Today (Jul 22), 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 soybeans up 10 CNY at 5,050 CNY/tonne at Tianjin port. Traders are controlling the quantity of soybeans in circulation at Shandong ports and the supply also keeps reducing at Tianjin port. 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, which may also weigh on the market. Overall, imported soybean market is predicted to swing in the short run.

Cottonseed: Cottonseed prices rise by 0.04-0.08 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. Therefore, cottonseed market is likely to go strongly in a short term.

Oils: 

Summary: U.S. soybean futures fell on Tuesday, as the USDA report showed 69% of soybean crops was good or excellent, higher than the forecast 67%. Rapeseed oil futures further surge on Zhengzhou Commodity Exchange (ZCE) today, as its stockpiles stay low at 216,000 tonnes and funds are going long due to an inflation expectation. And Dalian soybean oil and RBD palm olein also follow to post gains. In the spot markets, soybean oil goes up 50-110 CNY/tonne and RBD palm olein up 50-70 CNY/tonne, still attracting good trading at low-level basis. Domestic market becomes more confident about an increase in soybean oil demand, as soyoil stockpiles only saw a slight rise in spite of super high soybean crush. Soybean oil traded at over 70,000 tonnes yesterday, and oil mills are also in smooth deliveries. Meanwhile, 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. And domestic investors are driving rapeseed oil to stay strong recently. Overall, the craze of “funds” will drive the overall oil market to maintain a strong trend in the short term, and the market movement will depend largely on the duration of funds.

Soybean oil: GB Grade I soybean oil is mainly priced at 6370-6500 CNY/tonne in domestic coastal areas, a rise of 50-110 CNY/tonne. (Tianjin traders 6370-6380; Rizhao traders 6430; Zhangjiagang traders 6480; and Guangzhou traders 6500). 

Palm oil: GB Grade I soybean oil is mainly priced at 6370-6500 CNY/tonne in domestic coastal areas, a rise of 50-110 CNY/tonne. (Tianjin traders 6370-6380; Rizhao traders 6430; Zhangjiagang traders 6480; and Guangzhou traders 6500). 

Rapeseed oil: U.S. soybean futures fell on Tuesday, and ZCE rapeseed oil futures surge to pass the 9,000 mark today. Spot rapeseed oil prices go up 310-330 CNY to 9270-9330 CNY/tonne in coastal regions in tepid trading. China’s rapeseed crush remains at a low level as China-Canadian tensions continue to constrain its imports, and crushers now are just carrying out contracts after having sold out spot rapeseed oil spots. Currently, rapeseed oil stocks also stay at a historical low of 216,000 tonnes in coastal regions. Besides, China and the U.S. are still in tensions, and U.S. soybean crops are in key growing period. Hence, rapeseed oil prices are buoyed to keep firm at the high level. But domestic crushers maintain high operation rates 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, spot rapeseed oil prices are predicted to stay at high levels under tight supplies and the craze of funds.

Cottonseed oil: Cottonseed oil prices mainly keep steady and grow by 50 CNY/tonne in some regions today. Factories have no pressure from inventory as the operation rate among cottonseed oil plants is low, and cottonseed is still pricey, leading to a high cost. Besides, rapeseed oil stocks stay at a low level of 216,000 tonnes. Moreover, rapeseed oil futures on the Zhengzhou Commodity Exchange sharply rise today following a large buying on inflation expectation. Nevertheless, and then oil futures on the Dalian Commodity Exchange also broadly go up. In the spot market, soybean oil up by 50-110 CNY/tonne and palm oil up by 50-70 CNY/tonne. All these factors have pushed cottonseed oil price higher. In addition, the operation rate among soyoil plants remains super high as soybean import is huge in quantity. But 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 key period for growing. It is predicted that short-term cottonseed oil may still follow bulk oils to trend up.

(USD $1=CNY ¥6.97)