Vegoil Auction in Early March

By CnAgri2013-03-13 10:48:34 Print The state-run grain system put 100,571 MT vegoils to auction on March 8 and sold 4,992 MT of them, suggesting a close rate of 4.96%. At the auction, 88,203 MT rapeseed oil were for sale and 4,992 MT were sold at an average price of RMB10,257/MT.
 
The starting price of the vegoil auction was RMB10,200 ~ 10,400/MT. Taking into account of RMB50 ~ 200/MT refining cost and RMB200/MT warehouse fee, the cost of purchase was above RMB10,500/MT, parallel to the market price. Consequently, the auction was rather dull.
 
It is learned that 100,000 MT rapeseed oil may be put to auction next Thursday. If the starting price remains high, grain depots may have difficulty cutting stock to make room for new seeds. On the whole, the rapeseed oil auction has little impact on the market.

From “China Oil and Oilseeds Market Weekly Report”