Today (Oct. 29), the market for oilseeds and oils in China is shown as follows:

 

 

Imported soybean: Imported soybeans are priced steadily today, among which Canada soybean with 41% protein is unchanged at 3,980 yuan/tonne, and Ukraine soybean at 3,400 yuan/tonne. Imported soybean market gets weighed down by the adequate supply of Chinese soybeans. China and the US are said to work out their phase one trade deal soon with smooth talks underway, so China will purchase more US soybeans later. And this is bearish to domestic market. Overall, short-term market for imported soybeans will likely stay stable with a weakening trend in the short term. 

 

Cottonseed: Cottonseed prices stay stable with some strong fluctuations of 0.01-0.06 yuan/kg. There are fewer North Xinjiang cottonseeds, and South Xinjiang cottonseeds have not gone marketing in huge quantities yet. Moreover, the trading volume is also increasing with a rise of operation rate. In consequence, cottonseed market is buoyed by these factors. However, oil mills tend to remain cautious in purchasing cottonseed due to the high price, and the rises of cottonseed are also limited by increasing Xinjiang cottonseed. Therefore, overall cottonseed is predicted to rebound with fluctuations, and buyers can maintain safety inventory on the dips.

 

 

Summary: US soybeans closed with gains last night on good export inspection data and as trade talks between China and the US were going well. And oil futures extend gains on the Dalian Commodity Exchange today due to the arbitrage of buying oils and selling meal, but actually stay below the previous close. In the spot market, soybean oil and palm oil decline by 10-30 yuan/tonne. Contracts in November and December are traded most actively in the soybean oil market, where the trading remained strong for a ninth session yesterday and may be still brisk today. Due to handsome soybean crush margins and profitable imports of Argentine crude soybean oil, domestic oil market is restricted from further rises but to swing to adjust. But some parts of soybean imports now are not for mills, so some mills have to suspend their production due to the shortage in commercial supply from late this month to early next month. Soybean oil stocks continue to drop by 2% weekly to 1.3145 mln tonnes, and buyers this year are expected to start preparations for the New year’s Day and the Spring Festival from late November. Amid upbeat sentiment in the market, there is little room for this round of declines, and will be a strong pattern later. On account of the adjustment on the DCE, buyers can wait or buy on immediate demand. 

 

Soybean oil: GB Grade I soybean oil is mainly priced at 6,390-6,460 yuan/tonne in domestic coastal areas, some down by 10-30 yuan/tonne. (Tianjin traders 6,390-6,400, Rizhao traders 6,390, Zhangjiagang traders 6,470, and Guangzhou traders 6,460). 

 

Palm oil: RBD palm olein is mainly priced at 5,070-5,220 yuan/tonne in coastal areas, mostly down 20-30 yuan/tonne. (Tianjin traders5,210-5,220, down 20; Rizhao traders yet offered; Zhangjiagang traders 5,180, down 30; Guangzhou traders 5,070-5,080, down 30; and Xiamen yet offered).

 

Imported rapeseed oil: Imported rapeseed oil is basically stable in price today, of which it settles at 7,370-7,550 yuan/tonne in coastal areas. (Fujian 7,420; Guangdong 7,370; and Guangxi 7,550, stable). With tight supplies of rapeseed in China due to its pending issues with Canada, only several mills are able to continue their crush at present. And mills are having very low stocks of rapeseed oil and thus are stalling the sales. But the demand for rapeseed oil is affected by its huge price gap with soybean oil, and other oils now have adequate supplies; hence, rapeseed oil market has limited space for further rises. The overall market is predicted to maintain its strengthening trend at the high level with some fluctuations, and buyers can wait or buy on immediate demand. 

 

Cottonseed oil: Cottonseed oil price stays stable with some rises of 50-200 yuan/tonne today. The trading situation of oils after National Day is better than expected, so factories basically have no stock of cottonseed oil, which boost the cottonseed oil market. But the consumption for cottonseed oil as blending oil is not enough, and spot soybean oil and palm oil down by 10-30 yuan/tonne, which is temporarily unable to continue the rally. However, the market is still optimistic about oils outlook due to a reduction of US soybean production and inflation expectation, so cottonseed oil price may keep trending up with fluctuations. Buyers can maintain safety inventory on the dips.