Today (Jul 6), the market for oilseeds and oils in China is shown as follows:

Oilseeds:

Imported soybean: At Shandong ports today, the reference price for PNW soybeans stays at 4000-4100 CNY, and Brazilian soybeans at 3460-3570 CNY. Soybean vessels from Argentina and Uruguay have been arriving at Shandong ports from time to time for days, and some 200,000 tonnes from Uruguay will also be reaching ports gradually; hence, soybean stocks at ports will further increase. While port stocks have been at a high level at present, there is only rigid demand in the market. Downstream customers are not vigorous at present, which slows down port shipments. In the short run, imported soybean market is predicted to fluctuate with a weakening trend.

Cottonseed: Cottonseed prices steadily decline by 0.05 CNY/kg today. Oil plants suffer from losses of crush margins due to pricey cottonseed. Besides, the delivery of cotton-by products gets slower, so some oil mills are not active in purchasing of cottonseed. But cottonseed is in short supply, and it will be three months before new cottonseed enters market, so some traders are reluctant to sell them and prop up price. Therefore, the market is likely to edge down tentatively due to cottonseed shortage, but will still stay strong on the whole as bulk oils and meals are rising.

Oils: 

Summary: U.S. soybean futures move sharply higher on CBOT today, with the most-active contract breaking 900 cents. And oil futures open low and fluctuate to climb higher on China’s Dalian Commodity Exchange today. In the spot markets, soybean oil goes up 30-80 CNY/tonne and palm oil up 50-60 CNY/tonne. The trading is predicted to remain good at low-level basis and tepid for spot contracts. Oil futures on the DCE move significantly higher today on bullish sentiment, following strong gains in the stock market. U.S. soybean futures are also climbing higher on crop weather problems, which also enhances the cost of imports. And according to foreign media, U.S. President Donald Trump is considering two or three actions against China, with a high probability to be unveiled in days. Hence, short-term oil market is bolstered to keep a strengthening trend. But soybean oil stocks have risen by 6% weekly to 1.19 mln tonnes in China due to huge soybean imports and high soybean crush, and palm oil is expected to see higher output in Malaysia. These could add to fluctuations in the market, so participants need to keep good balance of buying and purchasing.

Soybean oil: GB Grade I soybean oil is mainly priced at 5820-5970 CNY/tonne in domestic coastal areas, a rise of 30-60 CNY/tonne. (Tianjin traders 5930; Rizhao traders 5890; Zhangjiagang traders 6050; and Guangzhou traders 6010-6020). 

Palm oil: RBD palm olein is mainly priced at 5360-5410 CNY/tonne in coastal areas, mostly up 50-60CNY/tonne. (Tianjin traders 5410, up 50; Rizhao traders not available; Zhangjiagang traders 5360, up 50; Guangzhou traders 5380, up 50; and Xiamen not available). 

Rapeseed oil: U.S. market was closed last Friday, and November soybean contract sharply increase to cross 900 cents on the CBOT today. Oil futures move higher in China’s commodity exchanges today. Spot rapeseed oil prices go up 50-80 CNY at 7940-8030 CNY/tonne in tepid trading. China’s rapeseed imports are limited amid tensions with Canada, so that rapeseed crush remains at a low level. And China and the United States are also in tensions, which triggers concerns over the implementation of the trade deal. However, soybean oil stocks have risen by 6% weekly to 1.19 mln tonnes in China due to huge soybean imports and high soybean crush, and rapeseed oil stocks increases by 2.4% to 190,000 tonnes. In addition, buyers are not vigorous in the rapeseed oil market due to its much higher price than soybean oil and palm oil. Overall, spot rapeseed oil prices are at high level due to tight supplies.

Cottonseed oil: Cottonseed oil prices stay stable with a rise of 50 CNY/tonne in some regions today. U.S. soybean notably expands gains on CBOT when trading resumed, and exceeds 900 cents for the main contract. Oils on Dalian Commodity Exchange swings higher amid low opens. On the spot market, soybean oil up by 30-80 CNY/tonne and palm oil up by 50-60 CNY/tonne. Likewise, cottonseed price is still high. Accordingly, oils market is bolstered by these factors. However, soybean arrival is huge in quantity and soybean crush is extremely high. In this case, soybean oil stocks have risen by 6% to 1.19 mln tonnes compared with the previous week. In addition, Malaysian palm oil production is expected to increase, which may limit rises of oils in later period. It is predicted that short-term cottonseed oil market may fluctuate to stay strong.

(USD $1=CNY ¥7.07)