Today (May 31st), the market for oilseeds and oils in China is shown as follows:

 

      Oilseeds:

      Imported soybean: Imported soybean price is steady today, among which Russian soybean is temporarily not offered, Kazakhstan soybean is unchanged at 4,250 yuan/tonne from yesterday, and Myanmar soybean is unchanged at 4,330 yuan/tonne from yesterday. China's soybean market is favourable on traders' optimistic outlook as the arrivals in China's ports are little, while the demand is strong. Besides, the US soybean import is restricted as uncertain outlook of U.S.-China trade talks. However, the bumper crop harvest in South America and huge global supply still curbs China's market. Short-term prices likely maintain stable with strong momentum.

      Cottonseed: Cottonseed prices today are stable due to the decreasing cottonseed quantity putting pressure on market supply and the optimistic outlook supporting traders' selling-loath mood. However, the cottonseed trading is not much as oil mills are reluctant to purchase and some mills mainly use its own stock due to the high price of cottonseed and poor crush margin. Short-term cottonseed is likely to go strong. And the upward trend of the oil meals in downstream slows down now, so does the buyers' purchase pace.

      Oils: 

      Summary: U.S. soybean has seen gains for four consecutive sessions on planting delays due to rains in Midwest, but oil futures is in choppy territory to adjust and run above the previous close on the Dalian Commodity Exchange today. Oil spot prices are broadly stable with some fluctuations of 10-20 yuan/tonne in tepid trading. Mills will maintain high utilization rate later as they have bought 9 mln tonnes of soybean for June shipment. Huge stockpiles of soybean oil and palm oil will continue to weigh down oil market. But there are some positive factors, including rising premiums of South American crops under trade frictions and growing import cost under a weaker yuan. Besides, rapeseed and its oil have seen their import blocked by tensions between China and Canada. And speculations on the U.S. soybean weather will over hand the market as there may be a sharp decline in yield and acreage under a far slower-than-normal planting pace. Therefore, oil mills are still propping up prices. Overall, short-term oil spot market is predicted to have little downside and may follow futures to post strong fluctuations. 

 

      Soybean oil: GB Grade I soybean oil is mainly priced at 5,270-5,400 yuan/tonne in domestic coastal areas, a partial fluctuation of 10-20 yuan/tonne. (Tianjin 5,270-5,280, Rizhao 5,270, and Zhangjiagang 5,400, and Guangzhou 5,350).

      Palm oil: 24-degree palm oil is mainly priced at 4,400-4,430 yuan/tonne in coastal areas, up by 10 yuan/tonne partially. (Tianjin 4,400, unchanged; Rizhao 4,430, unchanged; Zhangjiagang 4,400, unchanged; Guangzhou 4,400; and Xiamen not offered).

      Imported rapeseed oil: Imported rapeseed oil steadily goes down today, of which it settle down 10-20 yuan at 7,030-7,200 yuan/tonne in coastal areas. (Fujian 7,070, down 20; Guangdong not offered; and Guangxi 7,200, stable). Rapeseed oil has seen its demand severely cut by its enlarging spread with soybean oil and palm oil. Moreover, domestic mills will maintain high utilization rate since they have bought a total of 9 mln tonnes of soybean for June shipment. Therefore, rapeseed oil market will be dragged down by its negative fundamentals and high stockpiles of soybean oil and palm oil. But rapeseed takes on a tight supply outlook amid tensions between Beijing and Ottawa, and speculations on the U.S. soybean weather will over hand the market as there may be a sharp decline in yield and acreage under a far slower-than-normal planting pace. Overall, rapeseed oil will not slump and will probably maintain its high prices. Buyers can wait on the sidelines. 

      Cottonseed oil: Cottonseed oil today stays stable due to low operation rates and output, as well as strong cottonseed prices. However, the purchase activities are inactive as the limited cottonseed oil volume for blending, thin turnover of new orders, and high fundamental pressure in main oil market. Short-term cottonseed oil is likely to stay stable with good momentum for growth as US soybean speculation on weather will continue for the time being and there's no relief in sight for US-China trade wars.

       (USD $1=CNY 6.91)