Today (May 20th), the market for oilseeds and oils in China is shown as follows:
Oilseeds:
Imported soybean: Imported soybean price is steady today, among which non-GM Canadian soybean is not offered for out of stock, and non-GM Russian soybean is unchanged at 3,450 yuan/tonne from last Friday, non-GM Kazakhstan soybean is unchanged at 4,230 yuan/tonne from last Friday. China's soybean market is favourable on traders' optimistic outlook. The supply in Tianjin port is small, while the demand is good. Besides, The US soybean import in the future is likely affected as there has been no results on U.S.-China trade talks. However, the bumper crop harvest in South America and huge global supply still curbs China's market. Short-term prices likely maintain stable with strong momentum.
Cottonseed: Cottonseed prices today partially rise 0.01-0.08 yuan/kg with the decreasing cottonseed quantity putting pressure on market supply and the optimistic outlook supporting traders' selling-loath mood. Besides, the freight from Xinjiang to China's inland rises a bit. However, the upward potential is likely curbed by low purchase activity of oil mills due to the high price of cottonseed and poor crush margin, some mills mainly using its own stock. Short-term cottonseed is likely to go strong. Buyers thereby had better make proper replenishment upon low prices rather than chase high bids too far.
Oils:
Summary: U.S. soybean fell significantly last Friday, and oil futures fluctuate to adjust on the Dalian Commodity Exchange today. Oil spots are broadly stable with soybean oil and palm oil fluctuating 10-50 yuan/tonne in light trade. Oil futures are buoyed to post gains in morning trading by concerns over U.S.-China trade frictions, growing import cost under a weaker yuan, and ongoing tensions between China and Canada. But soybean oil will continue to grow as soybean crush has increased drastically to 1.94 mln tonnes last week, and will remain at a relatively high level of 1.90 in the following two weeks. Lack of impetus for rebounds, short-term oil spots will continue its choppy and narrow range trend on the back of futures. Buyers are suggested to make appropriate replenishment on the dips, rather than chase after excessive rises.
Soybean oil: GB Grade I soybean oil is mainly priced at 5,290-5,400 yuan/tonne in domestic coastal areas, some up by 10-20 yuan/tonne and several down by 50 yuan/tonne. (Tianjin 5,290-5,300, Rizhao 5,320, Zhangjiagang 5,400 and Guangdong 5,340-5,350).
Palm oil: 24-degree palm oil is mainly priced at 4,360-4,390 yuan/tonne in coastal areas, a partial loss of 20 yuan/tonne. (Tianjin 4,380-4,390, unchanged; Rizhao 4,390, down 20; Zhangjiagang 4,360, unchanged; Guangzhou 4,360; and Xiamen not offered).
Imported rapeseed oil: Imported rapeseed oil steadily edges higher today, of which it fluctuates by 10-20 yuan/tonne to settle at 7,110-7,200 yuan/tonne in coastal areas. (Fujian 7,080, up 20; and Guangdong 7,060, and Guangxi not offered). Rapeseed posts a tight supply outlook with only two cargoes left in May and only one in June as its import is blocked by tensions between China and Canada. And oil mills are propping up prices for a lower prospect in rapeseed oil stock which has declined slightly to 440,000 tonnes in coastal areas last week. But rapeseed oil market has few buyers recently as its demand is severely influenced by its enlarging spread with soybean oil and palm oil, coupledby handsome crush margins of South American soybeans and huge import amount of palm oil min recent two months. Therefore, rapeseed oil will have limited upward potential pressured by fundamentals, and its following trend will depend on when there is a thaw between China and Canada. Overall, it will remain high before a thaw, and will take plunge on the contrary. Buyers can just wait.
Cottonseed oil: Cottonseed oil today stays stable with some strong fluctuations of 20-100 yuan/tonne when poor crush margins result in low operation rates and output and a strong cottonseed price provides support for the cost of cottonseed oil. However, the price adjustment of cottonseed oil is curbed by the limited cottonseed oil volume for blending, thin turnover of new orders, and high fundamental pressure in oils market. Short-term cottonseed oil is likely to remain stable with good momentum for growth and buyers are suggested to take a hand-to-mouth buying strategy.
(USD $1=CNY 6.91)
