Today (Jun. 19th), 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.
Quotations from traders keep strong due to a small amount of imported and distributed soybean supply from Tianjin port and a favorable demand. Meanwhile, a telephone conversation by leaders of China and the United States has confirmed a meeting between the two leaders during the upcoming Group of 20 (G20) summit and before that, trade talks will restart, but US soybeans import is still restricted ahead of a deal made by the parties, which is still favourable to China's market. However, the bumper crop harvest in South America and huge global supply still curbs China's market. Short-term prices likely go strong.
Cottonseed: Today cottonseed prices 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 stay on the sideline for the present.
Oils:
Summary: U.S. soybean futures extended gains overnight, buoyed by the restart of trade talks between China and the United States after two presidents had a telephone talk to confirm a meeting at the G20 summit. But oil futures reverse to decline on the Dalian Commodity Exchange today as this news is bearish to domestic market, soybean crush is forecast to hit above 1.80 mln tonnes in the coming two weeks, and soybean oil inventory has already increased by 1.2% weekly to 1.46 mln tonnes. In the spot markets, soybean oil declines by 30-50 yuan/tonne and palm oil by 10-30 yuan/tonne in light trading. Short-term oil market will follow futures prices to fall on hope for some progress in trade relations, but there will be little downside space for current low prices due to lingering weather speculation on U.S. soybeans and huge uncertainties in trade frictions. Overall, it will post frequent fluctuations on the back of futures, and buyers can wait for steady falls to make proper replenishment on the dips.
Soybean oil: GB Grade I soybean oil is mainly priced at 5,210-5,350 yuan/tonne in domestic coastal areas, down by 30-50 yuan/tonne. (Tianjin 5,210-5,220, Rizhao 5,220, and Zhangjiagang 5,350, and Guangzhou 5,300).
Palm oil: 24-degree palm oil is mainly priced at 4,290-4,350 yuan/tonne in coastal areas, down by 10-30 yuan/tonne. (Tianjin 4,340-4,350, down 10; Rizhao not offered; Zhangjiagang 4,300, down 30; Guangzhou 4,290, down 20; and Xiamen not offered).
Imported rapeseed oil: Imported rapeseed oil drops today, of which it settles down 80-150 yuan at 6,910-7,200 yuan/tonne in coastal areas. (Fujian not offered; Guangdong 6,910, down 100; and Guangxi 7,200, down 150). U.S. soybean futures closed with gains overnight on hope for some improvements in trade relations between China and the United States as President Xi Jinping was invited to hold a telephone talk with President Donald Trump to confirm an extended meeting at the G20 summit, and their respective teams would begin talks prior to the meeting. But this news is bearish to domestic market, so that rapeseed oil futures slump on the Zhengzhou Commodity Exchange today. In addition, rapeseed oil market is bleak due to its low price ratio against soybean oil and palm oil. Besides, soybean crush will maintain at a high level on account of its abundant supply in the coming two to three months. Therefore, rapeseed oil market is weighed down by bumper oil supply. But rapeseed oil price may still remain high as rapeseed import is interrupted by lingering stalemate between China and Canada. Buyers can wait on the sidelines for the moment.
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. However, cottonseed oil is weighted on owing to poor delivery in mills and the limited consumption for cottonseed oil as blending oils as well as a restart of U.S.-China trader talks after a phone conversation that confirms a meeting between leads of America and China. Besides, today oils on DCE stop rising and begin to decline, and spot soybean oil drops 30-50 yuan/tonne. Short-term cottonseed oil is likely to fluctuate narrowly and buyers can stay on the sideline for the present.
(USD $1=CNY 6.90)
