Today (Jun. 18th), 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, and Uruguayan soybean price is unchanged from yesterday at 4,370 yuan/tonne.
China's soybean market is favourable on traders' optimistic outlook and strong offers for the arrivals in Tianjin ports are little compared to 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 and poor crush margin; 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 continued to jump higher in overnight trading as more rains are still forecast in the Midwest in the next two weeks. Its planting was 77% finished on the week as of June 16th, lagging the average market estimate of 79%, the completion of 96% a year earlier and the five-year average of 93%. Oil futures still run below the previous close, in spite of some gains. And in the spot markets, soybean oil is traded mixed and palm oil posts a partial rise both in tepid trading, and a weekly increase of 1.2% to 1.46 mln tonnes in soybean oil inventory. While oil is now in weak demand, soybean oil inventory will keep increasing as soybean crush is expected to hit 1.80 mln tonnes in the next two weeks. Bearing so much pressure from its fundamentals, oil market will limited impetus for bounces. But due to lingering wet weather for U.S. soybeans and little downside space for current low oil prices, short-term oil market will continue its narrow fluctuations to consolidate on the back of futures. Buyers are suggested to make proper replenishment on the dips, but not to excessively drive up prices.
Soybean oil: GB Grade I soybean oil is mainly priced at 5,250-5,430 yuan/tonne in domestic coastal areas, a partially rise of 10-20 and a partial lossof 10 yuan/tonne. (Tianjin 5,250-5,270, Rizhao 5,250, and Zhangjiagang 5,430, and Guangzhou 5,350-5,360).
Palm oil: 24-degree palm oil is mainly priced at 4,310-4,360 yuan/tonne in coastal areas, some up by 10-30 yuan/tonne. (Tianjin 4,350-4,360, up 10; Rizhao 4,350, flat; Zhangjiagang 4,330, up 30; Guangzhou 4,310, up 10; and Xiamen not offered).
Imported rapeseed oil: Imported rapeseed oil steadily edges higher today, of which it settles up 10-20 yuan at 7,070-7,350 yuan/tonne in coastal areas. (Fujian 7,070, up 20; Guangdong 7,080; and Guangxi 7,350). The import of Canadian rapeseed oil and rapeseed is confront with such obstacles as tensions between China and Canada and strict inspection and quarantine procedures. Before a thaw in tensions, rapeseed oil prices will remain at high levels. However, its demand is weak due to its enlarged price spread with soybean oil and palm oil that are in huge inventory. Moreover, soybean crush is expected to return to a high level of 1.80 mln tonnes in the coming two weeks. Rapeseed oil market is thus weighed down to have limited space for price rises. Overall, rapeseed oil market is forecast to maintain its high prices in the near term. Buyers can make replenishment in small batch upon price declines, and traders need to have a good control of positions due to huge uncertainties in policy.
Cottonseed oil: Cottonseed oil today stays stable with low trading volume. And some support comes from the following situations that the operation rates and output are low on barley harvest and poor crush margin; cottonseed price is strong; and US soybeans is going up for 6 consecutive days on weather speculation and spot soybean oil partially rises 10-20 yuan/tonne. However, cottonseed oil is weighted on owing to poor delivery in mills and the limited consumption for cottonseed oil as blending oils. Short-term cottonseed oil is likely to fluctuate narrowly and buyers can take a hand-to-mouth purchasing strategy.
(USD $1=CNY 6.93)
