Today is 03/29/2024

Daily Review on Markets for Oilseeds and Oils in China

2019-04-30 www.cofeed.com
      Today (Apr. 30th), 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 4,150 yuan/tonne from yesterday, and non-GM Russian soybean is unchanged at 3,400 yuan/tonne from yesterday and the GM is not offered. The price steadiness is due to traders' selling mood when the volume of imported and distributed soybean for food 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. Today a fresh round of face-to-face trade talks is held in Beijing, and in Washington a week later. The fluctuations of short-term prices for imported soybean in distribution market are likely to be limited before an agreement between U.S. and China.
 
      Cottonseed: Cottonseed prices today are stable, 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 fluctuate at a narrow range and buyers could buy on a hand-to-mouth basis.
 
 
      Oils: 
 
      Summary: U.S. soybean continued its losses on its adequate supply and bumper South American crops in overnight trading, and oil futures edge higher in choppy trading on the Dalian Commodity Exchange today. In spot market, soybean oil sees a partial rise of 10-20 yuan/tonne and palm oil falls by 10 yuan/tonne partially in light trading. While soybean arriving at ports will likely hit 25 mln tonnes from May to July when oil mills are scooping up on profitable South American crops; hence, oil mills will raise their utility rate in the next two weeks. Soybean oil inventories may keep increasing on current 1.382 mln tonnes, and palm oil imports also remain huge in recent two months. Pressured by bearish fundamentals, short-term oil market is predicted to extend its weak, choppy trend, so buyers can buy on immediate demand. Participants cam follow up China-US trade talks today and next week and also relationship between China and Canada as Canadian soybean and pea exports also hit obstacles. 
 
      Soybean oil: GB Grade I soybean oil is mainly priced at 5,210-5,310 yuan/tonne in domestic coastal areas, a partial rise of 10-20 yuan/tonne. (Tianjin 5,210-5,220, Rizhao 5,280, Zhangjiagang 5,310 and Guangdong 5,250).
 
      Palm oil: 24-degree palm oil is mainly priced at 4,350-4,390 yuan/tonne in coastal areas, down 10 yuan/tonne partially. (Tianjin 4,380-4,390, unchanged; Rizhao 4,390, unchanged; Zhangjiagang 4,350, down 10, and Xiamen not offered).
 
      Imported rapeseed oil: Imported rapeseed oil keeps basically steady today, of which it is 6,860-7,050 yuan/tonne in coastal areas. (Fujian and Guangdong not offered, and Guangxi 7,050, stable). Oil mills will prop up its prices before the settlement of diplomatic disputes between Beijing and Ottawa, during which rapeseed supply may get tightened as its shipments after May have all been canceled. But its trading volume continues to be gloomy due to its enlarging price spread with soybean oil and palm oil. Furthermore, soybean import is ballooning in the second quarter due to profitable South American crops and palm oil cargoes are also increasing. Overall, rapeseed oil may maintain its high prices in the short term, but will probably take plunge upon a thaw, so buyers can keep light stockpiles for the moment.
 
      Cottonseed oil: Cottonseed oil today stays stable with some declines of 50 yuan/tonne , owing to the limited cottonseed oil volume for blending and the thin trading activity. However, the market is bolstered when the inspection for environmental protection in Shandong and poor crush margin result in low operation rates and limited output; ; today oils on DCE take a slight rise with fluctuations, and soybean oil spots partially go up 10-20 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 6.74)