Cottonseed: This week sees a slight increase in cottonseed price, despite the weak upward trend of cottonseed oil and cottonseed meal, dismal crush profits in oil mills, and lower quality of old cottonseeds than ever, as well as oil owners’ negative attitude toward purchasing those scattered washy new cottonseeds; thus cottonseed stock reduce to some extent. Until this Friday, cottonseed stock in 62 national oil mills is 20,200 tonnes, down 2,600 tonnes from last week’s 22,800 tonnes by 11.40%; but it sees an increase of 10,000 tonnes from last year’s 10,200 tonnes by 98.04% during the same period. 

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

    Cottonseed oil: This week, operation rate in cottonseed oil mills sees a pickup, yet still low, especially under a fair shipment speed over the stockpiling before the Mid-autumn Festival and National Day, so cottonseed oil stock goes down. But the reducing space is small due to its limited usage amount as a blending oil. Until this Friday, 62 national oil mills have 4,510 tonnes of cottonseed oil in stock, down 350 tonnes from last week’s 4,860 tonnes by 7.20%; and it also sees a 3,720 tonnes below last year’s 8,230 tonnes during the same period by 45.2%.

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

    Cottonseed meal: This week, cottonseed meal continues to reduce in stock due to the following factors. Market participants are inclined to support soybean meal price due to the soaring soybean import cost under ongoing trade disputes and their concerns over an inadequate fourth-quarter soybean supply. And the current supply is scarce under the peak aquaculture demand. Besides, downstream companies are active in taking delivery when the price is deemed to trend up with fluctuations before new cottonseed meal enters into market. Until this Friday, cottonseed meal stock in 62 national oil mills is 900 tonnes, down 140 tonnes from last week’s 1,310 tonnes by 31.3%; and it also falls by 4,000 tonnes from last year’s 4,900 tonnes during the same period by 81.63%. 

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