Today (Jun. 11th), the market for oilseeds and oils in China is shown as follows:
Oilseeds:
Imported soybean: Imported soybean prices are steady with some rises today, among which Russian and Myanmar soybeans are not offered for out of stock, Kazakhstan soybean goes up 140 yuan/tonne from yesterday at 4,470 yuan/tonne, and Ukraine soybean is unchanged from yesterday at 4,800 yuan/tonne. China's soybean market is favourable and up on traders' optimistic outlook as the arrivals in Tianjin ports are few compared with the good demand and quick delivery pace. 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 go strong.
Cottonseed: Cottonseed prices today are stable and weighted on 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; quantity of market trading is not a lot. 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 pare gains in narrow range and buyers are suggested to take a hand-to-mouth buying strategy.
Oils:
Summary: U.S. soybeans inched higher in overnight trading on concerns about soybean output this year as the crop was 60% planted compared to 92% last year and 88% for the 5-year average as of June 9th.,and oil futures post fluctuations on the Dalian Commodity Exchange today. In spot markets, soybean oil and palm oil fluctuate by 10-20 yuan/tonne, attracting some purchases at low prices and little trading at high levels. Soybean oil inventory has increased by 2.5% weekly to 1.44 mln tonnes on grown utilization rate, and palm oil has also stockpiled up by 1% to 737,000 tonnes. Meanwhile, mills have been buying up on South American soybeans, making its supply out of question in the next two to three months, so that they will maintain high utilization rate. Oil market is now pressured by its fundamentals. But oil futures are still supported by the weather speculation on U.S. soybeans and the stalemate of Beijing with Washington and Ottawa. In the short term, oil spot market is predicted to follow futures to consolidate in narrow-range fluctuation.
Soybean oil: GB Grade I soybean oil is mainly priced at 5,230-5,400 yuan/tonne in domestic coastal areas, some fluctuating by 10-20 yuan/tonne. (Tianjin 5,230-5,250, Rizhao 5,230, and Zhangjiagang 5,400, and Guangzhou 5,320).
Palm oil: 24-degree palm oil is mainly priced at 4,320-4,360 yuan/tonne in coastal areas, broadly down by 10-20 yuan/tonne. (Tianjin 4,350-4,360, down 10; Rizhao 4,360, down 10; Zhangjiagang 4,330, down 20; Guangzhou 4,320, down 10; and Xiamen not offered).
Imported rapeseed oil: Imported rapeseed oil steadily edges lower today, of which it settles down 10-20 yuan at 7,050-7,200 yuan/tonne in coastal areas. (Fujian 7,070, down 20; Guangdong 7,050, down 30; and Guangxi 7,200). Rapeseed oil 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 supply in coming two to three months. Therefore, rapeseed oil market is weighed down by huge oil stockpiles, and its short-term trend may adjust in fluctuation at high levels. But rapeseed supply may get tightened amid tensions between China and Canada, so short-term rapeseed oil price will not collapse. Buyers can wait on the sidelines.
Cottonseed oil: Cottonseed oil today stays stable with a rise of 50 yuan/tonne for some prices. And some support comes from the following situations that the operation rates and output are low on barley harvest; cottonseed price is strong. However, cottonseed oil is weighted on owing to the limited consumption for cottonseed oil as blending oils, thin turnover of new orders, and high fundamental pressure in main oil market. Short-term cottonseed oil is likely to fluctuate narrowly and buyers can stay on the sideline for the present.
(USD $1=CNY 6.92)
