Today (Jul. 16th), the market for oilseeds and oils in China is shown as follows:
Oilseeds:
Imported soybean: Imported soybean price is flat with a rise today, among which Brazilian soybean in bulk is up 40 yuan/tonne from yesterday to settle at 3,430 yuan/tonne , and Russian soybean is unchanged from yesterday to settle at 4,170 yuan/tonne. The insufficient supply of imported and distributed soybean in Tianjin port is supportive of prices. However, it's off-season period for soybean demand and the delivery pace is slow. 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. The market is mixed and short-term prices likely maintain stable.
Cottonseed: Cottonseed prices today are partially stable 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.
Oils:
Summary: U.S. soybean turned lower on the forecast for rains that would ease the hot and dry weather in the planting regions, and oil futures also snap off gains to fall on the Dalian Commodity Exchange today. In the spot markets, soybean oil mostly stays stable with some declines of 10-50 yuan/tonne, and palm oil mostly goes down by 10-30 yuan/tonne with tepid trading. As soybean import is huge in the third quarter, soybean crush will probably return to 1.65 mln tonnes next week since soybean meal may see lower stockpiles in quick deliveries with this round of price bounces. The market sentiment is somewhat shaken by a slight increase in soybean oil inventory to 1.44 mln tonnes, so domestic oil futures post losses today. But mills are maintaining low utilization rate at present, and the stockpiles for packing oil will gradually take off next week. Besides, palm oil inventory has declined by 5% weekly to 642,500 tonnes with fewer cargoes arriving at ports. Therefore, there will be limited downside space for oil market. In a hybrid of the bull and the bear, short-term oil market will continue to follow futures to edge up in fluctuation, and buyers can wait for low and stable prices to make appropriate replenishment on the dips.
Soybean oil: GB Grade I soybean oil is mainly priced at 5,250-5,400 yuan/tonne in domestic coastal areas, some down by 10-50 yuan/tonne. (Tianjin 5,250-5,260, Rizhao 5,290, Zhangjiagang 5,400, and Guangzhou 5,330).
Palm oil: 24-degree palm oil is mainly priced at 4,240-4,310 yuan/tonne in coastal areas, down by 10-30 yuan/tonne. (Tianjin 4,300-4,310, down 10; Rizhao 4,300, down 20; Zhangjiagang 4,220, down 30; Guangzhou 4,240, down 20; and Xiamen not offered).
Imported rapeseed oil: Imported rapeseed oil steadily rises in price today, of which it settles up 10-20 yuan at 6,880-6,980 yuan/tonne in coastal areas. (Fujian 6,890, up 20; Guangdong 6,880; 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, 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 fluctuate frequently at high levels, 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, a busy season for restocking of small-packing oils is coming. However, the price increase is curbed by the limited consumption for cottonseed oil as blending oils, and high fundamental pressure in staple oil market. Besides, oils on DCE see stagflation and correction today, with some spot soybean oil declining 10-50 yuan/tonne. Short-term cottonseed oil is likely to fluctuate greatly. Buyers may make small replenishment upon low prices.
(USD $1=CNY 6.87)
