Today (Jun. 24th), the market for oilseeds and oils in China is shown as follows:
Oilseeds:
Imported soybean: Imported soybean price is steady today, among which Uruguayan soybean is not offered for out of stock, Kazakhstan soybean is unchanged at 4,470 yuan/tonne from last Friday. Quotations from traders is stable due to a small amount of imported and distributed soybean supply from Tianjin port and a favorable demand. This week U.S.-China trade talks will restart and the two countries' presidents will meat in Osaka during the G20 Summit. Although US-China trade relationship is expected to improve, US soybean import is still restricted ahead of an agreement made by the two parties, which is favorable 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 maintain stable.
Cottonseed: Cottonseed prices today are stable with a decline of 0.01 yuan/kg for some prices when the cottonseed trading is not much as oil mills are reluctant to purchase and some mills mainly use its own stock due to poor crush margin and low operation rate. However, the decline is curbed by the optimistic outlook of some dealers holding goods and their selling-loath mood amid a tight supply of cottonseed day by day. Short-term price is likely to fluctuate in narrow range and buyers can stay on the sideline for the present.
Oils:
Summary: U.S. soybean closed with losses as its planting was expected to propel due to the break of rainfalls in Midwest, and oil futures drop moderately on the Dalian Commodity Exchange today. In the physicals, soybean oil and palm oil slip by 10-50 yuan/tonne in tepid trading. Meanwhile, soybean oil stockpiles have increased by 1.6% to 1.48 mln tonnes on the crush of 1.79 mln tonnes last week, and palm oil inventory has also increased by 10,000 tonnes to 690,000 tonnes. Therefore, oil prices are dragged down by negative fundamentals and resumed trade talks. But the weather speculation on U.S. soybeans is yet to finish, and it is still too early to expect a trade deal in trade talks, so short-term oil spot prices will have little downside potential and will maintain its fluctuations to adjust. Buyers are suggested to keep light stockpiles and wait for low and stable prices to make replenishment in small batch.
Soybean oil: GB Grade I soybean oil is mainly priced at 5,150-5,300 yuan/tonne in domestic coastal areas, down by 20-50 yuan/tonne. (Tianjin 5,150-5,170, Rizhao 5,170, and Zhangjiagang 5,300, and Guangzhou 5,250-5,260).
Palm oil: 24-degree palm oil is mainly priced at 4,260-4,320 yuan/tonne in coastal areas, down by 10-40 yuan/tonne. (Tianjin 4,310-4,320, down 10; Rizhao 4,290, down 40; Zhangjiagang 4,250, down 30; Guangzhou 4,260, down 20; and Xiamen not offered).
Imported rapeseed oil: Imported rapeseed oil jumps higher today, of which it settles up 10-20 yuan at 6,890-7,000 yuan/tonne in coastal areas. (Fujian 6,890, up 20; Guangdong 6,900, up 20; and Guangxi 7,000, stable). Rapeseed oil inventory declined slightly to 526,000 tonnes in coastal areas last week, and rapeseed points to a tight supply outlook as its import is disrupted by tensions between China and Canada, so rapeseed oil prices still maintain at a high level. But the demand for rapeseed oil has been weak due to its large price difference with soybean oil and palm oil whose inventories have been huge. Meanwhile, soybean crush will maintain at a high level for its huge supply. These are all restraints on price rises. Buyers are suggested to maintain light stockpiles on account of forthcoming trade talks.
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 poor crush margins, and 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. Besides, today oils on DCE fall back moderately and spot soybean oil and palm oil drop 10-50 yuan/tonne. Short-term cottonseed oil is likely to fluctuate narrowly and buyers can stay on the sideline for the present.
(USD $1=CNY 6.88)
