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

Oilseeds:

Imported soybean: Prices are not available at Shandong ports today amid an inspection on soybean flow by commodity authorities. Soybean stockpiles are at a high level at domestic ports, but downstream buyers hold a wait-and-see attitude, so there is only some rigid demand in the market and soybean shipments are at a slow pace. In addition, Argentine and Uruguayan soybean vessels will be arriving at domestic ports later this month, and China continues purchasing U.S. soybeans, so imported soybean stocks will be pushed further higher later, which will also be a constraint to the market. Market traders said that port trading will turn normalized, but there is no detail at this point. Overall, port soybean market is predicted to still trade at a narrow range after the inspection.

Cottonseed: Cottonseed prices stay stable today. The supply of cottonseed is decreasing and tightening, so traders are reluctant to sell them, which leads cottonseed to be resilient tentatively. But crushing plants reduce the operation rate on account of profit losses, so there are not many new orders, seeing light trading. Therefore, cottonseed prices stop rising and turn to be steady, and will likely fluctuate to stay strong in a short term.

Oils: 

Summary: U.S. soybean futures closed slightly lower on Monday, as U.S. crop planting was 93% completed, compared to 86% in the previous week and 72% last year. Oil futures swing to rally on China’s Dalian Commodity Exchange today on easing concerns over a second wave of the COVID-19 outbreak. In the spot markets, soybean oil goes up 10-80 CNY/tonne and palm oil up 70-130 CNY/tonne, and the trading may turn better at low-level prices. Malaysia’s palm oil exports show a good picture in the first half of June, and China’s palm oil stockpiles have further decreased by 6% weekly to 352,000 tonnes; hence, palm oil is the best performer today. Moreover, tight supplies in Brazil have lifted soybean premiums, so that its crushing margins face losses in China if by meal and oil prices on the DCE. And domestic soybean oil stocks total only about 960,000 tonnes at present, with a lower-than-forecast weekly rise. However, participants are concerned that palm oil exports may be subdued if India is to raise import duties. And Indonesia will likely miss its 9.6 million kiloliter target of palm-oil based B30 consumption this year, with the consumption only 8 million kiloliter possibly. Meanwhile, China has been scooping up on soybeans in north and south American markets, and its monthly soybean imports are forecast to top 10 mln tonnes between June and August. Its weekly soybean crush rose 7% to 2.05 mln tonnes last week and is expected to go to a record high of above 2.1 mln tonnes in coming two weeks. Overall, dominated by bullish factors, the oil market is predicted to maintain a strengthening trend.

Soybean oil: GB Grade I soybean oil is mainly priced at 5700-5850 CNY/tonne in domestic coastal areas, a rise of 10-80 CNY/tonne. (Tianjin traders 5740; Rizhao traders 5700; Zhangjiagang traders 5850; and Guangzhou traders 5830-5840). 

Palm oil: RBD palm olein is mainly priced at 5340-5420 CNY/tonne in coastal areas, mostly up 70-130 CNY/tonne. (Tianjin traders 5360, up 110; Rizhao traders 5410-5420, up 70; Zhangjiagang traders 5320, up 110; Guangzhou traders 5340, up 130; and Xiamen not available). 

Rapeseed oil: U.S. soybean futures slid on Monday, as high good-to-excellent crop condition scores pointed to an abundant production prospect. Rapeseed oil futures edge lower on China’s Zhengzhou Commodity Exchange today. Spot rapeseed oil prices go down 10-20 CNY/tonne to 7760-7790 CNY/tonne in thin trading. China’s monthly soybean arrivals at ports are expected to surpass an average of 10 mln tonnes between June and August, and weekly soybean crush also maintains at a very high level. The market is concerned about a second wave of the COVID-19 outbreak and thus a second hit on the catering business on the back of that. But tensions are sourcing between China and Canada as well as the United States, and rapeseed oil supply is tightening in the spot market, which help boost the prices. Overall, short-term rapeseed oil market may still stay at the high level, but in thin trading.

Cottonseed oil: Cottonseed oil prices keep steady and fluctuate by 50 CNY/tonne in some regions today. Cottonseed is pricey and in tight supply in Xinjiang, so oil factories are in no hurry to sell cottonseed oil. Besides, oils on Dalian Commodity Exchange fluctuate to rebound as concerns over a second wave of coronavirus outbreak recede. On the spot market, soybean oil rises by 10-80 CNY/tonne and palm oil increases by 70-130 CNY/tonne. Thus, cottonseed oil market is bolstered by these factors. However, it is predicted that soybean arrivals from June to August will reach an average of over 10 mln tonnes. And soybean crush rose by 7% to 2.05 tonnes last week and will likely record a new high of 2.10 mln tonnes for the coming two weeks. These are all bearish for oils market and affecting buyers’ enthusiasm in purchasing. Therefore, cottonseed oil is in light trading and may fluctuate at a narrow range in the near term.

(USD $1=CNY ¥7.08)