Today (Jun. 12th), the market for oilseeds and oils in China is shown as follows:
Oilseeds:
Imported soybean: Imported soybean price is steady today, among which Myanmar and Ukraine soybean is not offered for out of stock, Kazakhstan soybean is unchanged at 4,470 yuan/tonne from yesterday. 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, 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 with a drop of 0.06 yuan/kg 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 wait-and-see attitudes.
Oils:
Summary: U.S. soybeans posted gains on the back of corn which climbed higher after the USDA in a monthly report slashed its yield projection, yet still kept under checked by its further raised inventories. Oil futures narrow down gains after higher opens on the Dalian Commodity Exchange today. In cash markets, soybean oil and palm oil broadly drop by 10-30 yuan/tonne in tepid trading. Mills have slowed down their delivery recently entering the slack season, so that soybean oil and palm oil both see rises in inventory. And mills will also maintain high utilization rate in view of huge soybean supply. Therefore, oil market will be weak in rises under such an oversupply state. But due to changeable weather conditions for U.S. soybeans, and rocky relationship of Beijing with Washington and Ottawa, there will be little downside for oils that have already stayed at low price territory. Overall, short-term oil spots will probably follow futures to post narrow fluctuations, and buyers can wait for steady declines to replenish on the dips.
Soybean oil: GB Grade I soybean oil is mainly priced at 5,210-5,350 yuan/tonne in domestic coastal areas, broadly down by 10-30 yuan/tonne. (Tianjin 5,210-5,230, Rizhao 5,210, and Zhangjiagang 5,350, and Guangzhou 5,300).
Palm oil: 24-degree palm oil is mainly priced at 42,90-4,350 yuan/tonne in coastal areas, broadly down by 10-30 yuan/tonne. (Tianjin 4,330-4,340, down 20; Rizhao 4,350, down 10; Zhangjiagang 4,320, down 10; Guangzhou 4,290-4,300, down 30; and Xiamen not offered).
Imported rapeseed oil: Imported rapeseed oil drops today, of which it settles down 10-20 yuan at 7,040-7,200 yuan/tonne in coastal areas. (Fujian 7,040, down 20; Guangdong 7,040, down 30; and Guangxi 7,200, stable). Rapeseed oil market has lost its buyers as its demand is severely impacted by its large spread with soybean oil and palm oil, and mills will maintain high utilization rate for huge soybean imports from June to August. Rapeseed oil market is thus weighed down such negative fundamentals as adequate inventories of soybean oil and palm oil. But rapeseed supply may get tightened after July as there is only one cargo separately for June and July amid tensions between China and Canada. Overall, short-term rapeseed oil will not collapse before a thaw in tensions, and will maintain at a high level, but there is also a huge risk in state policies. Buyers can take a hand-to-mouth basis.
Cottonseed oil: Cottonseed oil today stays stable. 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 as well as low purchase activities due to high fundamental pressure in main oil market. Besides, today oils on DCE come off early highs and soybean oil and palm oil spots mostly decline 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 6.92)
