Today (Jun. 20th), 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, trade relationship between China and America may improve as U.S. Trade Representative will speak with China's vice premier before the meeting of Chinese and American leaders, but US soybeans import has been still restricted ahead of a deal made by two parties, which is 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 closed lower in overnight trading, weighed down by profit taking and a dry weather outlook in the Midwest forecast by a weather agency, and oil futures extend losses on the Dalian Commodity Exchange today, except palm oil for its lower stockpiles. In spot markets, soybean oil and palm oil are little changed with some ups and downs by 10-20 yuan/tonne in tepid trading. U.S. Trade Representative would be speaking with a Chinese Vice Premier ahead of a meeting between President Donald Trump and President Xi Jinping, Bloomberg said in a report. The hope for the relationship improvement is bearish to domestic oil prices. Therefore, oil market is weighed down by increasing soybean oil inventory. But weather speculation on U.S. crops still continues and it is still to early to expect a trade deal in trade talks, so there will be little downside space for current low prices. Overall, oil spots may follow futures to post frequent fluctuations at a narrow range in the short run, and buyers can wait for low and stable prices to make proper replenishment on the dips.
Soybean oil: GB Grade I soybean oil is mainly priced at 5,210-5,370 yuan/tonne in domestic coastal areas, partially fluctuating by 10 yuan/tonne. (Tianjin 5,210-5,220, Rizhao 5,220, and Zhangjiagang 5,370, and Guangzhou 5,310-5,320).
Palm oil: 24-degree palm oil is mainly priced at 4,290-4,350 yuan/tonne in coastal areas, partially fluctuating by 10-20 yuan/tonne. (Tianjin 4,340-4,350, flat; Rizhao 4,350, up 20; Zhangjiagang 4,300, flat; Guangzhou 4,290, down 10; and Xiamen not offered).
Imported rapeseed oil: Imported rapeseed oil further drops today, of which it settles down 50-60 yuan at 6,890-7,200 yuan/tonne in coastal areas. (Fujian not offered; Guangdong 6,890, down 20; and Guangxi 7,200, flat). Rapeseed oil market is dragged down by bearish fundamentals. For one thing, its demand is severely affected by its large price spread with soybean oil and palm oil, and market traders said that a firm had bought in rapeseed cargoes for August shipments. For another, soybean oil inventory is piling up as mills maintain high utilization rate for huge soybean import from June to August. But rapeseed may point to a tight supply outlook in the second half of July amid tensions between China and Canada, and rapeseed oil has seen increasing trading volume in recent few days with some 30,000 tonnes in Eastern ports and 10,000 in Sichuan and Chongqing yesterday, so there will be limited space for price declines. Buyers can wait for low and stable prices to make replenishment in small batch.
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 margins; cottonseed price is strong. However, cottonseed oil is weighted on owing to the limited consumption for cottonseed oil as blending oils, thin turnover of new orders, high fundamental pressure in main oil market, and poor delivery volume. Short-term cottonseed oil is likely to fluctuate narrowly and buyers can stay on the sideline for the present.
(USD $1=CNY 6.88)
