Today (Jun. 13th), 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 and strong offers 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 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 fluctuate in narrow range and buyers are suggested to take a hand-to-mouth buying strategy.
Oils:
Summary: U.S. soybean futures jumped higher as rains forecast in the coming week threatened to further delay soy plantings and put late crop yields at risk of summer high temperature or autumn early frost, and oil futures snap off losses to rebound on the Dalian Commodity Exchange today. In spot markets, soybean oil and palm oil increase by 10-30 yuan/tonne with stronger trading at low prices. This round of unfavorable weather conditions will again bolster the oil market, so that short-term prices may post moderate bounces in fluctuation, but domestic oil futures have posted smaller gains amid the arbitrage of buying meals and selling oils. Mills have slowed down their delivery recently entering the slack season, so that soybean oil and palm oil both see rises in inventory. Therefore, oil prices will have limited upward impetus under weak fundamentals, and may follow futures to post frequent fluctuations. Buyers are suggested to make proper replenishment on the dips, but not to chase up price excessively.
Soybean oil: GB Grade I soybean oil is mainly priced at 5,230-5,380 yuan/tonne in domestic coastal areas, broadly up by 10-30 yuan/tonne. (Tianjin 5,230-5,240, Rizhao 5,220, and Zhangjiagang 5,380, and Guangzhou 5,310).
Palm oil: 24-degree palm oil is mainly priced at 42,90-4,350 yuan/tonne in coastal areas, partially up by 20--30 yuan/tonne. (Tianjin 4,330-4,340, up 20; Rizhao 4,350, flat; Zhangjiagang 4,320, flat; Guangzhou 4,290, up 30; and Xiamen not offered).
Imported rapeseed oil: Imported rapeseed oil rises today, of which it settles up 20-30 yuan at 7,070-7,200 yuan/tonne in coastal areas. (Fujian 7,070, up 30; Guangdong 7,080, up 20; and Guangxi 7,200, stable). The import of rapeseed and its oil from Canada is still confronted with tensions between countries, so rapeseed supply will get tightened, and rapeseed oil prices will remain at high levels. But the demand for rapeseed oil is weak due to its large price spread with soybean oil and palm oil, both of which have already owned huge inventories. Moreover, June 17th will see a 80,000-tonne of rapeseed oil and a 300,000-tonne of soybeans under the hammer, so that mills will maintain high utilization rate for soybean crush under sufficient supply. These will all make joint efforts to drag down rapeseed oil market. Buyers can make small replenishment on the dips to keep light stock on account of policy risks.
Cottonseed oil: Cottonseed oil today stays stable with a rise of 100 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; weather speculation restarts, and today oils on DCE rebound from earlier declines, spot soybean oil and palm oil up 10-30 yuan/tonne, because according to weather forecast, a heavy rain in US in upcoming week may result in further delay of planting progress, and even a disaster for late-sowing soybean, which may suffer from summer's high temperature and autumn's early frost. 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. Short-term cottonseed oil is likely to fluctuate narrowly and buyers can take a hand-to-mouth buying strategy for the moment.
(USD $1=CNY 6.92)
