Today (Jun. 28th), 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. While American and Chinese leaders will meet each other during G20 summit, 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 Morning, according to Bloomberg. There is an uncertainty over U.S.-China trade talks and 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 lower 0.02-0.03 yuan/kg with most purchase activities suspending, 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; and delivery of cottonseed oil and cottonseed meal is not good. 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 and wait for the news about U.S.-China leaders' meeting on Saturday Morning.
Oils:
Summary: U.S. soybean futures fell further in overnight trading on favorable weather, and oil futures post narrow fluctuations on the Dalian Commodity Exchange today. In the physicals, soybean oil and palm oil post a partial decline of 10-30 yuan/tonne in tepid trade. As mills keep high utilization rate for a possible import of 29.4 mln tonnes of soybeans in the third quarter, soybean oil inventory is expected to break through 1.50 mln tonnes. And palm oil stockpiles also keep growing. Therefore, mills are unable to raise the prices with a glut in the market, and oil spot prices have followed futures to fluctuate frequently. The market is now waiting for the soybean planting acreage and inventory in the report of USDA early Saturday morning and the meeting between the two presidents on Saturday. Oil market will post moderate losses if China and the United States confirm to resume their trade talks to ease their current deadlock, but if not, it will be another story. The demand for small-packing oil is expected to pick up in the second half of July, which will help oil market rebound moderately in fluctuation. Buyers can wait for low and stable prices to make replenishment in small batch on the dips.
Soybean oil: GB Grade I soybean oil is mainly priced at 5,160-5,340 yuan/tonne in domestic coastal areas, some up by 20 and some down by 10-30 yuan/tonne. (Tianjin 5,160, Rizhao 5,160, Zhangjiagang 5,340, and Guangzhou 5,280).
Palm oil: 24-degree palm oil is mainly priced at 4,230-4,330 yuan/tonne in coastal areas, some down by 10-20 yuan/tonne. (Tianjin 4,320-4,330, flat; Rizhao 4,270, down 20; Zhangjiagang 4,240, flat; Guangzhou 4,220, down 10; and Xiamen not offered).
Imported rapeseed oil: Imported rapeseed oil rises today, of which it settles up 10-20 yuan at 6,860-6,960 yuan/tonne in coastal areas. (Fujian 6,870, up 10; Guangdong 6,890, up 10; and Guangxi 6,960, stable). As there is no sign of a thaw between Beijing and Ottawa, rapeseed with little volume arriving at port will head for a tight supply outlook in the second half of July. Therefore, rapeseed oil market will get buoyed. But the demand for rapeseed oil is now subject to its large price gap with soybean oil and palm oil. And the inventory of soybean oil and palm oil have been increasing, whilst mills will maintain high utilization rate amid huge soybean supply. These will jointly drag down the market and subdue its upward potential. Buyers can focus on the meeting between the two presidents this Saturday and the soybean planting acreage in the report of USDA early Saturday morning.
Cottonseed oil: Cottonseed oil today stays stable with a drop of 100 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. Besides, today spot soybean oil and palm oil partially decline 10-30 yuan/tonne. However, the price decline is restricted when operation rate and output is low on poor crush margin; and cottonseed price is high. 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 about U.S.-China leaders' meeting on Saturday Morning.
(USD $1=CNY 6.86)
