Today (Jul. 18th), the market for oilseeds and oils in China is shown as follows:
Oilseeds:
Imported soybean: Imported soybean price is steady today, among which Brazilian selected soybean for food is unchanged from yesterday at 3,850 yuan/tonne, and Russian soybean is at 4,150 yuan/tonne, unchanged from yesterday. As the imported soybean in Tianjing port, and there is uncertainty over US-China trade relationship amid the suspension of trade talks due to the Huawei issue, US soybean import in short run is likely to be restricted, 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 flat and partially down 0.02 yuan/kg with most purchase activities suspending, when the cottonseed trading is not much as oil mills are reluctant to purchase and some mills mainly use its own stock due to poor crush margin. However, the downward potential is curbed by the declining supply of cottonseed. Short-term price is likely to fluctuate in narrow range and buyers can make proper purchase upon low prices.
Oils:
Summary: U.S. soybean extended losses overnight on the forecast for lower temperatures to help soybean growth next week, and oil futures continue to post moderate losses on the Dalian Commodity Exchange today. In the spot market, soybean oil and palm oil drop by 10-20 yuan/tonne in tepid trading. Traders are rush to buying meals and selling oils as Donald Trump made negative comments on U.S.-China trade talks, so that domestic oils continue to drop. On the contrary, soybean meal is in quick delivery amid hot trading. Meanwhile, soybean crush is expected to rise with huge soybean import in the third quarter, but soybean oil inventory will quicken its growth amid increasing output and slow shipments. Short-term oil market may follow futures to fluctuate to adjust. But small-packing oil stockpiles will gradually get started late this month, and palm oil arrivals have also been reducing. Meanwhile, there is no progress in U.S-China trade talks, and rapeseed and its oil import is also blocked by the pending issues between China and Canada. Therefore, oil market is predicted to have limited downside space. Buyers can make proper replenishment after this round of price declines.
Soybean oil: GB Grade I soybean oil is mainly priced at 5,230-5,380 yuan/tonne in domestic coastal areas, down by 10 yuan/tonne. (Tianjin 5,230-5,240, Rizhao 5,270, Zhangjiagang 5,380, and Guangzhou 5,300).
Palm oil: 24-degree palm oil is mainly priced at 4,200-4,290 yuan/tonne in coastal areas, mostly down by 10-20 yuan/tonne. (Tianjin 4,280-4,290, down 10; Rizhao 4,260, down 20; Zhangjiagang 4,210, down 10; Guangzhou 4,200, down 20; and Xiamen not offered).
Imported rapeseed oil: Imported rapeseed oil stays stable in price today, of which it settles at 6,910-7,000 yuan/tonne in coastal areas. (Fujian 6,920, stable; Guangdong 6,890, stable; and Guangxi 7,000, stable). Rapeseed supply will get tightened before a thaw between China and Canada as the import of rapeseed and rapeseed oil is still blocked. Moreover, packing oil stockpiles are to gradually get started late this month. Therefore, rapeseed oil prices still stay at high levels. But its demand is subject to its widen price gap with soybean oil and palm oil, and soybean import is predicted to hit 28 mln tonnes in the third quarter. Rapeseed oil market is thus dragged down to have limited rises. Overall, short-term rapeseed oil is expected to fluctuate frequently at high levels and buyers can keep light inventory.
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 see a mild drop today, with some spot soybean oil down 10-20 yuan/tonne. Short-term cottonseed oil is likely to fluctuate greatly. Buyers may make small replenishment upon low prices.
(USD $1=CNY 6.88)
