Today (Jun 28), the market for oilseeds and oils in China is shown as follows:

Oilseeds:

Imported soybean: Domestic soybean prices keep rising, and PNW soybean supply is highly concentrated at ports, both of which bolster its prices to increase. But Brazilian soybeans are in huge supply and of very different qualities. In addition, some soybean cargoes from Argentina Uruguay are unloading at domestic ports; hence, port stocks are rising. On the demand front, buyers are not vigorous, which also slows down port shipments. Overall, imported soybean market is predicted to trade at a narrow range in the short term.

Cottonseed: Cottonseed prices stay firmly today. Oil plants suffer from losses of crush margins due to pricey cottonseed, so they are not active in the purchase of cottonseed. Besides, some traders have cut the price as the delivery of cotton-by products gets slower. But the supply of cottonseed is decreasing and tightening, raising traders’ selling reluctance. Therefore, cottonseed price is predicted to fluctuate slightly in a short term but stay strong on the whole.

Oils: 

Summary: November U.S. soybean futures fell 7 cents on Friday to 861.25 cents, a decline of 12.75 cents from Tuesday, as the U.S. Midwest would brace for crop boosting rains and people were concerned about the economic activities as the U.S. saw another surge in confirmed coronavirus cases. And China’s Dalian Commodity Exchange is closed today. In the spot markets, soybean oil partially declines by 10-50 CNY/tonne and palm oil also down 50 CNY/tonne partially. The market is in tepid trading as there is no cue from DCE. Out of huge imports and heat waster in summer, China’s oil mills have maintained soybean crush at a very high level, so that soybean oil stocks also keep increasing. Meanwhile, China’s palm oil stocks have also risen to over 400,000 tonnes. However, imported soybean crush is not lucrative in China now if by DEC meal and oil prices, so market traders are propping up prices. Besides, there are such uncertainty factors as U.S.-China relations and weather conditions in the U.S. crop belt. Overall, short-term oil market is predicted to follow futures to swing to adjust, with little downside space, and to maintain a strengthening trend.

Soybean oil: GB Grade I soybean oil is mainly priced at 5780-5940 CNY/tonne in domestic coastal areas, partially down by 10-50 CNY/tonne. (Tianjin traders 5780; Rizhao traders 5780; Zhangjiagang traders not available; and Guangzhou traders 5940).  

Palm oil: RBD palm olein is mainly priced at 5460-5500 CNY/tonne in coastal areas, partially down 50 CNY/tonne. (Tianjin traders 5380-5400, down 50; Rizhao traders 5500, flat; Zhangjiagang traders not available; Guangzhou traders 5460, flat; and Xiamen not available).

Rapeseed oil: Meteorological agencies forecast that the U.S. Midwest would brace for crop boosting rains, and market participants predicted that U.S. soybean production this year would get near to or create a historical high. Meantime, people were concerned about the economic activities as the U.S. saw another surge in confirmed coronavirus cases. November U.S. soybean futures fell 7 cents on Friday to 861.25 cents, a decline of 12.75 cents from Tuesday. And China’s Zhengzhou Commodity Exchange is closed today. Spot rapeseed oil prices stay stable at 7860-7930 CNY/tonne in tepid trading. China’s palm oil stockpiles stay at a historical low level due to small imports, and rapeseed oil stocks also keep reducing as oil mills have sharply lowered down operation rates when rapeseed imports get limited by China-Canada relations. These together support rapeseed oil prices. But its soybean oil stocks have seen a sharp increase, as oil mills maintain soybean crush at a high level due to huge soybean imports between June and August. Overall, short-term rapeseed oil prices may stay at a high level.

Cottonseed oil: Cottonseed oil prices mainly keep steady and partly fluctuate by 20-100 CNY/tonne. Cottonseed is pricey and in tight supply in Xinjiang, so oil factories are in no hurry to sell cottonseed oil. These factors are offering support to cottonseed oil market. On the other hand, favorable rainfall crossed the soybean area and the coronavirus cases surged in U.S., triggering people’s concerns over economic damages. U.S. soybean futures set a fall of 7 cents to 861.25 cents for November contract, declining by 12.75 cents from 874 cents on Tuesday. Domestic futures markets were closed over the weekend. On the spot market, soybean oil partly down by 10-50 CNY/tonne and palm oil partly down by 50 CNY/tonne. Besides, soybean oil stocks maintain an uptrend amid super high operation rate in soyoil plants. Meanwhile, palm oil stocks also rise to be upwards of 400,000 tonnes. Thus, these factors are bearish for cottonseed oil market. It is predicted that cottonseed oil market may move sideways in a short term, but will likely follow bulk oils to stay strong on the whole.

(USD $1=CNY ¥7.06)