Today (May 23rd), 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 yesterday, non-GM Kazakhstan soybean is unchanged at 4,250 yuan/tonne from yesterday. 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 is curbed as U.S.-China trade talks suspend. 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 are stable with a rise of 0.05-0.08 yuan/kg due to the decreasing cottonseed quantity putting pressure on market supply and the optimistic outlook supporting traders' selling-loath mood. However, the cottonseed trading is not much as oil mills are reluctant to purchase and some mills mainly use its own stock due to the high price of cottonseed and poor crush margin. 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 slightly bounced last night, but oil futures continue to fall on the arbitrage of buying meals and selling oils. In spot markets, soybean oil and palm oil slip by 10-60 yuan/tonne with fewer deals. Global soybean has an adequate supply, and the United States is considering subsidies for its soybean farmers to stimulate planting; hence, U.S. soybean will maintain weak fluctuations in short term. Meanwhile, domestic oil mills are making full use of their utilization capacity on account of adequate soybeans, and soybean oil inventory has increased by 4% weekly to 1.45 mln tonnes, which has weighed down oil market. But due to lingering U.S.-China trade concerns and ongoing tensions between Beijing and Ottawa, oil market may have little room for declines. Buyers can wait for steady price falls to make proper replenishment.
Soybean oil: GB Grade I soybean oil is mainly priced at 5,170-5,310 yuan/tonne in domestic coastal areas, down by 30-60 yuan/tonne. (Tianjin 5,170-5,180, Rizhao 5,210, and Zhangjiagang 5,310).
Palm oil: 24-degree palm oil is mainly priced at 4,280-4,310 yuan/tonne in coastal areas, down 10-40 yuan/tonne. (Tianjin 4,300-4,310, down 20; Rizhao 4,310, down 40; Zhangjiagang 4,280, down 20; Guangzhou 4,310, down 10; and Xiamen not offered).
Imported rapeseed oil: Imported rapeseed oil goes down today, of which it settle down 10-20 yuan at 7,020-7,200 yuan/tonne in coastal areas. (Fujian 7,040, down 10; Guangdong 7,020, down 10; and Guangxi 7,100, stable). Rapeseed oil market has few buyers recently as its demand is severely influenced by its enlarging spread with soybean oil and palm oil. Furthermore, mills have kept high utilization rate for soybean crush due to good margins from South American crops, and palm oil inventory have also been growing in recent two months. Therefore, rapeseed oil market is dragged down and its short-term trend may suffer some corrections. But rapeseed posts a tight supply outlook amid tensions between China and Canada. Overall, short-term rapeseed oil will not slump before a thaw between Beijing and Ottawa, but it will take plunge upon a detente. Buyers can just wait on the sidelines.
Cottonseed oil: Cottonseed oil today stays stable with a rise 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 upward potential 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. Besides, today oils on DCE further fall back and spots soybean oil and palm oil lower 10-60 yuan/tonne. Short-term cottonseed oil is likely to remain relatively stable and buyers are suggested to take a hand-to-mouth buying strategy.
(USD $1=CNY 6.92)
