This week (6th Oct-12th Oct), operation rate picks up at a slightly large scale in domestic cottonseed oil mills. Mainly due to the production resumption in Xiajin oil mills on 6th after their stop from October 1st to 5th during the National Day. Besides, mills in Xinjiang also gradually start for the increasing marketing of new cottonseed. Among 136 oil mills surveyed by Cofeed, 19 oil mills are in operation (some are even not in full state) this week. The stock of cottonseed crush volume in domestic oil mills amounts to 39,700 tonnes (cotton oil to 4,553 tonnes, cottonseed meal to 19,707 tonnes, cottonseed hull to 9,925 tonnes, and cotton linter to around 4,764 tonnes), up 24,000 tonnes over last week’s 15,700 tonnes by 152.87%; it is an increase of 4,780 tonnes over 34,920 tonnes of the corresponding period last year by 13.69%. Operation rate in cottonseed oil mills this week is 11.16%, up 6.75% from 4.41% last week, and down 1.34% from 9.82% of the corresponding period last year. With the increasing supply under new cottonseed sales, operation rate may still post upside trend later.

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

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