Domestic Oil Seeds Launched into the Market Successively, Price to Go Down Gradually from High Level

By CnAgri2017-10-12 10:28:52 Print In September, the harvest time arrived for the new domestic soybeans, peanuts and sesame seeds but the present volumes in the market were limited. According to the situation of traders’ demands and the demands downstream, a general weak downturn might occur in the oil seed market in later period.  
 
a. The soybean price might drop and a long-term downturn might remain. On the one hand, as the cultivated area recovered significantly, the output increased. Great volumes of oil seeds in the market might bring certain supply pressure. On the other hand, the impact of the temporary soybean auctions and the low-priced imported soybeans. The present market quotes were 3,800 RMB/MT to 3,900 RMB/MT, which appeared to be basically at the same levels as the same period last year. However, the sales and purchases were light. Due to the present market situation, the domestic soybeans didn’t have the full competitive advantage. Therefore, traders mostly took a wait and see attitude and didn’t do the purchasing actively due to worries about the price decline.
 
b. The overall peanut market prices to be found higher in the beginning and lower in the end. At present, peanut volumes increased slightly in the market of the producing areas. However, due to the water content and quality, plus farmers were reluctant to sell, the market transactions were flat. As purchasers mostly did on-demand procurement, the price dropped compared with the previous period. At present, the peanut prices in the regions such as Henan, Shandong and Hebei were between 6,500 RMB/MT and 7,000 RMB/MT. The prices in Hubei and Jiangxi were mostly between 7,200 RMB/MT and 7,400 RMB/MT. The prices of the new peanuts from Henan were between 7,600 RMB/MT and 8,000 RMB/MT in Guangdong and Guangxi. All of the prices were 300 RMB/MT lower than the price found in the beginning of September. 
 
c. The general sesame seed price rose recently but the price would stop rising and drop in later period. Recently, the sesame seed volumes launched in the market remained limited due to continuous rainfalls. Also, as the imported sesame seed inventories kept dropping at port, traders and enterprises downstream were more active in increasing their inventories. As a result, the sesame seed prices went up. The present loading price of the sesame seeds for oil purposes in Hubei and Hunan were between 10,100 RMB/MT and 10,600 RMB/MT. The first grade imported sesame seed prices were between 9,400 RMB/MT and 9,600 RMB/MT at port, which were 200 RMB/MT to 400 RMB/MT more than the beginning of September. As the new sesame seeds would be launched into the market successively in the main African countries, the inventories at port would pick up quickly due to the continuous import. As a result, the domestic sesame seed prices would be continually suppressed by the low-priced imported sesame seeds.