Today (May 30th), the market for oilseeds and oils in China is shown as follows:
Oilseeds:
Imported soybean: Imported soybean price is steady today, among which Russian soybean is temporarily not offered, Kazakhstan soybean is unchanged at 4,250 yuan/tonne from yesterday, and Myanmar soybean is unchanged at 4,330 yuan/tonne from yesterday. China's soybean market is favourable on traders' optimistic outlook as the arrivals in China's ports are little, while the demand is strong. 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 rise 0.02-0.09 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 continued its gains overnight on further planting delays under forecasts for more rains across the Midwest, but oil futures break gains to decline on the Dalian Commodity Exchange today. In spot markets, soybean oil broadly goes down 10-50 yuan/tonne and palm oil posts a partial loss of 10 yuan/tonne in tepid trading. Futures enter into the correction territory on profit taking after a wave of huge rises yesterday. Besides, mills have bought at least 45 cargoes of soybeans from South America in the past two weeks, so that they still keep high utilization rate. Therefore, oil prices are weak in extending huge rises pressured by bearish fundamentals of adequate supply of soybean oil and palm oil. But soybean import cost is pushed higher by rising premiums of South American crops under U.S.-China trade frictions, and rapeseed and its oil import has already been blocked by tensions between Beijing and Ottawa. In the meantime, the market is still full of “weather talks” on U.S. soybeans. Therefore, oil market will have little downward potential before the speculation is over, and is expected to edge up in fluctuation. Buyers can wait for steady falls to make proper replenishment.
Soybean oil: GB Grade I soybean oil is mainly priced at 5,300-5,450 yuan/tonne in domestic coastal areas, down 10-50 yuan/tonne. (Tianjin 5,270-5,280, Rizhao 5,300, and Zhangjiagang 5,400, and Guangzhou 5,370).
Palm oil: 24-degree palm oil is mainly priced at 4,340-4,430 yuan/tonne in coastal areas, down by 10 yuan/tonne partially. (Tianjin 4,400, unchanged; Rizhao 4,430, down 10; Zhangjiagang 4,400, unchanged; Guangzhou 4,400; and Xiamen not offered).
Imported rapeseed oil: Imported rapeseed oil steadily goes down today, of which it settle down 10-20 yuan at 7,030-7,200 yuan/tonne in coastal areas. (Fujian 7,170; Guangdong 7,140; and Guangxi 7,200, stable). The market has seen few buyers as its demand is fiercely cut by its enlarging spread with soybean oil and palm oil, coupled by very high utilization rate for soybean crush. Therefore, rapeseed oil market is dragged down to inch lower today. But due to a tight supply outlook of rapeseed amid tensions between China and Canada, short-term rapeseed oil will not slump and will remain at high levels. Buyers can wait on the sidelines.
Cottonseed oil: Cottonseed oil today stays stable with a rise of 50-100 yuan/tonne due to low operation rates and output, as well as strong cottonseed prices. 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 main oil market. Besides, today oils on DCE stop rising and decline, and spots soybean oil mostly are down 10-50 yuan/tonne. Short-term cottonseed oil is likely to stay stable with good momentum for growth as US soybean speculation on weather will continue for the time being and there's no relief in sight for US-China trade wars.
(USD $1=CNY 6.91)
