Cottonseed: This week, operating rate in cottonseed oil mills got a slight rise, but overall cotton by-product market was inactive, due to dismal profits in crush and crippling interests in cottonseed purchasing (mostly on-demand procurement), thus reducing the stocks of cottonseed this week sharply. By this Friday, cottonseed stocks in 62 China’s cottonseed oil mills were around 13,300 tonnes, down 8,900 tonnes over 22,200 tonnes last week, with a reduction of 40.09%; the stocks rose 700 tonnes over last year’s 12,600 tonnes at the same period, with an increase of 5.56%.
Fig. 1:Comparison for China’s Cottonseed Stocks in Recent Years
Cottonseed oil: With the deliveries of cottonseed oil in some preliminary contracts, its stocks decreased this week, but operating rate in cottonseed oil mills still got a slight rise. Besides, the low turnover upon new orders as a whole also limited the reduction of its stocks. By this Friday, cottonseed oil stocks in 62 China’s mills were 7,100 tonnes, down 400 tonnes over last week’s 7,500 tonnes, with a reduction of 5.33%; the stocks decreased 3,830 tonnes over last year’s 10,930 tonnes at the same period, with a reduction of 35.04%.
Fig. 2: Comparison for China’s Cottonseed Oil Stocks in Recent Years
Cottonseed meal: The devaluation of RMB has contributed to continuous increasing costs in soybean imports. With US soybean entering its weather speculations period, under rising temperature as well as increasing demands in aquaculture, the insiders are expecting an active after market of meal, with some downstream buyers making moderate replenishment at a low price. The deliveries of cottonseed meals in some preliminary contracts also decreased the stocks of cottonseed meals on a large scale this week. By this Friday, stocks of cottonseed meal in 62 China’s oil mills were 3,940 tonnes, down 2,600 tonnes over 6,540 tonnes last week, with a reduction of 39.76%; the stocks reduced 3,780 tonnes over last year’s 7,720 tonnes at the same period, with a reduction of 48.96%.
Fig. 3: Comparison for China’s Cottonseed Meal Stocks in Recent Years
