Today (Jun. 14th), 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 due to the reducing supply of cottonseed and traders' selling-loath mood. However, cottonseed market is 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. 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 for a second consecutive session on concerns over lower-than-forecast planting acreage and damage to late crops by relentless rains in Midwest, and oil futures also post further rises on the Dalian Commodity Exchange today as traders close their arbitrage of buying meals and selling oils. In spots markets, soybean oil and palm oil increase by 20-50 yuan to attract better trading at lower prices. Due to concerns on weather conditions, domestic oil futures broadly see gains, but pare some gains after early trade. 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. Amid lingering concerns over weather conditions, oil market is still expected to follow futures to post moderate rebounds, but there will be little space for rises and may be frequent fluctuations. Buyers can replenish on the dips to maintain proper stockpiles and not to chase up prices too high.
Soybean oil: GB Grade I soybean oil is mainly priced at 5,250-5,410 yuan/tonne in domestic coastal areas, mostly up by 20-50 yuan/tonne. (Tianjin 5,250-5,260, Rizhao 5,270, and Zhangjiagang 5,410, and Guangzhou 5,340).
Palm oil: 24-degree palm oil is mainly priced at 4,310-4,380 yuan/tonne in coastal areas, up by 20--30 yuan/tonne. (Tianjin 4,350-4,360, up 20; Rizhao 4,380, up 30; Zhangjiagang 4,340, up 20; Guangzhou 4,310, up 20; and Xiamen not offered).
Imported rapeseed oil: Imported rapeseed oil rises today, of which it settles up 10-40 yuan at 7,070-7,200 yuan/tonne in coastal areas. (Fujian 7,070, stable; Guangdong 7,090, up 10; and Guangxi 7,200, stable). Rapeseed supply will likely get tightened as its import from Canada is still confronted with tensions between countries, so rapeseed oil prices will remain at high levels before a thaw. But the demand for rapeseed oil is weak due to its large price spread with soybean oil and palm oil, whose inventories have been rising. And due to huge soybean imports arriving at ports, mills will still remain high utilization rate. Therefore, price rises of rapeseed oil will still be pressured by its fundamentals, and later trend will depend largely on the relationship between China and Canada. Buyers can keep light stockpiles.
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; today oils on DCE further increase, spot soybean oil and palm oil up 20-50 yuan/tonne due to market concerns over US soybean planting delay and a possible damage for late-sowing soybean amid the sustained rainfall in the Midwest. However, cottonseed oil is weighted on owing to slow delivery, the limited consumption for cottonseed oil as blending oils, and 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)
