Today (Oct. 23), the market for oilseeds and oils in China is shown as follows:

 

Imported soybean: Imported soybeans are priced lower today, among which Canada soybean with 41% protein drops by 20 yuan/tonne from yesterday to 3,980 yuan/tonne, and Ukraine soybean goes down by 70 yuan/tonne from yesterday to 3,400 yuan/tonne. Imported soybean market gets weighed down by the adequate supply of Chinese soybeans. And a report said that China offered its state-owned crushers, privately owned crushers and foreign-owned crushers a quota of 10 mln tonnes free of additional tariffs to import US soybeans. In this case, US soybean imports will increase before long, which will add further pressure to domestic market supply. Port traders are not optimistic about the future trend, which is bearish to domestic market. The distribution market for imported soybeans will likely stay stable with a weakening trend in the short term.  

Cottonseed: Cottonseed prices stay stable with some rises of 0.02 yuan/kg. Oil mills start planning to stockpile cottonseed, and the trading volume increases. Besides, there is not much North Xinjiang cottonseed, and South Xinjiang cottonseed has not gone marketing in huge quantity yet, so some ginning mills are reluctant to sale at current level. Hence, cottonseed market is supported by these factors. But the increasing supply of cottonseed also limits price upward space. Therefore, short-term price probably rebounds fractionally. Buyers can make replenishment on the dips.

Summary: US soybeans rose last night, as China offered its state-owned crushers, privately owned crushers and foreign-owned crushers a quota for 10 mln tonnes free of additional tariffs to import US soybeans. And oil futures also snap off declines to move higher on the Dalian Commodity Exchange on the arbitrage of buying oils and selling meals. In the spot markets, soybean oil increases by 70-100 yuan/tonne, and palm oil by 80-120 yuan/tonne, and buyers make no large purchases due to further price rises. Mills now have a backlog of contracts to be completed in November and December as soybean oil has good low-level trading recently, and they are also calling for higher prices, for buyers will likely to get down to make preparations for the New Year’s Day and the Spring Festival from late November. But mills have begun to raise their capacity utilization sharply since last week because monthly soybean imports are expected to exceed 8 mln tonnes in both November and December. Moreover, DCE crush margins for soybeans from South America and US PNW have rallied to 240-270 yuan/tonne, and there are short covering for higher import margins in Argentine soybean oil, which has become a key factor to impact the upward impetus of the oil market. Short-term oil market will maintain its strengthening trend in fluctuation and move high from the bottom with frequent fluctuations. Buyers must control the pace of buying and selling and not to chase after excessively higher prices.

Soybean oil: GB Grade I soybean oil is mainly priced at 6,180-6,250 yuan/tonne in domestic coastal areas, up 70-100 yuan/tonne. (Tianjin traders 6,180-6,190, Rizhao traders 6,220, Zhangjiagang traders 6,250, and Guangzhou traders 6,250). 

Palm oil: RBD palm olein is mainly priced at 4,890-5,080 yuan/tonne in coastal areas, up 80-120 yuan/tonne. (Tianjin traders5,010-5,020, up 110; Rizhao traders 5,050, up 120; Zhangjiagang traders 5,000, up 120; Guangzhou traders 4,890, up 90; and Xiamen 4,950, up 100).

Imported rapeseed oil: Imported rapeseed oil rises in price today, of which it settles up 30-50 yuan/tonne at 7,270-7,420 yuan/tonne in coastal areas. (Fujian yet offered; Guangdong yet offered; and Guangxi 7,420, up 20). Rapeseed supply looks tight in China now due to its unsettled issues with Canada, and this is supporting rapeseed oil prices. But the demand for rapeseed oil is affected by its price gap with soybean oil. Moreover, China is buying up on US soybeans, lifting the monthly imports to go above 8 mln tonnes in both November and December. And domestic oil market is also in adequate supply. Overall, rapeseed oil will have limited upward impetus and will keep range-bound and choppy at the high level. Buyers are suggested not to chase after excessively high prices. 

Cottonseed oil: Cottonseed oil prices stay stable with a rise of 50-100 yuan/tonne. The trading situation of oils is better than expected after National Day. And China offers tariff-free quota for 10 mln tonnes of imported U.S. soybeans to state-owned crushers, privately owned crushers and foreign capital crushers. As a result, U.S. Soybeans rose yesterday. Besides, oils on DCE today stop falling and move higher on arbitrage of buying oils and selling meals. Spot soybean oil up by 70-100 yuan/tonne, and spot palm oil up by 80-120 yuan/tonne. Therefore, cottonseed oil market is buoyed by all these factors. However, cottonseed oil rises are curbed by upward operation rate and limited consumption for cottonseed oil as blending oil. Thus, short-term cottonseed oil price is predicted to fluctuate to stay strong.  Buyers can make proper replenishment on the dips and not chase up prices too high.