Today (Oct. 09), the market for oilseeds and oils in China is shown as follows:

 

Imported soybean: Imported soybean price sees a decline today, among which Canada soybean with 41% protein drop 20 yuan/tonne from yesterday at 4350 yuan/tonne, and Myanmar soybean is lower 10 yuan/tonne from yesterday at 4450 yuan/tonne. With the marketing of China new soybean, the ample supply and low confidence of higher offers by port traders are bearish for China's market. However, there are still some uncertainties as the Ministry of Commerce (MOC) on Tuesday said China firmly opposes the United States adding 28 Chinese entities to its "Entity List", and will also take all necessary measures to resolutely safeguard its own interests. China will soon release its own "Non-reliable Entity List". Imported soybeans for distribution likely maintain stable with weak momentum before any progress of consultations.

Cottonseed: Cottonseed prices today stop declining and stay stable with an individual rise of 0.04 yuan/kg, when the trading volume of cottonseed increases with the rising operation rate, and some Xinjiang raw cottonseed prices go up. However, the cottonseed supply increases and the freight from Xinjiang to inland is high. Thus, cottonseed market is dragged down by these factors. The market price is a little bit changeable at present, and short-term cottonseed is predicted to mainly fall back with fluctuations. Buyers can buy on immediate demand.

Summary: US soybeans rose further last night on forecasts for a snowstorm in U.S. Midwest. The U.S. Department of Commerce announced sanctions against 28 Chinese entities that were put on its so-called Entity List. In response, China said it would take all necessary measures to safeguard its own interests and could also move forward with its own list of unreliable entities. This has cast more uncertainty over this round of US-China trade negotiations. As may mills either halted for the National Day holiday or restricted production for the environmental protection in Rizhao, soybean crush declined by 36% to 1.16 mln tonnes last week. The crush is predicted to stay at a low level of only 1.30 mln tonnes this week and climb higher to 1.69 mln tonnes next week. Therefore, oil futures also continue to rise on the Dalian Commodity Exchange today. In the spot markets, soybean oil and palm oil increase by 40-80 yuan/tonne, and the trading remains tepid with only some purchases at low prices. Despite a huge drop in operation rates, soybean oil inventory still increased by 0.13% to 1.3508 mln tonnes due to slack demand after the holiday. Meanwhile, palm oil imports will also be substantial in the coming two months. The oil market is now in adequate supply, and may have limited upward space due to its fundamentals and fluctuate frequently. Buyers are suggested not to drive up prices excessively. 

 

Soybean oil: GB Grade I soybean oil is mainly priced at 5,940-6,150 yuan/tonne in domestic coastal areas, up 50-70 yuan/tonne. (Tianjin traders 5,940-5,950, Rizhao traders 6,000, Zhangjiagang traders 6,150, and Guangzhou traders 6,000-6,010). 

Palm oil: RBD palm olein is mainly priced at 4,750-4,900 yuan/tonne in coastal areas, up 60-70 yuan/tonne. (Tianjin traders 4,830-4,840, up 70; Rizhao traders 4,900, up 60; Zhangjiagang traders 4,850, up 70; Guangzhou traders 4,750, up 60; and Xiamen 4,800, up 80).

Imported rapeseed oil: Imported rapeseed oil rises in price today, of which it settles up 70-100 yuan at 7,290-7,450 yuan/tonne in coastal areas. (Fujian 7,320, up 100; Guangdong 7,290; and Guangxi 7,450, up 70). There is no sign of a thaw in relations between China and Canada, so that rapeseed supply is getting tightened. This has buoyed rapeseed oil prices to rebound sharply. However, the demand for rapeseed oil remains subdued by its big price gap with soybean oil. Meanwhile, its inventory has increased by 5.8% to 447,000 tonnes last week, and palm oil imports will also be substantial in coming two months. While the oil market is in adequate supply, the demand for oils has turned slack after the holiday. Besides, China and the US have resumed their trade negotiations. Rapeseed oil market may thus be kept in check. Buyers are suggested not to drive up prices excessively. 

Cottonseed oil: Cottonseed oil price stays stable with several declines of 20 yuan/tonne today. The cottonseed oil prices are depressed by the increasing supply due to a rise of operation rate, an off-season period for oils, as well as the limited consumption for cottonseed oil as blending oils. However, oils on DCE today continue to rise, and spot soybean oil and palm oil is up 40-80 yuan/tonne, which are positive to cottonseed oil market. Therefore, the declines of cottonseed oil prices may be limited. On the other hand, short-term cottonseed oil is likely to fall back with fluctuations continuously with the increasing operation rate, so buyers are suggested to stay on the sideline or buy on immediate demand. In addition, U.S. Commerce Department has added 28 Chinese enterprises to the “Entity List” for sanctions, and China says it will take all necessary measures to safeguard its interests and issue the “Unreliable Entity List” recently. It has brought more uncertainties to this round of Sino-US trade negotiation, and buyers can keep a close eye on new development.