Today (Jun. 10th), the market for oilseeds and oils in China is shown as follows:
Oilseeds:
Imported soybean: Imported soybean price is steady today, among which Myanmar soybean is not offered for out of stock, Kazakhstan soybean is unchanged at 4,330 yuan/tonne from that before holiday, and Ukraine soybean is 4,800 yuan/tonne. China's soybean market is favourable on traders' optimistic outlook as the arrivals in Tianjin ports are little compared with the good demand and quick delivery pace of traders. Besides, the US soybean import is restricted as uncertain outlook of U.S.-China trade war. However, amid 96.1% harvesting of Argentina's soybean and the bumper crop harvest in South America, a huge global supply still curbs China's market. Short-term prices likely go strong.
Cottonseed: Cottonseed prices today are stable with a decline of 0.05-0.06 yuan/kg when operation rate and purchase activity are lower on barley harvest; cottonseed transport is not good as the demand for vehicles from Xinjiang to inland increases on Xinjiang fruit marketing; with low quantity of market trading, cottonseed pares gains. However, the price decline is limited by a decreasing cottonseed supply day by day and a selling-loath mood from some traders. Short-term prices are likely to fluctuate in narrow range. Buyers can just wait on the sidelines.
Oils:
Summary: U.S soybeans closed lower on favorable weather conditions, but soybean oil edges higher in choppy trade on the Dalian Commodity Exchange due to the completion of buying soybean meal and selling soybean oil. In spot markets, soybean oil and palm oil post a partial rise of 10-30 yuan/tonne with some purchases at low prices, but the total trading volume remains insignificant. Soybean oil inventory has just increased fractionally as mills have just raised their utilization rate slightly, and palm oil import will lessen to about 14 cargoes in June; hence, these have helped drive oil futures to post moderate gains today. But soybean supply will be out of question in the coming two to three months since Chinese buyers have scooping up on South American crops, so that soybean crush will maintain at a relatively high level. Overall, oil market will not post sharp rises pressured by the fundamentals and will probably follow futures to consolidate in fluctuation.
Soybean oil: GB Grade I soybean oil is mainly priced at 5,240-5,400 yuan/tonne in domestic coastal areas, mostly up by 10-30 yuan/tonne. (Tianjin 5,240-5,250, Rizhao 5,220, and Zhangjiagang 5,400, and Guangzhou 5,340).
Palm oil: 24-degree palm oil is mainly priced at 4,330-4,370 yuan/tonne in coastal areas, some up by 10-20 yuan/tonne. (Tianjin 4,360-4,370, up 20; Rizhao 4,370, flat; Zhangjiagang 4,350, up 10; Guangzhou 4,330, up 10; and Xiamen 4,400, flat).
Imported rapeseed oil: Imported rapeseed oil steadily edges up today, of which it settles up 20-30 yuan at 7,080-7,200 yuan/tonne in coastal areas. (Fujian 7,100, up 30; Guangdong 7,080, up 20; and Guangxi 7,200). Rapeseed oil inventory has declined slightly to 470,000 tonnes in coastal areas last week. And the import of rapeseed and its oil is still confronted with obstacles as Canadian Foreign Minister has said that Canada and China have been in an impasse, under which rapeseed supply may get tightened in July. Rapeseed oil prices will remain high before a thaw in tensions. However, rapeseed oil has lost its buyers as its demand is severely impacted by its large spread with soybean oil and palm oil. Moreover, mills will keep high utilization rate for soybean amid its huge import in the third quarter. Therefore, price rises of rapeseed oil will keep under check by huge stockpiles of soybean oil and palm oil. Overall, the price will remain high before a thaw and will quickly take plunge on the contrary, buyers can keep light stockpiles.
Cottonseed oil: Cottonseed oil today stays stable with some weak fluctuations of 50 yuan/tonne, which is due to the limited consumption for cottonseed oil as blending oils, thin turnover of new orders, and high fundamental pressure in main oil market. However, cottonseed oil market is supported when operation rate and output are lower on barley harvest; cottonseed price is high; today soybean oil on on DCE sees a slight rise with fluctuations, spot soybean oil and palm oil partially up 10-30 yuan/tonne. Short-term cottonseed oil is likely to fluctuate narrowly and buyers can stay on the sideline for the present.
(USD $1=CNY 6.91)
