Today (May 27th), 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 4,250 yuan/tonne from last Friday. China's soybean market is favourable on traders' optimistic outlook. The arrivals in China's ports are little, while the demand is good. Besides, The US soybean import is restricted as no new progress for 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 0.01-0.04 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. soybeans rose on last Friday night upon a far slower-than-normal planting progress hindered by unrelenting rains, and oil futures reverse losses to post modest bounces on the Dalian Commodity Exchange today. In spot market, soybean oil steadily increases by 10-20 yuan/tonne, and palm oil goes up by 20-50 yuan/tonne, with stronger trading at low prices. Apart from ongoing U.S.-China trade disputes and lingering tensions between Beijing and Ottawa, the market seems to have some sounds of weather speculation on U.S. soybeans. Furthermore, oil futures have already fallen to low levels and may enjoy some modest rebounds with fluctuations after losses for consecutive sessions. But mills are keeping their utilization rate high due to adequate soybeans and good crush margins, and traders are keen on the arbitrage of buying meals and selling oils in view of strong trading of soybean meal; thus, oil market will have limited rebound impetus. Buyers can make proper replenishment on the dips.
Soybean oil: GB Grade I soybean oil is mainly priced at 5,160-5,300 yuan/tonne in domestic coastal areas,a partial rise of 10-20 yuan/tonne. (Tianjin 5,160-5,170, Rizhao 5,210, Zhangjiagang 5,300, and Guangzhou 5,230).
Palm oil: 24-degree palm oil is mainly priced at 4,300-4,320 yuan/tonne in coastal areas, up 20-50 yuan/tonne. (Tianjin 4,310-4,320, up 20; Rizhao 4,340, up 30; Zhangjiagang 4,300, up 50; Guangzhou 4,320, up 20; and Xiamen not offered).
Imported rapeseed oil: Imported rapeseed oil stays basically stable today, of which it settle up 30-50 yuan at 7,080-7,200 yuan/tonne in coastal areas. (Fujian 7,080, up 40; Guangdong not offered; and Guangxi 7,200, stable). Rapeseed posts a tight supply outlook amid tensions between China and Canada, for which rapeseed oil will probably maintain its high price. However, rapeseed oil market has few buyers recently as its demand is severely influenced by its enlarging spread with soybean oil and palm oil, so its stockpiles have increased by 5.7% to 460,000 tonnes in coastal areas last week. Furthermore, global soybean has an adequate supply, and mills have kept high utilization rate for soybean crush. Hence, rapeseed oil will see its rises limited by pressure from oil fundamentals. Later trend will depend on a thaw in tensions, before which the price will remain high and after which it will take plunge rapidly. Buyers can keep light stockpiles for the moment.
Cottonseed oil: Cottonseed oil today stays stable with some fluctuations of 50 yuan/tonne when poor crush margins result in low operation rates and output and cottonseed prices are strong. Besides, today oils on DCE experience a modest rebound after earlier decline. 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. 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 6.89)
