Today (Mar 23), the market for oilseeds and oils in China is shown as follows:
Oilseeds:
Imported soybean: Imported soybean supply keeps increasing at domestic ports, while the market demand remains tepid and downstream buyers are not active. These are negative to the market. Meanwhile, U.S. soybean futures are easing from the high level on improving weather in South America and on cooling export demand for U.S. soybeans, so the support from the import cost side is subdued. In the short run, imported soybean market in China is predicted to steady with a slight decline, and participants can keep an eye on imported soybean arrivals and demand in China.
Cottonseed: Cottonseed prices mainly stay stable but decline by 0.03 CNY/kg in several regions of China today. Cottonseed crushing mills keep facing losses on account of early excessive growth in cottonseed price. In this case, they are cautious in making purchases in a bid to avoid risk, and mainly fulfill previous contracts or consume inventories. Thus, cottonseed trading is limited in spot market, and traders tend to dampen the price. However, cottonseed production this year is lower than the previous year. And ginning factories in Xinjiang are mostly shut down, seeing limited availability for cottonseed in market. This has offered a support to cottonseed market. Underpinned by tight supply of cottonseed, cottonseed market will continue moving with fluctuations in a short term but the downside for its market may be restricted.
Oils:
Summary: CBOT's most-active soyoil futures contract hit the limit-up on the United States' recent green fuel push, and oils futures sharply rally on China’s Dalian Commodity Exchange today. In the spot markets, soybean oil and palm oil go up 250-300 CNY/tonne. Spot markets are in thin trade as buyers remain cautious.
BMD palm oil futures soared on Monday, as Malaysian palm oil production posted a smaller rise while exports rose 5.17-6.8% month on month in the first 20 days of March. China’s commercial soybean oil stocks further declined 2% on week to 730,000 tonnes last week, as soybean crush stayed at a low level, albeit a weekly rise of 8% to 1.56 mln tonnes. Meanwhile, port edible palm oil stocks dropped 11% on week to below 500,000 tonnes, and rapeseed oil stocks also stay low. Spot soybean oil prices go back to the mark of 10,000 CNY/tonne on bullish fundamentals. But domestic oils market could be volatile on recent swinging stock market, on auction of crude soybean oil and as soybean imports are expected to grow in the second quarter on abundant crop harvests in Brazil. Participants are suggested to remain cautious and not to chase after excessively high prices.
Soybean oil: GB Grade I soybean oil is mainly priced at 9,990-10,200 CNY/tonne in domestic coastal areas, mostly up 250-300 CNY/tonne. (Tianjin traders 9990; Rizhao traders 10000; Zhangjiagang traders 10200; and Guangzhou traders 10040).
Palm oil: RBD palm olein is mainly priced at 8,450-8,550 CNY/tonne in coastal areas, mostly up 250-300 CNY/tonne. (Tianjin traders 8550, up 270; Rizhao traders not available; Zhangjiagang traders 8450, up 250; Guangzhou traders 8470-8500, up 300; and Xiamen not available).
Rapeseed oil: U.S. soybean futures closed higher on Monday, and soybean oil hit the limit-up on the United States' recent green fuel push. And Malaysian palm oil exports in March 1-20 rose 5%-7% on month, bringing a sharp rise on 3% in BMD palm oil futures on Monday. Dalian palm olein futures lead China’s oils market today. Spot rapeseed oil prices settle up 240-260 CNY at 10,950-11,000 CNY/tonne in coastal regions in thin trading.
China’s oils supplies are not a pressure, as rapeseed oil stocks went down 8% on week to 203,000 tonnes, soybean oil down 2% to 730,000 tonnes and palm oil down 11% to 500,000 tonnes. And not a few mills will suspend soybean crush in March and April due to soybean shortages. These fundamentals are lending support to the oils market in China. Rapeseed oil market in China is predicted to strengthen at the high level in the short run.
Cottonseed oil: Cottonseed oil prices in part increase by 100 CNY/tonne in China today. CBOT most-active soyoil futures hit limit up on U.S. green energy push. Oils futures sharply rally on Dalian Commodity Exchange today. In the spot market, soybean oil and palm oil represent an increase of 250-300 CNY/tonne. For the moment, the stockpiles of palm oil and soybean oil keep falling, and rapeseed oil stocks stay at a low level likewise. Hence, oils remain bullish on fundamentals. Besides, a majority of oil plants are idled currently, which boosts cottonseed oil price. However, cottonseed oil trading is light in market due to current sluggish demand, so many factories mainly fulfill the previous contracts. It is predicted that cottonseed oil market will follow bulk oils to fluctuate in the short run but still maintain the high level on the whole.
Sunflower oil: Sunflower oil prices steady with a partial rise in China today. Grade I imported refined sunflower oil is offered at 13,000-14,300 CNY/tonne; and crude sunflower oil is 13,000 CNY/tonne.
CBOT's most-active soyoil futures contract hit the limit-up on the United States' recent green fuel push, and Dalian oils futures sharply rally today. Spot soybean oil and palm oil go up 250-300 CNY/tonne in China today. Moreover, sunflower oil import cost is still lifted by high prices in Ukraine. These are supporting sunflower oil market. But downstream buyers are choosing corn oil as a substitute due to high sunflower oil prices, which is bearish to the market. Overall, sunflower oil market is predicted to fluctuate in the short term.
Corn oil: Corn oil prices are stable with a partial decline in China today. Grade I corn oil price is 12,300-13,000 CNY/tonne, a partial decline of 200 CNY. (Shandong 12,800-13,000 CNY; Hebei no offers; Liaoning 12,300, down 200; and Sichuan no offers); and crude corn oil is offered at 10,300-11,200 CNY/tonne, a partial decline of 100 CNY. (Henan 10,300, down 100; Hebei 10,800-11,200; and Inner Mongolia no offers).
Downstream buyers are cautious after corn oil prices rise to such a high level, and corn germ prices have also been declining recently, which are affecting corn oil market. But operation rates for corn oil are falling, leading to tight supply in the market, whilst many buyers are also choosing corn oil to substitute sunflower oil. This is positive to the market. Overall, corn oil market in China is predicted to fluctuate to go down in the near term.
(USD $1=CNY ¥6.50)