Today (Jul. 23rd), 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 no specific news of US soybean purchase has been released for now amid an uncertainty over US-China trade talks , 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 partially stable with most purchase activities suspending, due to the declining supply of cottonseed, and a certain period before the marketing of new cottonseed. However, the cottonseed is weighted on because 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. Short-term price is likely to stay stable with fluctuation in narrow range and buyers can stay on the sideline or take a hand-to-mouth purchasing strategy.
Oils:
Summary: U.S. soybean futures were lower on Monday as forecasts of cooler weather across the U.S. Midwest eased fears about potential yield losses, but oil futures extend slight gains on the Dalian Commodity Exchange today as traders are taking the arbitrage of buying oils and selling meals after China was said to set a quota of over 3.0 mln tonnes of U.S. soybean imports free of the additional tariff. In the spot market, soybean oil and palm oil steadily go up by 10-20 yuan/tonne to attract low-level purchases, but the total trading volume remains low. Oil prices have been buoyed by the forthcoming peak season for small packing oil stockpile in the run-up to the festival. Nevertheless, soybean oil inventory has increased by 1.2% to 1.46 mln tonnes due to slow deliveries under poor demand, whilst soybean crush will return to 1.64 mln tonnes and 1.82 mln tonnes in the next two weeks due to eased swelling soybean meal inventory under accelerated deliveries. And palm oil will enter into the peak production in Malaysia. Therefore, oil market is cracked down by heavy supply pressure to have limited rebounds. Overall, short-term oil spots may follow futures to fluctuate frequently, and buyers are suggested to wait for low and stable prices to replenish properly and not to chase up price excessively.
Soybean oil: GB Grade I soybean oil is mainly priced at 5,230-5,380 yuan/tonne in domestic coastal areas, some up by 10-20 yuan/tonne. (Tianjin 5,250-5,260, Rizhao 5,300, Zhangjiagang 5,400, and Guangzhou 5,360).
Palm oil: 24-degree palm oil is mainly priced at 4,240-4,340 yuan/tonne in coastal areas, partially up by 10 yuan/tonne. (Tianjin 4,290-4,300, flat; Rizhao 4,340, up 10; Zhangjiagang 4,230, flat; Guangzhou 4,240, up 10; and Xiamen not offered).
Imported rapeseed oil: Imported rapeseed oil steadily edges higher today, of which it settles up partially by 10-20 yuan at 6,920-7,020 yuan/tonne in coastal areas. (Fujian not offered; Guangdong 6,920, up 20; and Guangxi 7,020, up 20). China and the United States still have a long way to go in terms of trade talks, and there is also a lack of practical improvement in relationship between China and Canada. Rapeseed supply will get tightened later, whilst the peak season for the stockpile for packing oil is coming. Therefore, rapeseed oil market has received some support. However, soybean oil inventory has increased by 1.2% weekly to come near at 1.46 mln tonnes and palm oil inventory has also grown by 2.2% weekly to 660,000 tonnes. And this is a curb on the market. Overall, short-term rapeseed oil may fluctuate frequently at the high level, 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; a busy season for restocking of small-packing oils is coming; and today oils on DCE have a further uptick, and spot soybean oil and palm oil are stable with a rise of 10-20 yuan/tonne. However, the market is negative on 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 in narrow range. Buyers are suggested to take a hand-to-mouth buying strategy.
(USD $1=CNY 6.88)
