Today (Jun. 27th), 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. As to U.S.-China relationship, leaders of two countries to meet at the G-20 summit and US would likely suspend the $300 billion tariff process. 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 meeting between U.S. President Donald Trump and China President Xi Jinping.
Oils:
Summary: U.S. President Donald Trump said an additional tariff of 10% would be placed on the remaining $300 billion of Chinese imports if there was no progress after his meeting with Chinese counterpart Xi Jinping this Saturday, according to a report by Bloomberg. Therefore, it is still early to expect a trade deal in the talks. Oil futures move upward in choppy trading on the Dalian Commodity Exchange today. In the physicals, soybean oil and palm oil post a partial rise of 20-30 yuan/tonne to attract some purchase at low price, but total trading volume remains low. Soybean shipments received at port is estimated at 2.94 mln tonnes in the third quarter, so mills will pick up their utilization rate. And soybean oil inventory is expected to hit 1.50 mln tonnes and palm oil inventory is also increasing, as it is not the peak season for oils. Therefore, oil market continues to be weighed down by fundamentals. But the price declines are limited by capricious weather conditions for U.S. soybeans and huge uncertainties in trade talks. Generally, short-term oil spots may continue to follow futures to extend range-bound and choppy trend, and buyers can maintain light stockpiles while waiting for the meeting between the two presidents and the planting acreage in the report of USDA on Saturday.
Soybean oil: GB Grade I soybean oil is mainly priced at 5,160-5,340 yuan/tonne in domestic coastal areas. (Tianjin 5,160-5,170, Rizhao 5,160, and Zhangjiagang 5,340, and Guangzhou 5,280).
Palm oil: 24-degree palm oil is mainly priced at 4,240-4,330 yuan/tonne in coastal areas, up by 20-30 yuan/tonne. (Tianjin 4,320-4,330, up 30; Rizhao 4,290, up 20; Zhangjiagang 4,240, up 20; Guangzhou 4,240, up 30; and Xiamen not offered).
Imported rapeseed oil: Imported rapeseed oil steadily fluctuates today, of which it fluctuates by 10-20 yuan to settle at 6,860-6,960 yuan/tonne in coastal areas. (Fujian 6,860, up 10; Guangdong 6,880, up 10; and Guangxi 6,960, stable). Rapeseed oil market has few buyers as its demand is severely cut by its large price spreads with soybean oil and palm oil. And mills may maintain high utilization rate for soybean crush due to its huge import from June to September. Due to such fundamentals as huge inventories of soybean oil and palm oil, rapeseed oil market turns bearish. However, it is unlikely that China and Canada will fix their mutual relationship immediately, and rapeseed will head for a tight supply outlook in the second half of July, so rapeseed oil prices may have limited downside space and will probably stay at a high level. Buyers can just wait on the sidelines for the moment.
Cottonseed oil: Cottonseed oil today stays stable with a drop of 50 yuan/tonne for some prices. Cottonseed oil is weighted on owing to the limited consumption for cottonseed oil as blending oils, high fundamental pressure in main oil market, and poor delivery volume. However, the price decline is restricted when operation rate and output is low on poor crush margin; cottonseed price is high; there is an uncertainty in trade talks for President Donald Trump said 10% additional U.S. tariffs would be placed on $300 billion goods from China if there’s no progress on a trade deal after the meeting on Saturday, according to Bloomberg; today oils on DCE go up with fluctuations and spot soybean oil and palm oil partially rise 20-30 yuan/tonne. Short-term cottonseed oil is likely to move sideways, and buyers are suggested to stay on the sideline for the present and wait for the news of the meeting between two heads of state.
(USD $1=CNY 6.88)
