Today (Jul 17), the market for oilseeds and oils in China is shown as follows:

Oilseeds:

Imported soybean: Traders are controlling the quantity of soybeans in circulation at Shandong ports, limiting the supply there. Add to this, imported soybeans are more attractive than domestic soybeans at present in terms of prices. Hence, soybean prices keep firm. But traders at Tianjin port have slightly lowered down prices in order to stimulate shipments. Overall, imported soybean market is predicted to stay stable in the short run.

Cottonseed: Cottonseed prices fluctuate 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 rose on Thursday after the U.S. Department of Agriculture reported sales of 522,000 tonnes of U.S. soybeans to China. Chinese importers resold the 50,000 tonnes of non-GM rapeseed origin the Europe, according to market sources. Hence, rapeseed oil futures further soar on China’s Zhengzhou Commodity Exchange today. And soybean oil and palm oil futures are also bolstered to surge on Dalian Commodity Exchange. In the spot market, soybean oil and palm oil climb higher 80-150 CNY/tonne. The trading is tepid for spots and and fair for low-level forward basis, as buyers remain cautious about excessive gains on DCE. Indonesian production in July tightens the supply of crude palm oil, leading to some problems in its exports and shipments. And exporters in the country are said to have oversold palm oil, which pushes higher the quotes for nearby contracts. Producing countries are boosting DCE palm oil futures to march upwards noticeably, as import margins are at a loss in China. Although China is still purchasing U.S. soybeans, tensions could escalate at any time between the two countries, as China said it will respond to US bullying. In addition, U.S. soybean crops are in key growth period now, which often brings speculation on the weather. Hence, the overall oil market will keep it strengthening trend ahead of marketing pressure from U.S. soybeans. But Chinese crushers are maintaining high operation rates due to huge soybean imports, and “helpful” funds in this round of rises will also add to fluctuations in the market, so buyers are suggested to keep balance in purchasing and selling, but not to chase after excessive rises.

Soybean oil: GB Grade I soybean oil is mainly priced at 6150-6290 CNY/tonne in domestic coastal areas, a rise of 80-150 CNY/tonne. (Tianjin traders 6180; Rizhao traders 6150; Zhangjiagang traders 6290; and Guangzhou traders 6240-6250). 

Palm oil: RBD palm olein is mainly priced at 5610-5770 CNY/tonne in coastal areas, mostly up 90-140 CNY/tonne. (Tianjin traders 5690-5710, up 90; Rizhao traders 5770, up 110; Zhangjiagang traders 5670, up 140; Guangzhou traders 5610, up 110; and Xiamen not available). 

Rapeseed oil: U.S. soybean futures rose on Thursday, and rapeseed oil futures hit the limit-up on Zhengzhou Commodity Exchange today, as the 50,000 tonnes of non-GM rapeseed oil origin EU has been returned. Spot rapeseed oil prices go up 240-280 CNY to 8640-8760 CNY/tonne in coastal regions in tepid trading. 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 the high level. However, domestic crushers maintain operation rates at a very high level due to huge soybean imports in July and August, so that soybean oil stocks are also mounting higher. And buyers are cautious now rapeseed oil is much higher than soybean oil and palm oil in price. But due to tight supplies and as funds go long in the futures market, spot rapeseed oil market will stay at the high level in the short term.

Cottonseed oil: Cottonseed oil prices increase by 50-250 CNY/tonne today. The operation rate in cottonseed crushing mills is low and cottonseed is pricey. U.S. soybean futures closed higher on Thursday as USDA announced to sell 522,000 tonnes of soybeans to China. Market rumor said that 50,000 tonnes of non-GM rapeseed oil originated in Europe had not been cleared by China’s Customs and resold by importers to other countries. Rapeseed oil skyrocketed on Zhengzhou Commodity Exchange on the news, pulling a surge in soybean oil and palm oil on Dalian Commodity Exchange. In the spot market, soybean oil and palm oil rose by 80-150 CNY/tonne. Consequently, cottonseed oil price was also pushed up. But soybean arrival at ports is huge in quantity, leading to a super high operation rate. Additionally, the tensions between U.S. and China are heightening, and markets are concerned about the weather condition across crop area as US soybean is in a critical period for growing. It is predicted that short-term cottonseed oil may follow bulk oils to go up with fluctuations.

(USD $1=CNY ¥7.00)