Today (Apr. 16), the market for oilseeds and oils in China is shown as follows:

 

 

Imported soybean: The price for Argentine soybean is 4,400 yuan/tonne at port today. Soybeans are in small supply at Shandong ports currently, and domestic soybean prices still posts an uptrend, both of which continue to bolster the market. However, some traders grow a strong sentiment for making delivery to book profits. Moreover, Considerable crush margins on the DCE continue luring Chinese importers to buying up on soybeans. Brazilian soybean exports may hit a record monthly high of 13.8 mln tonnes in April, of which some 10 mln tonnes may be heading for China. In a hybrid of the bull and the bear, the market for imported soybeans is predicted to stay stable in the short term.

 

Cottonseed: Cottonseed prices keep steady with partial rises of 0.01-0.04 yuan/kg. There is not much gross cottonseed left in the market. Meanwhile, ranchers are in need of purchasing cottonseed, so traders are in no hurry to run out stocks and the offers are firm. But the trading in cottonseed meal market is gloomy, slowing cottonseed oil delivery. Thus, oil mills cut the operation rate and are not active in purchasing cottonseed, which drags down cottonseed market. It is predicted that short-term cottonseed price may move sideways with fluctuations, so buyers can wait and see.

 

 

Summary: U.S. soybean futures slid further lower on Wednesday. Soybean oil futures shoot up in intraday session on the Dalian Commodity Exchange (DCE). Meanwhile, DCE palm oil futures post a weaker trend, with strong nearby contracts but weak forward ones, as Malaysia has postponed the rollout of B20 biodisel mandate and Indonesian B30 plan also face some challenges. In the spot markets, soybean oil posts a partial rise of 40-100 CNY/tonne and palm oil up by 20-50 yuan/tonne. Spot trading is forecast to be tepid, while there will still be decent purchases on low-level forward basis. Currently, soybean crush remains low, and soybean oil and palm oil stocks are both declining.  And buyers are still waiting for picking up soybean oil in some regions. The trading in soybean oil totaled over 40,000 tonnes yesterday, most of which was on forward basis, and this has encouraged mills to raise prices. However, Chinese buyers keep purchasing Brazilian soybeans as gross crushing margins still stay high at 282-354 yuan/tonne for April-July delivery, and monthly soybean arrivals at ports will average 9.8 mln tonnes from May-July. Besides, soybean crush will return to a normal level of 1.75 mln tonnes next week. Hence, there may be limited upward space for oil market. The aforementioned rumor will be only a temporary support to the market. It is suggested to remain cautious about the mid-to-long trend, as huge soybean cargoes are en route, the demand is dismal in catering businesses, and weak crude oil prices have also hit the demand for biofuels. Buyers are suggested to make some appropriate replenishment on low-level forward basis, but not to chase after high prices. 

 

Soybean oil: GB Grade I soybean oil is mainly priced at 5800-5950 yuan/tonne in domestic coastal areas, a partial rise of 40-100 yuan/tonne. (Tianjin traders 5650 (DCE Y2009+60) for June-Sept; Rizhao traders 5920; Zhangjiagang traders 5950; and Guangzhou traders 5800-5830). 

 

Palm oil: RBD palm olein is mainly priced at 4960-5200 yuan/tonne in coastal areas, mostly up 20-50 yuan/tonne. (Tianjin traders 5200, up 50; Rizhao traders 5180, up 20; Zhangjiagang traders 5060, up 30; Guangzhou traders 4960, up 20; and Xiamen not available). 

 

Imported rapeseed oil: Imported rapeseed oil edge lower in price today, of which it settles down 10 yuan at 7,020-7,100 yuan/tonne. (Fujian 7100, down 10; Guangdong 7020, and Guangxi 7020.) Healthy crush margins have encouraged Chinese importers to continue scooping on South American crops, so that monthly soybean arrivals at ports in China could average an overwhelming 9.8 mln tonnes from May-July. Mills have begun to pick up operation rates on that account, and soybean crush is forecast to return to a normal level next week. On the demand side, overseas COVID-19 has clamped down aggressively on global catering businesses, and weak crude oil prices have also subdued the demand for biofuels. Hence, rapeseed oil market comes under pressure. However, domestic rapeseed crush remains low amid tensions between China and Canada, and soybean oil, palm oil and rapeseed oil stocks are all declining, which now underpin the market. Overall, rapeseed oil prices may follow futures to fluctuate at a narrow range in the short run, but remain to be seen in mid-to-long trend. Buyers can wait for the moment.

 

Cottonseed oil: Cottonseed oil keeps steady with partial decrease of 50-100 yuan/tonne today, while several traders raise the price by 50 yuan/tonne. Soybean crush will rally to normal levels next week. But the demand in catering services is poor, and the demand for biofuels plummets amid gloomy crude oil market. Thus, the delivery of cottonseed oil is slowed, dragging down its market. But rumors revival again that China will purchase and stockpile 1 mln tonnes of soybean oil. Though there has been no official word yet, soybean oil on Dalian Commodity Exchange still shoots higher and the trend is stronger than palm oil that with strong nearby contracts but weak forward ones. As Malaysia has postponed the implement of B20 Biodiesel Programme, Indonesian B30 Programme will also face challenge. On the spot market, soybean oil partly up by 40-100 yuan/tonne and palm oil up by 20-50 yuan/tonne, and some traders follow it to offer higher. For cottonseed price would not go down in the near term and cottonseed oil price is also bolstered by falling operation rate, it is predicted that short-term cottonseed oil market may mainly fluctuate to adjust.