Today (Jul 16), 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 up 10 CNY at 5,070 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 mainly keep steady with several declines of 0.04 CNY/kg today. The trading volume is limited so most of traders don’t make an offer. 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. However, 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. Therefore, cottonseed market is likely to fluctuate to stay strong.

Oils: 

Summary: U.S. soybean futures rose on Wednesday on purchases of China, and crude oil also climbed on Wednesday. Oil futures swing to higher on China’s Dalian Commodity Exchange today. In the spot markets, soybean oil goes up 30-90 CNY/tonne and palm oil up 60-90 CNY/tonne. The trading is tepid as buyers remain cautious. The U.S. has announced to impose visa restrictions on certain employees of Chinese technology companies, including Huawei, which escalates tensions between Washington and Beijing. Moreover, excessive rains in Southeast Asia has also triggered concerns over falling palm oil output in Indonesia and Malaysia. U.S. soybean futures could still gain support from the crop weather. Hence, the oil market is predicted to keep strengthening in the short run. But China’s monthly soybean arrivals at ports will be more than 10 million tonnes in July and August, and port soybean stocks have increased to a historical high level, so domestic crushers are keeping very high operation rates. Therefore, these bearish factors may add to fluctuations in the market. Buyers with adequate stocks are suggested not chase after excessively higher prices.

Soybean oil: GB Grade I soybean oil is mainly priced at 6050-6220 CNY/tonne in domestic coastal areas, a rise of 30-90 CNY/tonne. (Tianjin traders 6080; Rizhao traders 6050; Zhangjiagang traders 6220; and Guangzhou traders 6160). 

Palm oil: RBD palm olein is mainly priced at 5550-5710 CNY/tonne in coastal areas, mostly up 60-90 CNY/tonne. (Tianjin traders 5650-5670, up 90; Rizhao traders 5710, up 80; Zhangjiagang traders 5580, up 60; Guangzhou traders 5550-5570, up 70; and Xiamen not available). 

Rapeseed oil: U.S. soybean futures rose on Wednesday, and rapeseed oil futures also extend gains on Zhengzhou Commodity Exchange today. Spot rapeseed oil prices go up 50-70 CNY to 8350-8520 CNY/tonne in coastal regions in tepid trading. Domestic importers for non-GM European rapeseed oil has been handling the procedures of return. China’s imports of rapeseed are limited due to tensions with Canada, so domestic rapeseed crush remains low and spot rapeseed oil is also n tight supplies. Beside, China and the U.S. are also in souring relations. Hence, rapeseed oil prices keep firm at high level. However, domestic crushers maintain operation rates at a very high level due to adequate soybean supply, so that soybean oil stocks are also mounting higher. But there is only rigid demand in the rapeseed oil market now as it is much higher than soybean oil and palm oil in price. Overall, short-term spot rapeseed oil market will stay at the high level and in tepid trading.

Cottonseed oil: Cottonseed oil prices are stable today. The operation rate in cottonseed crushing mills is low and cottonseed is pricey. U.S. soybean futures rose on Wednesday as China continued the purchase. And crude oil went strong. Oil futures on Dalian Commodity Exchange also swung to be higher today. In the spot market, soybean oil up by 30-90 CNY/tonne and palm oil up by 60-90 CNY/tonne. Consequently, cottonseed oil price is supported by these factors. But soybean arrival at ports will be upwards of 10 mln tonnes both in July and August, leading to a super high operation rate. Additionally, U.S. will impose visa restrictions on Huawei Technologies, which may also apply to other Chinese technology firms. This has escalated tensions between the two countries. Besides, people are concerned about the weather condition across crop area. It is predicted that short-term cottonseed oil may follow bulk oils to fluctuate to stay strong.

(USD $1=CNY ¥6.99)