Today (Jul. 9th), the market for oilseeds and oils in China is shown as follows:
Oilseeds:
Imported soybean: Imported soybean price is steady with a drop today, among which Kazakhstan soybean is unchanged at 4,470 yuan/tonne from yesterday, and Russian soybean is at 4,170 yuan/tonne, down 60 from yesterday. The negative factors are the weakening of market demand, the slowing of dealers' delivery in ports, and the falling of the sentiment for high offers. Moreover, China's market is also restricted by ample supply globally when South America soybean crop harvest is bumper, and the US soybean imports in the future may increase amid the relief of US-China trade tension. Short-term prices likely maintain stable with weak momentum.
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 rose on slow planting and low good-to-excellent rating, and on the Dalian Commodity Exchange today, soybean oil edges higher, but palm oil inches down on weak demand and growing domestic stockpiles. In the spot market, soybean oil goes up by 10-40 yuan/tonne, but palm oil down by 10 yuan/tonne. There are some low-level purchases, but the total trading remains tepid. Soybean crush declined sharply by 19% to 1.41 mln tonnes last week due to swelling soybean meal stockpiles, soybean oil inventory thus dropped by 3% to 1.437 mln tonnes. And mills are now propping up prices as packing-oil stockpiles will gradually start in the second half of this month. Therefore, short-term oil market will maintain its strong trend. But soybean import is estimated at around 29 mln tonnes in the third quarter, and importers are buying up on lucrative palm oil, which will continue to depress price rises and may lead to frequent fluctuations. Buyers can make proper replenishment on the dips, but not drive up prices excessively.
Soybean oil: GB Grade I soybean oil is mainly priced at 5,260-5,410 yuan/tonne in domestic coastal areas, up by 10-40 yuan/tonne. (Tianjin 5,260-5,270, Rizhao 5,290, Zhangjiagang 5,410, and Guangzhou 5,320).
Palm oil: 24-degree palm oil is mainly priced at 4,210-4,300 yuan/tonne in coastal areas, mostly down by 10 yuan/tonne. (Tianjin 4,300, down 10; Rizhao 4,290, down 10; Zhangjiagang 4,240, down 10; Guangzhou 4,210, down 10; and Xiamen not offered).
Imported rapeseed oil: Imported rapeseed oil declines in price today, of which it settles down 10-20 yuan at 6,830-6,950 yuan/tonne in coastal areas. (Fujian 6,840, down 20; Guangdong 6,830, down 20; and Guangxi not offered). Rapeseed oil market has few buyers now as its demand is cut by its large price gap with soybean oil and palm oil. Besides, soybean import is estimated at around 29 mln tonnes in the third quarter, and importers are buying up on lucrative palm oil, so they are both in adequate inventories. As a result, rapeseed oil market turns bearish due to such fundamentals. But it is difficult for China and Canada to enter into a thaw in a short term, so rapeseed supply may get tightened later, coupled with the start of small-packing oil stockpiles, so rapeseed oil market may have limited declines to stay at the high level. Buyers can wait for low and stable prices to buy in small batch on the dips.
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; and a busy season for restocking of small-packing oils approaches. Besides, today soybean oil on DCE slightly go up, and 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 6.88)
