Today is 03/29/2024

Daily Review on Markets for Oilseeds and Oils in China

2019-04-29 www.cofeed.com
      Today (Apr. 29th), the market for oilseeds and oils in China is shown as follows:
 
      Oilseeds:

      Imported soybean: Imported soybean price rises today, among which non-GM Canadian soybean is not offered for out of stock and the GM old soybean rises by 100 yuan/tonne from yesterday to settle at 4,150 yuan/tonne, and non-GM Russian soybean rises by 20 yuan/tonne from yesterday to settle at 3,400 yuan/tonne from yesterday and the GM is not offered. The imported and distributed soybean market is good with the replenishment by end users, whose soybean stock is not much. However, with the bumper crop harvest and quick marketing pace 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. Short-term prices likely turn stable from earlier fluctuations.

      Cottonseed: Cottonseed prices today are stable with a strong fluctuation of 0.01-0.04 yuan/kg for some prices, owing to the insufficient and tight supply. However, the oil mills' cautiousness about purchase limits the uptrend as a tense situation during the inspection for environmental protection and poor crush margin result in low operation rates. 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 inched lower last Friday, and oil futures also edge down on the Dalian Commodity Exchange (DCE) today. In spot markets, soybean oil and palm oil post partial losses of 10-30 yuan/tonne in light trade. U.S. soybean is weighed down by bumper South American crops. And domestic oil mills are buying up on those profitable Latam soybeans whilst taking profits by oil and meal sales on the DCE, so that oil futures are under pressure. Moreover, soybean oil inventory may keep rising after a slight increase weekly to 1.382 mln tonnes as oil mills will raise their crush in the next two weeks. And palm oil import is also huge in recent two months. In this case, short-term oil market is predicted to extend weak fluctuations, so buyers can take a hand-to-mouth basis. Participants can watch on trade talks tomorrow and next week, which will be the final round, according to the U.S. Treasury Secretary.

      Soybean oil: GB Grade I soybean oil is mainly priced at 5,210-5,310 yuan/tonne in domestic coastal areas, a partial loss of 10-30 yuan/tonne. (Tianjin 5,210-5,220, Rizhao 5,260, and Zhangjiagang 5,310).

      Palm oil: 24-degree palm oil is mainly priced at 4,320-4,390 yuan/tonne in coastal areas, down 20 yuan/tonne partially. (Tianjin 4,380-4,390, unchanged; Rizhao not offered; Zhangjiagang 4,360, down 20, Guangzhou 4,320 and Xiamen not offered).

      Imported rapeseed oil: Imported rapeseed oil steadily inches down today, of which it is 6,860-7,050 yuan/tonne in coastal areas. (Fujian and Guangdong not offered, and Guangxi 7,050, stable). Rapeseed oil market has lost its buyers as its demand is severely cut by its large spread with soybean oil and palm oil. Moreover, domestic soybean import is ballooning in the second quarter for abundant crush margins of South American crops due to its declining costs upon premiums. And as palm oil is entering into the prime production season, domestic import may hit 530,000-540,000 tonnes in April. But there is no rapeseed import after May due to tensions between China and Canada, so short-term rapeseed oil market will not slump and will stay high instead before a thaw between these two countries, but it may take plunge upon a thaw, so buyers had better keep light stockpiles. 

      Cottonseed oil: Cottonseed oil today stays stable with a rise of 50 yuan/tonne for some prices, owing to low operation rates and output amid poor crush margin and the inspection for environmental protection. However, the upwards potential of cottonseed oil is curbed when cottonseed oil volume for blending is not much; today oils on DCE take a slight drop, and soybean oil and palm oil spots partially fall 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 6.73)