Today (Jun. 25th), 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 yesterday. Quotations from traders is stable due to a small amount of imported and distributed soybean supply from Tianjin port and a favorable demand. Chinese Vice Premier held a telephone conversation with U.S. Trade Representative and Treasury Secretary. The two sides exchanged opinions on economic and trade issues in line with the instructions made by the two heads of state, and agreed to continue to maintain contact. Although US-China trade relationship is expected to improve, US soybean import is still restricted, 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 partially stable with most purchase activities suspending, due to the reducing supply of cottonseed and a selling-loath mood of some traders holding goods on their optimistic outlook. However, cottonseed market is weighted on when operation rate and purchase activity are lower on poor crush margin; some mills mainly use its own stock and 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 and wait for the news of this week's trade talks.
Oils:
Summary: U.S soybeans traded higher last night on worry over further planting delays due to wet weather in Midwest and on upbeat sentiment for trade talks later this week, but oil futures fluctuate to edge down on the Dalian Commodity Exchange today. Oil spot prices are mostly stable with some fluctuations of 10-30 yuan/tonnes in tepid trading. Soybean oil stockpiles have increased by 1.6% to 1.48 mln tonnes, and palm oil inventory has also increased by 10,000 tonnes to 690,000 tonnes. But oils are not in the right season, and the demand is predicted to turn better only from the second half in July. Therefore, oil prices are dragged down by negative fundamentals. 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 fluctuation at a narrow range. Buyers are suggested to keep light stockpiles for the moment.
Soybean oil: GB Grade I soybean oil is mainly priced at 5,150-5,330 yuan/tonne in domestic coastal areas, fluctuating by 10-30 yuan/tonne. (Tianjin 5,150-5,170, Rizhao 5,190-5,200, and Zhangjiagang 5,330, and Guangzhou 5,270).
Palm oil: 24-degree palm oil is mainly priced at 4,250-4,320 yuan/tonne in coastal areas, down by 10 yuan/tonne partially. (Tianjin 4,310-4,320, flat; Rizhao 4,290, flat; Zhangjiagang 4,240, down 10; Guangzhou 4,250, down 10; and Xiamen not offered).
Imported rapeseed oil: Imported rapeseed oil are stable today, of which it settles at 6,890-7,000 yuan/tonne in coastal areas. (Fujian 6,890, stable; Guangdong 6,900, stable; and Guangxi 7,000, stable). Rapeseed import is small since there is no sign of a thaw between Beijing and Ottawa, so that rapeseed and its oil supply will head for a tight outlook in the second half of July. Therefore, rapeseed oil market will be buoyed. But its demand is still subject to its large price difference with soybean oil and palm oil, and their stockpiles have been piling up. Moreover, soybean crush will maintain at a relatively high level amid its bumper supply. These will all drag down the market from further rises. Buyers are suggested to keep light stockpiles on the 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; 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 and wait for the news of this week's trade talks.
(USD $1=CNY 6.88)
