Today (Jul 15), the market for oilseeds and oils in China is shown as follows:

Oilseeds:

Imported soybean: The reference price for PNW soybeans stays at 4100 CNY and Brazilian soybeans at 3650 CNY at Shandong ports today, and non-GM Ukrainian soybean at 5,060 CNY/tonne at Tianjin port. 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, so that port prices still keep firm. Overall, short-term imported soybean market is predicted to keep firm on bullish factors.

Cottonseed: Cottonseed prices increase by 0.01-0.02 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 firmed on Tuesday, as 68 percent of the nation’s soybean acreage was rated in good to excellent condition, 3 percentage points below the previous week. Market participants show concerns over recent decline in Indonesia’s palm oil output; Zhengzhou’s rapeseed oil futures soared on the rumor that China had rejected cargoes of non-GM rapeseed oil from the European Union; Dalian’s palm oil futures surged on yesterday afternoon on talks that some palm oil vessels had a problem in clearing customs at China’s ports due to stricter indicators in sampling inspection. Therefore, on the Dalian Commodity Exchange today, palm oil futures keep strong, and soybean oil futures also following its leading. In the spot markets, soybean oil goes up 30-120 CNY/tonne and palm oil up 10-40 CNY, both in tepid trading. Palm oil vessels are mooring for the normal sampling inspection, instead of the detention, according to latest market sources. One vessel at Zhangjiagang port has complete customs clearance and will probably get unloaded by Friday. Hence, oil futures post noticeably smaller gains than the previous close. China’s monthly soybean arrivals at ports will reach 10 mln tonnes in July and August and domestic crushers will keep high operation rates, but the delivery of soybean oil has been at a brisk pace recently. Moreover, after months of U.S. pressure, the U.K. has banned Huawei from its 5G telecom network. And after the U.S. has, disregarding China’s solemn representations, signed into law the Hong Kong Autonomy Act, China said it will make necessary responses. China and the United States tensions could push the market higher at any moment. Overall, the oil market is predicted to keep range-bound and strengthening in the short term, and there may come declines after hasty gains.

Soybean oil: GB Grade I soybean oil is mainly priced at 5990-6130 CNY/tonne in domestic coastal areas, a rise of 30-120 CNY/tonne. (Tianjin traders 5990; Rizhao traders 6000; Zhangjiagang traders 6130; and Guangzhou traders 6070). 

Palm oil: RBD palm olein is mainly priced at 5460-5610 CNY/tonne in coastal areas, mostly up 10-40 CNY/tonne. (Tianjin traders 5560-5580, up 10; Rizhao traders 5610, up 40; Zhangjiagang traders 5500, up 30; Guangzhou traders 5460, up 20; and Xiamen not available). 

Rapeseed oil: U.S. soybean futures rose on Tuesday. And rapeseed oil futures extend the uptrend on the Zhengzhou Commodity Exchange today, as China is still inspecting those non-GM rapeseed oil imports from the European Union and some palm oil vessels are said have a problem in clearing customs at ports due to stricter indicators in sampling inspection. Spot rapeseed oil prices go up 20-50 CNY to 8340-8430 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 as crushers maintain high soybean crush due to huge soybean imports, 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 keep range-bound at the high level.

Cottonseed oil: Cottonseed oil prices rise by 50-100 CNY/tonne today. The operation rate among crushing mills is low and cottonseed is pricey. There are 68% of U.S. soybeans in good and excellent condition, which falls by 3% from the previous week. U.S. soybean futures ended higher on Tuesday. Besides, Indonesian palm oil production slipped, triggering market’s worries about this. And there are many rumors flying around the market. Rapeseed oil futures jump on the rumor that China may rejected unqualified non-GM rapeseed oil origin in Europe. Also, it is said that some palm oil vessels had a problem in clearing customs at China’s ports due to stricter indicators in sampling inspection. As a result, palm oil on Dalian Commodity Exchange surged on Tuesday and kept strengthening today, boosting soybean oil as well. Palm oil vessels are mooring for the normal sampling inspection, instead of the detention, according to latest market sources. One vessel at Zhangjiagang port has complete customs clearance and will probably get unloaded by Friday. Consequently, oil futures pared gains compared to the previous close. In the spot market, soybean oil up by 30-120 CNY/tonne and palm oil up by 10-40 CNY/tonne. Accordingly, cottonseed oil price is also pushed up. In addition, soybean arrival at ports will be upwards of 10 mln tonnes both in July and August, and soybean crush will also stay above 2 mln tonnes over the coming two weeks. 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)