Today (Jul. 4th), the market for oilseeds and oils in China is shown as follows:
Oilseeds:
Imported soybean: Imported soybean price is steady today, among which Kazakhstan soybean is unchanged at 4,470 yuan/tonne from yesterday, and Russian soybean is unchanged at 4,230 yuan/tonne from yesterday. The stable quotations from traders is supportive to China's soybean market amid rigid demands and insufficient supply of imported and distributed soybean. However, amid the relief of U.S.-China trade tension and a rumour that China will buy US soybean again, an expected increase of US soybean imports as well as the bumper crop harvest in South America is negative to the market in China. Short-term prices likely maintain stable.
Cottonseed: Cottonseed prices today are flat and partially lower 0.02 yuan/kg with most purchase activities suspending, when the cottonseed trading is not much as operation rate is low and oil mills are reluctant to purchase, some mainly using its own stock. Besides, 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.
Oils:
Summary: U.S. soybean futures rebounded on technical buying in overnight trading, and soybean oil snaps off declines to bounce fractionally and palm oil fluctuates to inch lower on the Dalian Commodity Exchange today. In the spot market, soybean oil goes up by 10-40 yuan/tonne and palm oil partly fluctuates by 10 yuan/tonne, both in overall tepid trading with some purchases at low prices. Due to flat trading and growing inventory of soybean meal, some mills have drastically reduced their utilization rate for swelling inventories, so that soybean oil has seen lower output. Meanwhile, the demand for small-packing oil will gradually turn better from the second half of July. The market has thus become more willing to prop up prices, so soybean oil price goes up today. Nevertheless, soybean import is huge in the third quarter, and importers have bought more palm oil cargoes due to recent growing profits, so oil market is confronted with weak fundamentals. In addition, as the weather now is favorable for farmers to speed up planting in the Corn Belt, U.S. soybean has limited space to rebound and will post frequent fluctuations. Overall, oil market is predicted to have weak impetus for bounces, and may follow futures to post a range-bound and choppy trend. Buyers are suggested to keep light stockpiles.
Soybean oil: GB Grade I soybean oil is mainly priced at 5,190-5,350 yuan/tonne in domestic coastal areas, up by 10-40 yuan/tonne. (Tianjin 5,190, Rizhao 5,220, Zhangjiagang 5,350, and Guangzhou 5,300).
Palm oil: 24-degree palm oil is mainly priced at 4,190-4,310 yuan/tonne in coastal areas, partially fluctuating by 10 yuan/tonne. (Tianjin 4,300-4,310, flat; Rizhao 4,260-4,270, flat; Zhangjiagang 4,240, up 10; Guangzhou 4,190, down 10; and Xiamen not offered).
Imported rapeseed oil: Imported rapeseed oil is up in price today, of which it settles up 70-100 yuan at 6,850-7,000 yuan/tonne in coastal areas. (Fujian 6,860, up 70; Guangdong 6,850, up 70; and Guangxi not offered). As it is unlikely for China and Canada to solve their conflicts in a short term, rapeseed and rapeseed oil import is still facing some obstacles, so rapeseed will get tightened before a thaw in bilateral relationship. And rapeseed oil prices will thus maintain at a high level. But the demand for rapeseed oil is subdued by its large price spread with soybean oil and palm oil, and their inventories have continued to grow. Moreover, soybean oil is piling up higher due to the huge quantity of soybeans arriving at port. Therefore, rapeseed oil market is weighed down to see limited upward space. Overall, short-term rapeseed oil market will likely fluctuate frequently at high levels, and buyers are suggested to have a good control of the positions.
Cottonseed oil: Cottonseed oil today stays stable. And some support comes from the following situations that the operation rates and output are low; cottonseed price is strong. Besides, spot soybean oil rise by 10-40 yuan/tonne. 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 6.87)
