Cottonseed: This week, operation rate in national cottonseed oil mills sees a small rise. Prices of cotton by-products are weak in climbing, while raw cottonseed price is still high with some small rises. And poor crush profits in oil mills restrict cottonseed purchase, dwindling the cottonseed stock this week. By this Friday, 62 national oil mills have 20,500 tonnes of cottonseed in stock, down 3,300 tonnes from last week’s 23,800 tonnes by 13.87%; but it sees 9,500 tonnes above last year’s 11,000 tonnes of the corresponding period by 86.36%.

    Fig. 1: Comparison for China’s Cottonseed Stocks in Recent Years

    Cottonseed oil: This week, operation rate in national cottonseed oil mills sees a small rise. The cottonseed oil is increasing in output, but slow in shipment as a blending oil, thus making the cottonseed oil stock increase slightly this week. However, cottonseed oil is lower in supply and price than in previous years, coupled with the packing-oil stockpiling underway before holidays, thus supporting its market and restricting increases in stock. By this Friday, 62 national oil mills have 5,760 tonnes of cottonseed oil in stock, up 190 tonnes from last week’s 5,570 tonnes by 3.41%; but it sees a 3,270 tonnes below last year’s 9,030 tonnes of the corresponding period by 36.21%.

    Fig. 2: Comparison for China’s Cottonseed Oil Stocks in Recent Years

    Cottonseed meal: Meals see a bullish market under continuous devaluation of RMB, constant climbing import costs of soybean and growing demands from aquaculture. Market supply of cottonseed meal is modest, so the upward pattern with fluctuations in price will remain before new cottonseed meal enters market. Besides, some downstream companies are making proper replenishment at lows, thus continuing to decrease cottonseed meal stocks this week. By this Friday, 62 national oil mills have 1,450 tonnes of cottonseed meal in stock, down 1,400 tonnes from last week’s 2,850 tonnes by 49.12%; it also sees a 4,050 tonnes below last year’s 5,500 tonnes of the corresponding period by 73.46%.

    Fig. 3: Comparison for China’s Cottonseed Meal Stocks in Recent Years