Today (Aug 26), 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 keep steady today. Many places in Xinjiang have been locked down amid the COVID-19 pandemic, 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: The USDA reported export sales of 204,000 tonnes of soybean for delivery to China and 142,500 tonnes to unknown destinations, so U.S. soybean futures rallied on Tuesday on rising export demand along with concerns over deteriorating crop conditions. Oils futures opened lower to swing to move higher and stay above the previous close on China’s Dalian Commodity Exchange today. In the spot markets, soybean oil fluctuates by 20-80 CNY/tonne and palm oil up 30-50 CNY/tonne. Domestic oils market is supported by growing cost of importing soybeans in the wake of a rise in U.S. soybean prices and also by inflation expectations. Palm oil futures post a weaker trend now due to stronger Malaysian ringgit and as Malaysia’s palm oil exports were down 16% on August 1-25 versus July 1-25. Besides, China’s soybean oil stocks rose 2.7% weekly to 1.26 mln tonnes with the arrivals of imported crude soybean oil and as domestic crushers were working at very high rates due to large soybean imports. On the whole, domestic oils market is predicted to keep range-bound and adjust in the short term.
Soybean oil: GB Grade I soybean oil is mainly priced at 6,570-6,680 CNY/tonne in domestic coastal areas, fluctuating by 20-80 CNY/tonne. (Tianjin traders 6580; Rizhao traders 6570; Zhangjiagang traders 6670; and Guangzhou traders 6670-6680).
Palm oil: RBD palm olein is mainly priced at 5,950-6,100 CNY/tonne in coastal areas, mostly up 30-50 CNY/tonne. (Tianjin traders 6070-6100, up 50; Rizhao not available; Zhangjiagang traders 5950, up 50; Guangzhou traders 6010-6020, up 30; and Xiamen not available).
Rapeseed oil: U.S. soybean futures rose on Tuesday, but rapeseed oil futures expand their early losses on China’s Zhengzhou Commodity Exchange today. Spot rapeseed oil prices are offered lower by 30-70 CNY at 8,930-9,070 CNY/tonne in coastal regions in tepid trading. Domestic soybean crush stays stubbornly high due to huge soybean imports, and buyers are cautious in rapeseed oil market due to its much higher prices than that of soybean oil and palm oil, which together weigh down rapeseed oil market. 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. Domestic rapeseed oil stocks are only 210,000 tonnes in coastal regions, a year-on-year decline of 55%. 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 today. Malaysian palm oil exports from August 1 to August 25 fall by 16% compared to the same period last month. And soybean crush remains super high amid huge imports. 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 closed up on Tuesday. And oil futures on Dalian Commodity Exchange today fluctuate to move higher after low opens. In the spot market, soybean oil fluctuates by 20-80 CNY/tonne and palm oil grows by 30-50 CNY/tonne. Additionally, manufacturers have no pressure from cottonseed oil as cottonseed is pricey, bolstering cottonseed price. It is predicted that short-term cottonseed oil market may move with fluctuations.
(USD $1=CNY ¥6.91)