Today (Aug 24), the market for oilseeds and oils in China is shown as follows:

Oilseeds:

Imported soybean: The reference price goes down 40 CNY to 3,910-4,000 CNY for Uruguayan soybeans and remains flat at 3,770 CNY/tonne for Argentine soybeans at Shandong ports today. The demand for soybeans is slack at present, so the market is not very active. Moreover, the abortive sales in ongoing imported soybean auctions are also adding to bearish sentiment to the market. However, traders 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 decrease by 0.02 CNY/tonne 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. But new cottonseed has yet to go marketing, and cottonseed is in short supply as a whole, so the cottonseed market is supported temporarily. Therefore, short-term cottonseed market is likely to narrowly fluctuate at high levels. After new cottonseed intensively enters market, the price will probably fall back from highs.

Oils: 

Summary: U.S. soybean futures fell on last Friday on a bumper harvest prospect and as possible rains could ease concerns over dryness in the U.S. Midwest. Oils futures swing to adjust on China’s Dalian Commodity Exchange today. In the spot markets, soybean oil goes down 10-60 CNY/tonne and palm oil fluctuates by 10-60 CNY/tonne, in tepid trading. As domestic soybean crush rose 3% to 2.02 mln tonnes last week, coupled with the arrivals of imported crude soybean oil at ports, domestic soybean oil stocks increased by 2.7% weekly to 1.26 mln tonnes. And China was said to have bought 15 vessels of U.S. soybeans last week, and on last Tuesday and Wednesday, domestic importers purchased 9 cargoes of palm oil for shipments in Sept-Dec. The trend in palm oil market is also capped as Malaysia’s palm oil sees recovering production and weaker exports. However, the oils supply is not exerting pressure to the market now. Besides, China and the U.S. are still in tensions, and there are inflation expectation. Therefore, the market still has some support. The overall market is predicted to have little downside space and may swing into correction territory. As U.S. soybeans will go marketing in September while Chinese buyers will complete replenishment at that time, the oils market in China will face more downside pressure, unless there are twists and turns in China-US relations. Participants are suggested to keep light stockpiles.

Soybean oil: GB Grade I soybean oil is mainly priced at 6,570-6,680 CNY/tonne in domestic coastal areas, a decline of 10-60 CNY/tonne. (Tianjin traders 6510; Rizhao traders 6560; Zhangjiagang traders 6600; and Guangzhou traders 6610-6620). 

Palm oil: RBD palm olein is mainly priced at 5,950-6,070 CNY/tonne in coastal areas, fluctuating by 10-60 CNY/tonne. (Tianjin traders 6070, down 30; Rizhao not available; Zhangjiagang traders 5950, down 60; Guangzhou traders 6020-6050, up 10; and Xiamen not available). 

Rapeseed oil: U.S. soybean futures fell last Friday, and rapeseed oil futures decline on China’s Zhengzhou Commodity Exchange today. Spot rapeseed oil prices are offered lower by 50-100 CNY at 8,990-9,170 CNY/tonne in coastal regions in tepid trading. China’s soybean imports are substantial in August and September, and the monthly imports could also exceed 8 mln tonnes in the fourth quarter; hence, domestic soybean crush will keep high under abundant supplies. Moreover, the consumption of rapeseed oil is affected by its widening prices spread with soybean oil and palm oil, so that its stocks rose 6% to 210,000 tonnes last week. But China’s rapeseed crush stays at a low level, as its rapeseed imports are limited amid tensions with Canada. And China and the United States are also in tensions. As the market is still declining, buyers can wait on the sidelines.

Cottonseed oil: Cottonseed oil prices stay stable with a decline of 50 CNY/tonne in several regions today. The rain in soybean area may ease concerns over draught weather and market expects a bumper harvest, causing US soybean futures to close lower on Friday. Soybean oil stocks increase to 1.26 mln tonnes, a rise of 2.7% compared with the previous week. Besides, with the import profit going better, the trend of oils is limited. In the spot market today, soybean oil down by 10-60 CNY/tonne and palm oil fluctuates by 10-60 CNY/tonne, seeing light trading. Moreover, cottonseed oil trading is tepid due to slack demand, which may limit its price. Nevertheless, manufacturers have no pressure from inventory due to pricey cottonseed, supporting cottonseed oil market. It is predicted that short-term cottonseed oil market may move with fluctuations.

(USD $1=CNY ¥6.92)