Today (Aug 19), the market for oilseeds and oils in China is shown as follows:

Oilseeds:

Imported soybean: The reference price goes up 40 CNY at 3,950-4,000 CNY for Uruguayan soybeans and 3,770 CNY/tonne for Argentine soybeans at Shandong ports, and 4,800 CNY/tonne for non-GM Ukrainian soybeans at Tianjin port. Traders there are controlling soybean volume in circulation at Shandong ports, and port authorities are conducting strict inspections on the flow of GM soybeans; hence, soybean supply of certain grades are relatively small at ports now. In a hybrid of the bull and the bear, imported soybean market is predicted to swing in the short run.

Cottonseed: Cottonseed prices steadily down by 0.02 NY/kg today. Many places in Xinjiang have been locked down due to the COVID-19 outbreak, so the delivery of cottonseed is still under impact. And cottonseed oil mills are not active in buying cottonseed due to a high price, which weighs on cottonseed market. Besides, cottonseed is in short supply as a whole. Facing cottonseed shortages, the cottonseed market is supported temporarily. Therefore, short-term cottonseed market is likely to stay at highs. After new cottonseed intensively enters market, the price will probably fall back from high levels.

Oils: 

Summary: U.S. soybean futures fell on Tuesday, as good-to-excellent rate and pod setting were ahead of last year and as expectations of a bumper U.S. soybean harvest grow as Crop Tour also pointed to a strong crop yield potential. Oils futures continue rising on China’s Dalian Commodity Exchange today, as funds are still buyers in the market. In the spot markets, soybean oil goes up 20-50 CNY/tonne and palm oil up 80 CNY/tonne. The trade is predicted to be better on low-level forward basis and tepid for spots. As soybean crush was down slightly last week due to ballooning meal inventories last week, China’s soybean oil stockpiles also dropped by 1.3% weekly to 1.23 mln tonnes. And its amount in outstanding contracts rose 2.4% to a new high of 2.61 mln tonnes on strong purchases at low-level prices. Meanwhile, domestic rapeseed oil and palm oil inventories are also at low levels. Hence, millers are spiking prices due to positive fundamentals. Besides, China and the U.S. are still in tensions and there are inflation expectations. Hence, funds are still buying dips for long positions in the market. Overall, the oil market is predicted to maintain a strengthening trend. But domestic importers have embarked on purchasing palm oil vessels this week, which is profitable if on basis, so participants should see if it can affect domestic market sentiment.

Soybean oil: GB Grade I soybean oil is mainly priced at 6,670-6,790 CNY/tonne in domestic coastal areas, up 20-50 CNY/tonne. (Tianjin traders 6690; Rizhao traders 6670; Zhangjiagang traders 6780; and Guangzhou traders 6770-6790). 

Palm oil: RBD palm olein is mainly priced at 6,140-6,250 CNY/tonne in coastal areas, mostly up 80-90 CNY/tonne. (Tianjin traders 6220-6240, up 90; Rizhao 6250, up 90; Zhangjiagang traders 6160, up 80; Guangzhou traders 6140-6170, up 80; and Xiamen not available). 

Rapeseed oil: U.S. soybean futures fell on Tuesday, but rapeseed oil futures modestly rise on China’s Zhengzhou Commodity Exchange today. Spot rapeseed oil prices are offered higher by 10-30 CNY at 9,160-9,360 CNY/tonne in coastal regions in tepid trading. China’s rapeseed crush stays at a low level, as its rapeseed imports are limited amid tensions with Canada. And domestic palm oil stockpiles are also small. Little pressure in supplies support rapeseed oil prices now. However, domestic crushing plants are working at high rates due to huge soybean imports. And domestic consumption of rapeseed oil is low due to its widening price spread with soybean oil and palm oil. Overall, short-term rapeseed oil will maintain at high levels due to tight supplies, and the trade will be thin.

Cottonseed oil: Cottonseed oil prices stay stable and rise by 50 CNY/tonne in some regions. Cottonseed price is too high and manufacturers have no pressure from inventory. Oil futures on Dalian Commodity Exchange today continued rising on large buying in market. In the spot market, soyoil up by 20-50 CNY/tonne and palm oil up by 80 CNY/tonne. With oils fundamentals still looking good, cottonseed oil price is bolstered. But in addition, Chinese importers have started to buy large amounts of palm oil cargoes due to considerable import profits. Moreover, cottonseed oil trading is tepid due to slack demand, which limits its price rises. It is predicted that short-term cottonseed oil market may fluctuate to stay strong.

(USD $1=CNY ¥6.92)