseed prices today are mostly stable with some prices up 0.02-0.04 yuan/kg
when the cotton ginning mills are waiting for higher offers as the insufficient and tight supply for cottonseed and the strong sideways for unginned cotton prices. However, the oil mills' cautiousness about purchase limits the uptrend due to the inspection for environmental protection and the machine halt in most mills in Shandong. Short-term cottonseed is likely to move sideways and buyers could buy on a hand-to-mouth basis.
Oils:
Summary: US soybean closed down in overnight trade, and oil futures also inch lower in choppy trade on the Dalian Commodity Exchange today. In spot markets, soybean oil and palm oil broadly keep steady with some ups and downs by 10-30 yuan/tonne. Some purchases have been made at low prices, but total trading volume remains a little. Soybean oil inventories piled higher by 2% to 1.38 mln tonnes last week as soybean crush increased by 8% to 1.82 mln tonnes, which was triggered by growing soybean imports from South America due to good crush margins. And palm oil cargoes will gradually arrive at domestic ports in prime for production season in Malaysia. Oil market is thus weighed down by growing supply. But rapeseed oil, whose imports have been blocked by tensions between Beijing and Ottawa, have provided some support to soybean oil and palm oil. In the short term, spot oils will follow futures to extend choppy, range-bound trend, and buyers can keep light stockpiles.
Soybean oil: GB Grade I soybean oil is mainly priced at 5,300-5,450 yuan/tonne in domestic coastal areas. (Tianjin 5,300-5,310, Rizhao 5,360, Zhangjiagang 5,450, and Guangzhou 5,340).
Palm oil: 24-degree palm oil is mainly priced at 4,380-4,490 yuan/tonne in coastal areas. (Tianjin 4,470-4,480; Rizhao 4,490, down 10; Zhangjiagang 4,450, unchanged; Guangzhou 4,380, down 10; and Xiamen not offered).
Imported rapeseed oil: Imported rapeseed oil edge down steadily today, of which it settles down 20-30 yuan at 6,950-7,150 yuan/tonne in coastal areas. (Fujian and Guangdong not offered; and Guangxi 7,150, stable). Rapeseed oil market turns negative upon following bearish factors. Trade talks have headed for a good state between China and the United States. Soybean import is growing in the second quarter due to good crush margins from declining import cost under large discounts of South American crops. Meanwhile, palm oil import will at least average at 470,000 tonnes in April and May in prime for production season. But domestic firms have weaned themselves off rapeseed and rapeseed imports from Canada to avoid policy risks, for which there will be no rapeseed cargo after May. Short-term rapeseed oil price will stay high before a thaw between China and Canada, and buyers are suggested to keep light stockpiles.
Cottonseed oil: Cottonseed oil today stays stable with a rise of 100 yuan/tonne for some prices,
with machine halt in most mills in Shandong and low operation rates amid the inspection for environmental protection. However, cottonseed oil prices are weighed on when cottonseed oil volume for blending is not much; today oils on DCE see a slight decline with fluctuations, soybean oil and palm oil spots mostly stay stable with some fluctuations of 10-30 yuan/tonne. Short-term cottonseed oil is likely to stay stable with some fluctuations at a narrow range, and buyers are suggested to take a hand-to-mouth buying strategy.
(USD $1=CNY 6.71)
