Cottonseed: This week, operation rate in cottonseed oil mills sees a small decline, but cottonseed stocks increase due to the slightly rising prices of cotton by-products, increasing crush profits in oil mills, and oil mills’ starting to replenish their less and less cottonseed stocks. By this Friday, China’s 62 cottonseed oil mills amount to 18,200 tonnes in stock, increasing 4,900 tonnes over last week’s 13,300 tonnes by 36.84%; it increases 7,000 tonnes over 11,200 tonnes at the same period last year by 62.5%.
Fig. 1: Comparison for China’s Cottonseed Stocks in Recent Years
Cottonseed oil: This week, due to the slight declining operation rate in cottonseed oil mills, the bullish China’s oil market created by escalating trade war and the relatively low oil price in recent year, oil mills are inclined to lift the price. Downstream companies, encouraged by the idea of “buying up”, are more active in purchasing, so cottonseed oil stocks decrease this week. But the declining scale is small due to dismal demands and slow deliveries of cottonseed oil. By this Friday, cottonseed oil in 62 mills are 6,920 tonnes in stock, decreasing 180 tonnes over last week’s 7,100 tonnes by 2.54%; it has fallen 3,210 tonnes over 10,130 tonnes at the same period last year by 31.69%.
Fig. 2: Comparison for China’s Cottonseed Oil Stocks in Recent Years
Cottonseed meal: The devaluation of RMB has increased the cost of soybean imports, which is also aggravated by frequent weather speculations on US soybean. As temperature scorches and demands increase in aquaculture, the participants expect a bullish later meal market, and some downstream companies replenish on the dips. This week, cottonseed meal stocks continue to decrease but at a slower pace, since the cottonseed meal production volume is limited by low operation rate. By this Friday, stocks in 62 China’s cottonseed oil mills are 3,660 tonnes, decreasing 280 tonnes over last week’s 3,940 tonnes by 7.11%, and down 3,460 tonnes over 7,120 tonnes this period last year by 48.6%.
Fig. 3: Comparison for China’s Cottonseed Meal Stocks in Recent Years
