Today (Jul. 19th), 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. The market is supported when the imported soybean in Tianjing port is not many; and according to USDA latest Sales Report, last week China canceled a 9,825 tonnes US soybean import amid the continuing US-China trade conflict; and US soybean import is likely to be restricted. 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, 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 stay on the sideline or take a hand-to-mouth purchasing strategy.
Oils:
Summary:U.S. soybean extended losses due to the forecast for lower temperatures in Midwest and the dismal export, especially as the concern over the African swine fever on the demand in China was triggered after China canceled nearly 10,000 tonnes of U.S. soybean contract, and oil futures also continue to decline with smaller losses on the Dalian Commodity Exchange today. In the spot markets, soybean oil and palm oil keep stable with some fluctuating by 10 yuan/tonne in tepid trading. The stockpile for small packing oil is about to start. Meanwhile, palm oil is seeing fewer cargoes arriving at ports, and there is still no progress between China and the United State as well as Canada. Therefore, mills are propping up prices. But soybean crush is expected to increase due to its huge import in the third quarter, so soybean oil inventory will stay at a high level. In addition, India is said to increase its tariff by 5% on refined palm oil import from Malaysia. Oil market is now under pressure. Overall, short-term oil spots will follow futures to fluctuate to adjust and will take a turn only after the start of the stockpile for small packing oil or the weather speculation on U.S. soybean. Buyers can wait for this round of price declines to make some tentative replenishment on the dips.
Soybean oil: GB Grade I soybean oil is mainly priced at 5,230-5,380 yuan/tonne in domestic coastal areas, some fluctuating by 10 yuan/tonne. (Tianjin 5,230-5,240, Rizhao 5,280, Zhangjiagang 5,380, and Guangzhou 5,320).
Palm oil: 24-degree palm oil is mainly priced at 4,200-4,290 yuan/tonne in coastal areas, some down by 10 yuan/tonne. (Tianjin 4,280-4,290, flat; Rizhao 4,260, flat; Zhangjiagang 4,200, down 10; Guangzhou 4,200, flat; and Xiamen not offered).
Imported rapeseed oil: Imported rapeseed oil steadily steps down today, of which it settles down partially by 10-20 yuan at 6,880-7,000 yuan/tonne in coastal areas. (Fujian 6,900, down 20; Guangdong 6,880, down 10; and Guangxi 7,000, stable). Rapeseed oil market is now confronted with bearish fundamentals. For one thing, domestic mills have bought up on rapeseed from Australia, and the demand for rapeseed oil is subject to the enlarged price spread with soybean oil and palm oil; for another, soybean oil has abundant inventory as soybean crush remains high amid huge soybean import, and palm oil is also in adequate supply. But rapeseed supply may get tightened as it is difficult for China and Canada to settle their issues in a short time, and the stockpile for small packing oil is about to start; hence, rapeseed oil will have limited price decline and will probably stay at a high level. Buyers can wait for low and stable prices to make replenishment in small batch.
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. Short-term cottonseed oil is likely to fluctuate. Buyers are suggested to take a hand-to-mouth buying strategy.
(USD $1=CNY 6.88)
