Today (May 8), the market for oilseeds and oils in China is shown as follows:
Oilseeds:
Imported soybean: Imported Argentine soybean prices still take on a weakening trend at ports today. Port soybean stocks have got a significant increase recently, and abundant crushing margins for imported soybeans on the DCE keep luring Chinese importers to make purchases. Soybean imports will be at an overwhelming level form May to July, with May at 9.87 mln tonnes and June at 10 mln tonnes, according to latest data surveyed by Cofeed. But soybean market is in weak trading now, as downstream buyers hold adequate stocks and lack of enthusiasm for buying. However, traders are still concerned about soybean shipments in Brazil as coronavirus pandemic is still severe in this country. In the near term, the market for imported soybeans is predicted to keep steady with a weakening trend.
Cottonseed: Cottonseed prices stay stable with partial rises of 0.01 CNY/kg today. The quantity of cottonseed is decreasing, and it will take a long time before the marketing of new cottonseed, which gives traders confidence to raise price. Thus, cottonseed price rises in individual regions. However, the trading in cotton by-products goes not well, so inland oil mills suffer profit losses. In addition, they reduce the operation and are wary of purchasing cottonseed. Therefore, the price of Xinjiang cottonseed is predicted to fluctuate to adjust in a short term.
Oils:
Summary: U.S. soybean futures closed sharply higher on Thursday on concerns over frosty temperatures across the U.S. agricultural belt could damage some crops and as China made corn and soybean purchases this week. Oil futures also move further higher on the Dalian Commodity Exchange today. In the spot markets, soybean oil partially fluctuates by 10-30 CNY/tonnes and palm oil mostly increases by 30-60 CNY/tonne, probably attracting some low-level purchases, but in tepid trading on the whole. While domestic oil market has entered into thinner trading for two weeks. But due to decent crushing margins, soybean imports are forecast to reach 9.87 mln tonnes in May and probably 10 mln tonnes in June, so that oil mills have rapidly picked up operation rates and soybean crush may get close to 2 mln tonnes next week; hence, soybean oil oil stocks will probably follow to rally soon. Moreover, market participants expect that April ending-stocks of palm oil may get near to 2 mln tonnes in Malaysia. Alongside bearish fundamentals, the oil market is predicted to have limited upward impetus and to swing to the weak side. Buyers can keep light stockpiles.
Soybean oil: GB Grade I soybean oil is mainly priced at 5490-5640 CNY/tonne in domestic coastal areas, partially fluctuating by 10-30 CNY/tonne. (Tianjin traders 5490-5500; Rizhao traders 5530; Zhangjiagang traders 5640; and Guangzhou traders 5580).
Palm oil: RBD palm olein is mainly priced at 4630-4860 CNY/tonne in coastal areas, mostly up 30-60 CNY/tonne. (Tianjin traders 4800-4820, up 30; Rizhao traders 4860, up 40; Zhangjiagang traders 4750, up 60; Guangzhou traders 4630, up 60; and Xiamen not available).
Imported rapeseed oil: Imported rapeseed oil prices are further higher today, of which it settles up 10-20 CNY at 7040-7170 CNY/tonne in coastal regions (Fujian 7170, up 10; Guangdong not available; and Guangxi 7040). As there is not a timetable for China and Canada to see a thaw, rapeseed has a tight supply outlook and thus remains low crush in China. With a backlog of contracts to fulfill in hand and out of spot goods, oil mills now are busy making delivery with existing stocks. Both give support to the market. However, Chinese importers have been scooping up on South American soybeans at a brisk pace due to handsome crushing margins, so that monthly soybean arrivals are forecast tog get near to 10 mln tonnes from May to July. Given this, oil mills will probably pick up soybean crush to near 2 mln tonnes next week, and soybean oil stocks will follow to rally. Meanwhile, he demand in catering industry at home has not resumed to normal, and low crude oil prices have also subdued the demand for biofuels. Overall, rapeseed oil market is predicted to follow futures to swing in the short run and remain not optimistic in the mid-to-long term. Buyers are suggested to remain cautious in chasing after higher prices.
Cottonseed oil: Cottonseed oil prices are mainly stable but down 50 CNY/tonne in some regions today. The arrival of imported soybeans will reach 9.87 mln tonnes in May and likely be as high as 10 mln tonnes in June. With a sharp rise of operation rate in soyoil crushing mills, soybean crush is projected to close to 2 mln tonnes next week, so that soybean oil stocks may stop declining and start rising. Besides, market expects that Malaysian palm oil stocks in late April may reach a high level of 2 mln tonnes. Thus, this is bearish for bulk oils fundamentals, dragging down cottonseed oil trading. But less inventory of cottonseed coupled with rising freight, push the delivered price of Xinjiang cottonseed higher. Moreover, the operation rate among inland oil mills is low, and crushing plants in Xinjiang have many outstanding contracts. And oils on DCE go up today. Accordingly, cottonseed oil market is bolstered by these factors. But the weak trend of bulk oils would not change in the near term and trend of cottonseed oil has yet to be optimistic, so buyers can buy on immediate demand.
(USD $1=CNY ￥7.08)
