Today (Aug 25), the market for oilseeds and oils in China is shown as follows:

Oilseeds:

Imported soybean: The reference price is 3,910-4,000 CNY for Uruguayan soybeans and 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, which are supportive of the market. 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 0.04 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 maintain high levels. After new cottonseed intensively enters market, the price will probably fall back from highs.

Oils: 

Summary: U.S. soybean futures rose on Monday on good export data and expectations for lower good-to-excellent crop conditions. U.S. and Chinese trade negotiators held a phone call on Tuesday morning Beijing time, and both sides were upbeat on implementing the Phase One Trade Deal and agreed to continue pushing forward the implementation. U.S. soybean futures gain 8 cents today, and oils futures pare gains after rushing high in early trade on China’s Dalian Commodity Exchange today. In the spot markets, soybean oil goes up 20-50 CNY/tonne and palm oil up 10 CNY/tonne in tepid trading in the morning, and may both decline in the afternoon. The oils market is still supported by lingering U.S-China tensions and inflation expectations. However, Malaysia’s palm oil exports were down 16% on August 1-25 versus July 1-25, so that DCE palm oil futures swing to decline in afternoon trade. China’s soybean oil stocks rose 2.7% weekly to 1.26 mln tonnes due to the arrivals of imported crude soybean oil and as soybean crush went up 2.6% to 2.02 mln tonnes. China’s weekly soybean crush is predicted to increase further to 2.02-2.05 mln tonnes in the next two weeks. As a move to implement the trade deal, China purchased 8 cargoes of U.S. soybeans yesterday, which is also bearish to the market. Overall, short-term oils market will keep rang-bound and stay in the correction territory. Buyers can wait now as DCE oils futures move lower in afternoon trade.

Soybean oil: GB Grade I soybean oil is mainly priced at 6,570-6,660 CNY/tonne in domestic coastal areas, a rise of 20-70 CNY/tonne. (Tianjin traders 6570; Rizhao traders 6610; Zhangjiagang traders 6650; and Guangzhou traders 6650-6660). 

Palm oil: RBD palm olein is mainly priced at 5,980-6,150 CNY/tonne in coastal areas, mostly up 10 CNY/tonne. (Tianjin traders 6100-6130, flat; Rizhao 6150, up 10; Zhangjiagang traders 5980, up 10; Guangzhou traders 6040-6050, up 10; and Xiamen not available). 

Rapeseed oil: U.S. soybean futures rose on Monday, but rapeseed oil futures swing to decline on China’s Zhengzhou Commodity Exchange today. Spot rapeseed oil prices are offered lower by 10-30 CNY at 9,070-9,140 CNY/tonne in coastal regions in tepid trading. China’s soybean crush increased 3% weekly to 2.02 mln tonnes last week under adequate supplies, as soybean imports are large this month and next month. Meanwhile, Malaysian palm oil futures fell on higher output and weak export data, and Chinese importers are buying up on lucrative palm oil now. But China’s rapeseed crush remains at a low level as its imports is limited amid tensions between Beijing and Ottawa, and crushing plants are mainly carrying out contracts at present. Currently, there is no supply pressure in the oils markets. Besides, China and the U.S. are still in tensions, and there are inflation expectation. Overall, rapeseed oil market is predicted to have little downside space and to swing to adjust in the near term. Buyers can wait on the sidelines.

Cottonseed oil: Cottonseed oil prices stay stable with a fluctuation of 30-100 CNY/tonne in some regions today. Malaysian palm oil exports from August 1 to August 25 fall by 16% compared to the same period last month. With imported crude soybean oil arriving and being unloaded at ports, soyoil inventories increase by 3% from a week earlier to 1.26 mln tonnes, which is unfavorable to oils market. Moreover, cottonseed oil trading is tepid due to slack demand, which may limit its price. Besides U.S. soybean futures rose on Monday as export performed well and the good-to-excellent rate of crop declined. And CBOT soybean futures further rose by 8 cents today. It is predicted that short-term cottonseed oil market may move with fluctuations.

(USD $1=CNY ¥6.92)