Today (Apr. 24th), 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. Brazilian soybean farmers have finished harvesting 92% of the area planted with the crop compared to 88% a week earlier, up 3% year on year, according to consultancy AgRural. For Argentina's soybean harvest, it's 34.1% complete. 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 amid the tepid demand of imported soybeans for distribution. The fluctuation of short-term prices are likely curbed.
Cottonseed: Cottonseed prices today are stable when the cotton ginning mills are waiting for higher offers as the insufficient and tight supply for cottonseed. However, the oil mills' cautiousness about purchase limits the uptrend as machine halt in most mills of Shandong results in low operation rates amid the poor crush margin and the inspection for environmental protection. Given the uncertainty in the market, short-term cottonseed is likely to move sideways and buyers could buy on a hand-to-mouth basis.
Oils:
Summary: U.S. soybean fell on sales pressure caused by South American crops. Domestically, rapeseed oil is the biggest loser on the Zhengzhou Commodity Exchange today, as two cargoes of imported rapeseed oil at east China port have been allowed to process, and it will later take only about 10-15 days for those cargoes at Changjiang Estuary and other ports to wait for sample tests and unloading if acceptable. Soybean oil inventories to hit 1.38 mln tonnes, as oil mills have made good use of their capability utilization on account of large soybean shipments in May to August from South America, and the inventory may be piling up amid slow shipments due to poor demand. Meanwhile, palm oil import will be huge in recent two months in prime for production season in Malaysia. Oil market has thus been weighed down by weak fundamentals. In the short term, oil spot market will maintain its weak trend, and buyers can just wait or buy on demand.
Soybean oil: GB Grade I soybean oil is mainly priced at 5,260-5,400 yuan/tonne in domestic coastal areas, down 30-50 yuan/tonne. (Tianjin 5,260-5,270, Rizhao 5,320, Zhangjiagang 5,400, and Guangzhou 5,260-5,270).
Palm oil: 24-degree palm oil is mainly priced at 4,350-4,410 yuan/tonne in coastal areas, down 30-70 yuan/tonne. (Tianjin 4,400-4,410, down 60; Rizhao not offered; Zhangjiagang 4,380, down 70; Guangzhou 4,350, down 30; and Xiamen not offered).
Imported rapeseed oil: Imported rapeseed oil sharply declines today, of which it settles down 100-120 yuan at 6,800-7,100 yuan/tonne in coastal areas. (Fujian and Guangdong not offered; and Guangxi 7,100, down 50). U.S. soybean fell in overnight trade, and rapeseed oil posts marked losses on the Zhengzhou Commodity Exchange today, as two cargoes of imported rapeseed oil at east China port have been allowed to process and it is said to be easier to go through sampling inspections later. Moreover, rapeseed oil has been reporting very poor trading volume due to its lower price advantage than soybean oil and palm oil, especially amid the overall slack demand for oils. Soybean imports from South America will be large later 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 imports from Canada have all been canceled from next month due to strained tensions, Short-term rapeseed oil price will probably stay high before a thaw between China and Canada, and will take plunge upon a thaw. Buyers are suggested to wait and keep light stockpiles.
Cottonseed oil: Cottonseed oil today stays stable with some fluctuations of 30-50 yuan/tonne due to 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 rapeseed oil on Zhengzhou Commodities Exchange leads a slump, dragging soybean oil and palm oil spots down by 30-70 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 6.72)
