Today (Apr. 24), the market for oilseeds and oils in China is shown as follows:

 

 

Imported soybean: Imported Argentine soybean prices are quoted at 4300 CNY/tonne at port today, down 50 CNY. There are about 50,000 tonnes of soybeans expected to arrive at Shandong port late this month. While soybean supply gets increased, downstream buyers now hold adequate stocks and are not active making purchases, so the trading remains subdued in the market. Out of slow shipments, traders feel discouraged and lower down quotes. Dominated by bearish factors, the market for imported soybeans is predicted to have downside potential in the short run.

 

Cottonseed: Cottonseed price stays stable with individual rises of 0.014 CNY/kg. As it will take a long time before the marketing of new cottonseed, traders are in no hurry to run out stocks, so cottonseed market is bolstered. But due to a poor market of oils and meals, some crushing mills in Shandong plan to suspend the operation and mainly implement previous contract or run out stocks. And they are wary of buying spot goods and even tend to force price down. Under the game of both supply and demand sides, it is predicted that short-term cottonseed price may fluctuate to adjust.

 

 

Summary: U.S. soybean futures ended further higher on Thursday on a bullish export sales report. And on the Dalian Commodity Exchange today, oil futures moderately move higher in early trading, but then swing to edge lower, weighed down by a sharp rise in production in palm oil and a decline in demand. In the spot market, soybean oil partially goes down 30-50 CNY/tonne and palm oil mostly down by 10-50 CNY/tonne, still with decent trading on forward-month deliveries. Soybean oil was traded at over 80,000 tonnes yesterday, with a majority on forward basis. Of it, more than 30,000 tonnes was bought from northern markets by a state-owned firm. Oil market was performing well yesterday. However, gross crushing margins for Brazilian soybeans still stay high at 286-385 CNY/tonne on the DCE, so Chinese importers keep purchasing South American crops. And monthly soybean arrivals at ports are predicted to average 9.8 mln tonnes from May to July. Soybean crush in China is forecast to return to a very high level in the coming two weeks. Meanwhile, there is a myriad bearish, ranging from growing palm oil production and a delay in a nationwide rollout of B20 mandate in Malaysia, to a decline in demand for edible oil amid a nationwide lockdown in India. These together weaken the upward impetus in oil market, so that it is forecast to follow futures to fluctuate frequently in the short run. And the mid-to-long trend is not bright now due to crippling catering business amid the pandemic and subdued demand for biofuels under low crude oil prices. Buyers are suggested to remain cautious in chasing after higher prices and to make appropriate replenishment on low forward basis.

 

Soybean oil: GB Grade I soybean oil is mainly priced at 5650-5750 CNY/tonne in domestic coastal areas, a partial decline of 30-50 CNY/tonne. (Tianjin traders 5650-5660 (DCE Y2009+170/180); Rizhao traders 5700; Zhangjiagang traders 5750; and Guangzhou traders 5680 (DCE Y2009+200) for May). 

 

Palm oil: RBD palm olein is mainly priced at 4810-5050 CNY/tonne in coastal areas, mostly down by 10-50 CNY/tonne. (Tianjin traders 5050, flat; Rizhao traders 4970, flat; Zhangjiagang traders 4890-4900, down 30; Guangzhou traders 4810,down 10; and Xiamen not available). 

 

Imported rapeseed oil: Imported rapeseed oil goes down in price today, of which it settles down 10-20 CNY at 6,920-7,050 CNY/tonne in coastal regions. (Fujian 7050; Guangdong not available, and Guangxi 6920.) Chinese importers keeping purchasing South American soybeans due to handsome crush margins on the DCE, And now buyers also sign deal to buy some US soybeans. And monthly soybean arrivals at ports are predicted to average 9.8 mln tonnes from May to July. With the arrival of soybean vessels at ports, soybean crush will move to a relatively high level next week. Meanwhile, the pandemic is still severe across the world, and it will take time for foodservices to resume normal operations. Besides, crude oil prices are still in a weak territory, and have also resulted in a sharp decline in the demand for biofuels. These together drag down rapeseed oil market. However, domestic rapeseed crush remains at a low level amid tensions between China and Canada, and rapeseed oil, soybean oil and palm oil stocks are all declining, which helps support the market. Overall, rapeseed oil market is predicted to follow futures to fluctuate at a narrow range in the short run and remain to be seen in the mid-to-long term. Buyers can stay on the sidelines at the moment.

 

Cottonseed oil: Cottonseed oil keeps steady today. Soybean crush is projected to rise to an extremely high level over the next two weeks, leading the overall oils trend to be not optimistic. Meanwhile, palm oil production jumped higher but the demand slid, depressing the price. On the spot market, soybean oil partly down by 30-50 CNY/tonne and palm oil mostly down by 10-50 CNY/tonne. Also, the trading in cottonseed oil market is tepid. Accordingly, cottonseed oil price is dampened. But cottonseed is pricey due to low inventory, and oil plants still tend to prop up price amid decreasing operation rate. In addition, the coronavirus pandemic has greatly hit the foodservices and the demand for biofuels plunges on account of gloomy crude oil. In light of this situation, the mid-term trend of oils market is not optimistic. Therefore, cottonseed oil price needs to be taken with caution.