Today (Dec. 20th), the market for oilseeds and oils in China is shown as follows:
Oilseeds:
Imported soybean: Imported soybean price stays stable today, among which non-GM Canadian soybean is not offered for out of stock and the GM old soybean is unchanged at 4,050 yuan/tonne, and non-GM Russian soybean is unchanged at 3,300 yuan/tonne and the GM is not offered. But the purchase amount is still unclear. As market participants are in strong wait-and-see mood, imported soybean market is now curbed by slow shipments in distribution markets. Generally speaking, imported soybean price will likely go weak with fluctuations in distribution markets recently.
Cottonseed: Cottonseed market gets curbed, for oil mills are cautious in purchasing when there is no sign of material improvements in cottonseed by-product markets, and they also show unwillingness to power on their machines so that cottonseed demand has also reduced. But the price decline is minor due to the small volume from Xinjiang under expensive freight, especially coupled by ginning plants’ sentiment in hoarding. Overall, short-term cottonseed may decline with narrow fluctuations, and buyers can take hand-to-mouth buying.
Oils:
Summary: US soybean erased its gains to down overnight as the 3.0 Mln tonnes of soybean buying by China was lower than expected. Rapeseed oil futures slump on the Zhengzhou Commodity Exchange upon a rumor that a trader holding long position limit was forced to liquidate, and on the Dalian Commodity Exchange (DCE), soybean oil trends down after a higher open while palm oil extends its rebounds. On domestic spot markets, both soybean oil and palm oil go upward, of which soybean oil has attracted some purchases while palm oil nearly clinches no deal. Oil market has fluctuated to rebound for a decent demand at lows after the start of packing oil stockpiles in the run up to the double festivals, as well as an easing stock state after operation rate dropped for four consecutive weeks in oil mills. But oil is still in oversupply and Brazil is to market its bumper soybean harvests, so there will be little room for oils to rebound. Buyers are suggested not to force up the price excessively.
Soybean oil: GB Grade I soybean oil is mainly priced at 5,100-5,240 yuan/tonne in domestic coastal areas, up by 10-40 yuan/tonne. (Tianjin 5,110-5,120, Rizhao 5,190, Zhangjiagang 5,240, and Guangzhou 5,100-5,120).
Palm oil: 24-degree palm oil is mainly priced at 4,230-4,250 yuan/tonne in coastal areas, up 60-100 yuan/tonne. (Tianjin 4,310-4,330, up 60; Rizhao not offered; Zhangjiagang 4,400, up 100; Guangzhou 4,230-4,250, up 60; and Xiamen not offered).
Imported rapeseed oil: The price for imported rapeseed oil remains stable to down today, of which it is 6,210-6,450 yuan/tonne in coastal areas, fluctuating by 20-50 yuan/tonne. (Fujian not offered; Guangdong 6,280, down 20; and Guangxi 6,300, up 50). While Brazil is to market its bumper soybean harvests, domestic oil is still in oversupply. Moreover, Beijing and Washington will hold trade talks face to face in January after the phone call at the vice-ministerial level. Rapeseed oil market is thus dragged down. But rapeseed oil is sold well at low prices with the start of packing oil stockpiles before the double festivals. In the short term, rapeseed oil will fluctuate frequently following its futures, and buyers can wait to replenish properly after steady declines.
Cottonseed oil: Soybean oil spots go up by 20-40 yuan/tonne, and cottonseed oil is priced steadily today amid its small output and low prices, as well as the start of packing-oil stockpiles before festivals. But the overall market is still curbed by poor trading volume under limited blend amount due to supply pressure from bulk oils. By the way, China and the US have planned to hold trade talks face to face in January amid current smooth negotiating state. Without any support from practical bullish factors, short-term cottonseed oil market may still post narrow fluctuations, and buyers can provisionally take hand-to-mouth buying.
(USD $1=CNY 6.90)
