This week (8th-14th Sept), operation rate in national cottonseed oil mills drops down, since cottonseed price sees large increases when the crush margin is unfavorable in mainland oil mills with some even cutting their production due to equipment problems, amid the end of processing in some Xinjiang oil mills. Among 136 oil mills surveyed by Cofeed, 14 oil mills are in operation (some are not in full state) this week. The stock of cottonseed crush volume in national oil mills amounts to 24,100 tonnes (cotton oil to 2,721 tonnes, cottonseed meal to 11,813 tonnes, cottonseed hull to 6,025 tonnes, and cotton linter to around 2,892 tonnes), down 9,780 tonnes against last week’s 33,880 tonnes by 28.87%; but it sees an increase of 6,250 tonnes over 17,850 tonnes of the corresponding period last year by 35.01%. (The year-on-year growth is reduced, since most oil mills in Shandong achieved environmental standards, whilst scattered new cottonseed entered into market, so some oil mills restarted their equipment production this period last year). Operation rate in cottonseed oil mills this week is 6.78%, down 2.75% from last week’s 9.53%, yet up 1.76% from 5.02% during the same period last year. And operation rate in cottonseed oil mills is predicted to go up slightly next week, since cottonseed price has some signs to fall and new cottonseed has gradually entered into market. But the operation rate will see large rises only when new cottonseed flood into market after National Day.

     Fig.1: Cottonseed Operation Rate in China (2013-2018)

     Fig. 2: Cottonseed Crush Volume Weekly in China (2015-2018)