Today (Jul 21), the market for oilseeds and oils in China is shown as follows:

Oilseeds:

Imported soybean: The reference price for PNW soybeans is not offered and Brazilian soybeans at 3650 CNY at Shandong ports today, and non-GM Ukrainian soybean at 5,040 CNY/tonne at Tianjin port. 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 some 200,000-300,000 tonnes of Uruguayan soybeans are expected to arrive at Shandong ports gradually, and traders at Tianjin port have slightly lowered down prices in order to stimulate shipments. Overall, imported soybean market is predicted to swing in the short run.

Cottonseed: Cottonseed prices steadily rise by 0.008-0.02 CNY/kg today. Traders are active in ordering cottonseed as cottonseed by-products prices basically go up. Due to the COVID-19 outbreak in Urumqi, Xinjiang, it is short of vehicles from Xinjiang to inland under the management and control, increasing the transport cost. However, oil plants suffer from losses of crush margins on pricey cottonseed, 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 go strongly.

Oils: 

Summary: U.S. soybean futures rose on Monday due to demand from China, but oil futures decline on China’s Dalian Commodity Exchange today on profit taking. In the spot markets, soybean oil goes down 20-90 CNY/tonne and palm oil down 40-60 CNY/tonne, attracting some low-level purchases. Soybean oil traded 60,000 tonnes yesterday as buyers were active due to huge rises on the DCE. In the week as of July 17^th, China’s soybean oil stocks only increased by 8,000 tonnes to 1.197 mln tonnes, rapeseed oil stockpiles also stay at 216,000 tonnes, and palm oil inventories also saw a very small increment. However, China and the U.S. are still in tensions, and U.S. soybean crops are in key growing period, which could provide fresh cues to the market at any time. In addition, stock markets broadly go up as global monetary easing has led to an inflation expectation, so that funds are bullish about the market. So oil futures pared gains in afternoon trading. Overall, the oil market is predicted to keep a strengthening trend in the short run.

Soybean oil: GB Grade I soybean oil is mainly priced at 6280-6380 CNY/tonne in domestic coastal areas, a decline of 20-90 CNY/tonne. (Tianjin traders 6280-6300; Rizhao traders 6300; Zhangjiagang traders 6380; and Guangzhou traders 6380). 

Palm oil: RBD palm olein is mainly priced at 5680-5800 CNY/tonne in coastal areas, mostly down 40-60 CNY/tonne. (Tianjin traders 5730, down 40; Rizhao traders 5800, down 60; Zhangjiagang traders 5700, down 60; Guangzhou traders 5680, down 40; and Xiamen not available). 

Rapeseed oil: U.S. soybean futures closed with gains on Monday, and rapeseed oil futures slow gains to stay below the previous close on China’s Zhengzhou Commodity Exchange today. Spot rapeseed oil prices go down 20-40 CNY to 8950-9010 CNY/tonne in coastal regions in tepid trading. Domestic crushers maintain operation rates at a very high level due to huge soybean imports in July and August, and buyers are cautious now rapeseed oil is much higher than soybean oil and palm oil in price. This is bearish to the market. However, China’s imports of rapeseed are limited due to tensions with Canada, so domestic rapeseed crush and stockpiles both remain at historical low levels. Moreover, the news that non-GM rapeseed oil origin EU has been returned is still affecting the market. Besides, China and the U.S. are still in tensions, and U.S. soybean crops are in key growing period, which could provide fresh cues to the market at any time. In addition, the output of palm oil could get affected as heavy rains are forecast in Malaysia and Indonesia. Overall, spot rapeseed oil prices are predicted to maintain at high levels, and there will be only rigid demand in the market.

Cottonseed oil: Cottonseed oil prices steadily rise by 100-150 CNY/tonne today, but some follow futures to decline by 100 CNY/tonne. Relative low operation rate in cottonseed crushing mills, pricey cottonseed coupled with better trading volume, push cottonseed oil price higher. Nevertheless, the operation rate among soyoil plants remains super high as soybean import is huge in quantity. Due to a profit taking and an arbitrage by buying oils and selling meals, oil futures fall back on Dalian Commodity Exchange today. In the spot market, soybean oil down by 20-90 CNY/tonne and palm oil down by 40-60 CNY/tonne. Additionally, there still exists large uncertainty in relations between U.S. and China, 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 trend up.

(USD $1=CNY ¥6.99)