Today (Jun. 4th), 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 and strong offers as the arrivals in China's ports are little compared with the strong demand and quick delivery pace of traders. Besides, the US soybean import is restricted as uncertain outlook of U.S.-China trade war. 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 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 maintain proper stock level upon low price.
Oils:
Summary: The rebound in U.S. soybean came upon a further delay in its planting, which was only 39% complete as of June 2nd, well below the market estimate of 42% and the pace of 86% a year earlier. Soybeans have posted bounces on the Globex due to weather speculations, and oil futures have slowed down declines to hover above the previous close on the Dalian Commodity Exchange. Oil spots broadly reverse their declines to steady, among which soybean oil and palm oil steadily fluctuate by 10-30 yuan/tonne with stronger trading at low prices. Oils have seen their positions held going lower than meals as traders continue to buy meals and sell oils in view of the strong trend of soybean meal, oil market is thus weighed down by its negative fundamentals. But soybean oil stockpiles have also fallen by 2.6% weekly to 1.41 mln tonnes, coupled with another wave of weather speculations, oil spots will probably go strong in fluctuation in the short term. Buyers can make appropriate replenishment on the dips to maintain safety stockpiles.
Soybean oil: GB Grade I soybean oil is mainly priced at 5200-5350 yuan/tonne in domestic coastal areas, some down by 10-30 yuan/tonne, and several up by 10 yuan/tonne. (Tianjin 5,200-5,210, Rizhao 5,210, and Zhangjiagang 5,350, and Guangzhou 5,270).
Palm oil: 24-degree palm oil is mainly priced at 4,330-4,370 yuan/tonne in coastal areas, fluctuating by 20-30 yuan/tonne. (Tianjin 4,350-4,360, unchanged; Rizhao 4,370, unchanged; Zhangjiagang 4,330, down 20; Guangzhou 4,330-4,340, up 30; and Xiamen not offered).
Imported rapeseed oil: Imported rapeseed oil steps up today, of which it settle up 30-50 yuan at 7,070-7,200 yuan/tonne in coastal areas. (Fujian 7,070, up 40; Guangdong not offered; and Guangxi 7,200, stable). The rocky relationship between Beijing and Ottawa and the strict inspection and quarantine process will stand in the way of rapeseed and its oil import from Canada in the near and middle term, so rapeseed oil will stay at high prices before a thaw in this relationship. But its demand has been weak due to its enlarging spread with soybean oil and palm oil whose stockpiles have been huge. Moreover, domestic mills have kept on high crush due to handsome margins in South American soybeans. The market is thus dragged down. Overall, rapeseed oil market may maintain its high prices in the near term. Buyers can make small replenishment on the dips, but traders must keep positions in good control given the uncertainty in policy.
Cottonseed oil: Cottonseed oil today stays stable with some declines of 50 yuan/tonne as the buyers' purchasing activities are curbed by the limited cottonseed oil volume for blending, thin turnover of new orders, and high fundamental pressure in main oil market. However, there are some factors propping up cottonseed oil market: operation rate and output are low compared with strong cottonseed price; US soybean planting is only 39%, far bellow 86% of the same period last year; weather speculation of US soybeans continues. Before weather speculation of US soybeans ends, cottonseed oil is likely to strongly fluctuate and buyers can make proper replenishment upon low prices.
(USD $1=CNY 6.91)
