Today (Jul. 17th), 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 Brazilian selected soybean for food is 3,850 yuan/tonne, and Russian soybean is at 4,150 yuan/tonne, down 20 from yesterday. The imported and distributed soybeans in Tianjin port are not many. According to Bloomberg, Trump added pressure on China again, saying more tariffs could be place on Chinese goods. US soybeans in the short run will be restricted amid uncertainty of U.S.-China trade relationship, which is supportive of market. However, the market is still under the negative situations that it's off-season period and the soybean supply globally is ample. 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. soybeans extended losses in overnight trading as the favorable rain in the U.S. Midwest was expected to cope with dry crop conditions, and oil futures extend moderate losses on the Dalian Commodity Exchange today. In the spot markets, soybean oil and palm oil slip by 10-30 yuan/tonne in tepid trading. The utilization rate for soybean crush is expected to pick up due to huge soybean import and busy soybean meal delivery recently, but soybean oil market has become quiet again this week after two-week of fair trading; thus, soybean oil market continues to move down. But mills have maintained low utilization rate now and the stockpile for small packing-oil is to start gradually next week. Moreover, palm oil inventory has declined by 5% to 640,000 tonnes with fewer cargoes bought. And there is still huge uncertainties in U.S.-China trade talks, whilst rapeseed and rapeseed oil import is still blocked by rocky relationship between China and Canada. Therefore, oil market will see limited space for price declines. Overall, short-term oil market will probably follow futures to go strong in fluctuation, and buyers can wait for low and stable prices to make proper 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, down by 10-30 yuan/tonne. (Tianjin 5,240-5,250, Rizhao 5,280, Zhangjiagang 5,380-5,390, and Guangzhou 5,310).
Palm oil: 24-degree palm oil is mainly priced at 4,220-4,300 yuan/tonne in coastal areas, mostly down by 10-20 yuan/tonne. (Tianjin 4,290-4,300, down 10; Rizhao 4,280-4,290, down 20; Zhangjiagang 4,220, flat; Guangzhou 4,220, 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 6,910-7,000 yuan/tonne in coastal areas. (Fujian 6,920, up 20; Guangdong 6,890, up 10; and Guangxi 7,000, up 20). Rapeseed supply will get tightened in the second half of July as there is no sign of a thaw between China and Canada; hence, rapeseed oil market will be boosted. But the demand for rapeseed oil is depressed by its widened price gap with soybean oil and palm oil. And soybean oil and palm oil has been increasing, especially the former, for soybean crush is expected to stay at a high level with huge soybean supply. Therefore, rapeseed oil market is weighed down to have limited rises. Overall, short-term rapeseed oil may fluctuate frequently at high levels and buyers can keep light stockpiles.
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, 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 further mildly fall back today, with some spot soybean oil and palm oil declining 10-30 yuan/tonne. Short-term cottonseed oil is likely to fluctuate greatly.
Buyers may make small replenishment upon low prices.
(USD $1=CNY 6.88)
