Today (Jul 14), 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 4100 CNY, and Brazilian soybeans at 3650 CNY. Imported soybeans are more attractive than domestic soybeans at present in terms of prices, so that the trading has also turned better as some buyers turn to imported soybean market. In addition, port traders are controlling the volume for trading in the market, which also bolsters the price. Overall, short-term imported soybean market is predicted to keep strengthening on bullish factors.

Cottonseed: Cottonseed prices steadily increase by 0.08 CNY/kg today. The trading volume is limited so most of traders don’t make an offer. There is not much South Xinjiang cottonseed left now. And the freight from Xinjiang to inland due to a lack of vehicles, so the delivered price of Xinjiang cottonseed also goes up. However, oil plants suffer from losses of crush margins and the operation rate is low, which limits the trading. Moreover, the actual price is depending on different qualities of cottonseed. Therefore, cottonseed market is likely to fluctuate to stay strong.

Oils: 

Summary: U.S. soybean futures further fell on Monday due to dismal export data and the forecast for lower temperatures in the Midwest this month. And on China’s Dalian Commodity Exchange today, oil futures declined in early trading, but then palm oil futures swing to post sharp gains and soybean oil futures see slight rises, bolstered by rapeseed oil futures on the Zhengzhou Commodity Exchange. In the spot markets, soybean oil partially fluctuates by 10-20 CNY/tonne and palm oil up by 20-40 CNY/tonne, attracting some low-level purchases. China imported 11.16 mln tonnes of soybeans in June, a sharp increase of 73% from a year earlier, data from China’s Customs showed. China’s soybean stockpiles have hit 5.63 mln tonnes in coastal regions at present, a year-on-year increase of 32%. Hence, there are still bearish fundamentals. However, market participants have raised the question about the historical high palm oil output in Malaysia in June. In addition, China’s soybean oil stocks only rose by 6,500 tonnes weekly to 1.189 mln tonnes as some oil mills suspended production due to swelling soybean meal inventories, and its palm oil stockpiles fell by 7.2% weekly to 359,000 tonnes. The fundamentals have given some relief. And U.S. soybean futures will also have limited declines due to weather problems. Overall, the oil market is predicted to keep range-bound and strengthening in the short term. Buyers are suggested to buy dips for appropriate replenishment and not to chase after excessively high prices.

Soybean oil: GB Grade I soybean oil is mainly priced at 5880-6030 CNY/tonne in domestic coastal areas, partially fluctuating by 10-20 CNY/tonne. (Tianjin traders 5880-5890; Rizhao traders 5880; Zhangjiagang traders 6030; and Guangzhou traders 5970). 

Palm oil: RBD palm olein is mainly priced at 5330-5450 CNY/tonne in coastal areas, mostly up 20-40 CNY/tonne. (Tianjin traders 5430-5450, up 40; Rizhao traders not available; Zhangjiagang traders 5350, up 20; Guangzhou traders 5330-5340, up 30; and Xiamen not available). 

Rapeseed oil: U.S. soybean futures further fell on Monday. But rapeseed oil futures extend sharp gains on the Zhengzhou Commodity Exchange today, as China is said to have rejected 50,000 tonnes of unqualified non-GM rapeseed oil origin in the Europe and as funds increase long positions. Spot rapeseed oil prices go up 100 CNY to 8320-8390 CNY/tonne in coastal regions in tepid trading. China’s imports of rapeseed are limited due to tensions with Canada, so that domestic rapeseed crush also remains at a historical low. And domestic oil mills are carrying out previous contracts with rapeseed oil in stock. Moreover, China and the United States are in unstable relations, and U.S. soybean futures could also see weather premiums. All together bolster the rapeseed oil market. But China’s soybean oil stocks keep increasing due to high soybean crush, and buyers are cautious now as rapeseed oil is much higher than soybean oil and palm oil in price. Overall, short-term spot rapeseed oil prices will stay at a high level, bur there will be only rigid demand in the market.

Cottonseed oil: Cottonseed oil prices remain stable today. The operation rate among crushing mills is low and cottonseed is pricey. Rapeseed oil futures continue surging on Zhengzhou Commodity Exchange today, thereby it sees a distinct increase in palm oil on Dalian Commodity Exchange. Palm oil is up 20-40 CNY/tonne in the spot market and rapeseed oil still rises sharply. Thus, cottonseed oil price is bolstered by these factors. However, China’s soybean imports in June are 11.16 mln tonnes, jump by 73% than a year earlier, according to China’s Customs. In addition, soybean stocks in coastal regions have increased to 5.63 mln tonnes and up by 32% from the same period last year. Given the worries about weather condition across U.S. soybean area and uncertainty in U.S.-China relations, short-term cottonseed oil will probably follow bulk oils to fluctuate to stay strong.

(USD $1=CNY ¥7.00)