Today (Jul. 8th), 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 last Friday, and Russian soybean is unchanged at 4,230 yuan/tonne from last Friday. The stable quotations from traders is supportive to China's soybean market amid rigid demands and insufficient supply of imported and distributed soybean. However, China's market is also restricted by ample supply globally when the US soybean imports in the future may increase amid the relief of US-China trade tension and according to USDA's weekly export sales report, last week 600,000 tonnes US soybeans are sold to China. Besides, South America soybean crop harvest is bumper. Short-term prices likely maintain stable.
Cottonseed: Cottonseed prices today are partially lower 0.02-0.04 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 closed to hit a three-week low last Friday due to improved weather conditions and huge supply, but oil futures fluctuate to climb higher on the Dalian Commodity Exchange today, as soybean oil inventory has declined sharply by 3% to 1.437 mln tonnes after soybean crush dropped by 18% to 1.41 mln tonnes. In the physicals, soybean oil and palm oil increase by 10-30 yuan/tonne to attract some low-level purchases, but fewer at high levels. As its fundamentals have turned a bit better, coupled by the start of packing-oil stockpiles in one or two weeks, oil mills are active in lifting prices, and thus raising the basis. Hence, short-term oil market will probably stay stable to consolidate. But soybean import may reach a total of 29 mln tonnes in the thrid quarter, and importers are also buying up on lucrative palm oil, so oil market will have restricted rebound space, and may fluctuate frequently. Buyers need to control the pace of buying and selling, and can make appropriate on the dips.
Soybean oil: GB Grade I soybean oil is mainly priced at 5,200-5,370 yuan/tonne in domestic coastal areas, up by 10-40 yuan/tonne. (Tianjin 5,230-5,240, Rizhao 5,280, Zhangjiagang 5,380, and Guangzhou 5,310).
Palm oil: 24-degree palm oil is mainly priced at 4,230-4,320 yuan/tonne in coastal areas, some up by 10-30 yuan/tonne. (Tianjin 4,310-4,320, flat; Rizhao 4,300, up 20; Zhangjiagang 4,250, up 10; Guangzhou 4,230, up 10; and Xiamen not offered).
Imported rapeseed oil: Imported rapeseed oil declines in price today, of which it settles down 10-20 yuan at 6,850-6,950 yuan/tonne in coastal areas. (Fujian 6,860, down 10; Guangdong 6,850, down 10; and Guangxi not offered). The demand for rapeseed oil has suffered a cut due to its huge price gap with soybean oil and palm oil, and its inventory has thus increased fractionally to 538,000 tonnes last week. Moreover, soybean crush will stay at a high level because of its large import in the third quarter. Therefore, growing inventories of soybean oil and palm oil will jointly drag down rapeseed oil market. But it is still uncertain about the trade talks between China and the United States and it is also difficult to solve conflicts between China and Canada in a short time, so rapeseed import is decreasing and its supply will get tightened in the second half of July. Overall, rapeseed oil will not collapse and will maintain at a high level, and buyers can keep light stockpiles.
Cottonseed oil: Cottonseed oil today stays stable with a rise of 50 yuan/tonne for some prices. And some support comes from the following situations that the operation rates and output are low; cottonseed price is strong. Besides, oils on DCE soybean oil go up with fluctuation, and spot soybean oil and palm oil see a rise of 10-30 yuan/tonne and a busy season for restocking of small-packing oils is coming. 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 take a hand-to-mouth purchasing strategy.
(USD $1=CNY 6.89)
