Today (Jul. 15th), 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 4,370 yuan/tonne from last Friday, and Russian soybean is unchanged at 4,170 yuan/tonne from last Friday. Imported and distributed soybean market is negative due to the insufficient confidence of traders on higher offers during the off-season period. Besides, the imported soybeans later are likely to increase when the soybean supply globally is ample, and more US soybeans may be imported into China as Trump said the trade talks resumes.
Short-term prices likely maintain stable with weak momentum.
Cottonseed: Cottonseed prices today are flat and partially up 0.04 yuan/kg with most purchase activities suspending, due to the reducing supply of cottonseed. However, cottonseed market is weighted on when operation rate and purchase activity are lower; some mills mainly use its own stock and quantity of cottonseed trading is not a lot; and delivery for both cottonseed oil and meal is not good. Short-term prices are likely to fluctuate in narrow range and buyers are suggested to make proper purchase upon low prices amid some signs of improvement for oil and meal market.
Oils:
Summary: U.S. soybean futures extended gains last Friday night Soybean crops might gasp as the forecast called for higher-than-normal temperatures along with lower-than-normal rainfalls in the Midwest, and oil futures move higher moderately on the Dalian Commodity Exchange today. On the spot markets, soybean oil and palm oil go up by 10-50 yuan/tonnes to attract some low-level purchases, but the total trading volume remains lukewarm. Soybean crush has increased by 7.8% to 1.52 mln tonnes last week and may fall again to 1.48 mln tonnes this week, so soybean oil inventory has hovered around 1.44 mln tonnes amid such a low crush level. And palm oil inventory might have declined by 40,000-50,000 tonnes weekly to 640,000 tonnes. Therefore, oil market is heading up moderately today. But soybean import is so huge that mills may increase the crush to 1.65 mln tonnes next week as soybean meal is better trading due to its price bounces. Therefore, the spot market will have limited upward space. Overall, short-term oil market may keep strong in fluctuation, and buyers can replenish on the dips and remain cautious in chasing up prices.
Soybean oil: GB Grade I soybean oil is mainly priced at 5,250-5,420 yuan/tonne in domestic coastal areas, mostly up by 10-40 yuan/tonne. (Tianjin 5,250-5,260, Rizhao 5,280, Zhangjiagang 5,420, and Guangzhou 5,330).
Palm oil: 24-degree palm oil is mainly priced at 4,230-4,300 yuan/tonne in coastal areas, up by 20-50 yuan/tonne. (Tianjin 4,290-4,300, up 30; Rizhao 4,320, up 50; Zhangjiagang 4,220, up 20; Guangzhou 4,230, up 40; and Xiamen not offered).
Imported rapeseed oil: Imported rapeseed oil rises in price today, of which it settles up 20-50 yuan at 6,860-6,960 yuan/tonne in coastal areas. (Fujian 6,860, up 50; Guangdong not offered; and Guangxi not offered). Rapeseed supply will get tightened before a thaw between China and Canada since rapeseed and its oil import is still interrupted by bilateral issues. Moreover, rapeseed oil inventory has declined by 5.1% to 510,000 tonnes last week, and the stockpiles for packing oil is expected to start from this week. These may jointly shore up rapeseed oil market. But the demand for rapeseed oil is subject to its enlarged price spread with soybean oil and palm oil. And soybean oil inventory will keep increasing due to huge soybean import, so will palm oil inventory. Therefore, rapeseed oil market is weighed down to have limited upward potential. Overall, short-term rapeseed oil may rebound moderately in fluctuation, and buyers can replenish properly on the dips and remain cautious in chasing up prices.
Cottonseed oil: Cottonseed oil today stays stable with a rise of 50 yuan/tonne. 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 experience a mild rise, and spot soybean oil goes u by 10-50 yuan/tonne. However, price increase of cottonseed oil is restricted by the limited consumption for cottonseed oil as blending oils, and high fundamental pressure in staple oil market. Short-term cottonseed oil is likely to fluctuate greatly and buyers may make proper replenishment upon low prices.
(USD $1=CNY 6.88)
