Today (Aug 31), the market for oilseeds and oils in China is shown as follows:

Oilseeds:

Imported soybean: The reference price goes down 30 CNY to 3,580-3,660 CNY/tonne for Brazilian soybeans and remains stable at 3,910-4,000 CNY for Uruguayan soybeans at Shandong ports today. Port soybeans are in slow shipments as buyers are not active due to small demand for soybeans. Moreover, auctions for imported soybeans are underway, with high volume sold and trading prices lower than spots, which is also weighing down the market. Overall, short-term imported soybean market may have some downside potential due to dismal demand.

Cottonseed: Cottonseed prices are stable 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 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 sharply rose last Friday on strong demand from China and as the market worried that high temperatures and little rain could affect U.S. soybean yield, and also continue shooting higher above 960 cents today. These help soybean oil gain on China’s Dalian Commodity Exchange today, led by palm olein futures. In the spot markets, soybean oil goes up 20-60 CNY/tonne and palm oil up 90-140 CNY/tonne. Soybean oil market will see some low-level purchases. Domestic funds are increasing their long positions in oils and millers are also raising prices, as the cost of importing soybeans is lifted by rising U.S. soybean prices. However, domestic soybean crush remains at a very high level due to huge imports, so that soybean oil stocks also went up 4% to 1.31 mln tonnes. Besides, buyers will finish stocking up packaging oils in middle September. Therefore, soybean oil prices see smaller rises in palm oil today. Thanks to the support of sharp rises in U.S. soybean prices, domestic oils market will keep a strengthening trend before the end of replenishing packaging oils and ahead of the marketing of new U.S. soybeans.

Soybean oil: GB Grade I soybean oil is mainly priced at 6,870-6,950 CNY/tonne in domestic coastal areas, a rise of 20-60 CNY/tonne. (Tianjin traders 6870; Rizhao traders 6790; Zhangjiagang traders 6930; and Guangzhou traders 6920-6950). 

Palm oil: RBD palm olein is mainly priced at 6,280-6,340 CNY/tonne in coastal areas, mostly up 90-140 CNY/tonne. (Tianjin traders 6340, up 130; Rizhao not available; Zhangjiagang traders 6280, up 140; Guangzhou traders 6290-6310, up 90; and Xiamen not available). 

Rapeseed oil: U.S. soybean futures closed sharply higher last Friday, and rapeseed oil futures stay below the previous close in spite of gains on China’s Zhengzhou Commodity Exchange today. Spot rapeseed oil prices swing by 10-50 CNY at 9,070-9,170 CNY/tonne in coastal regions in tepid trading. The consumption of rapeseed oil in China is affected by its widening price spread with soybean oil and palm oil, so rapeseed oil stocks rose 7% to 227,000 tonnes in coastal regions in the week ending August 28^th. Besides, soybean oil stockpiles also increased by 4% to 1.31 mln tonnes as soybean crush remained high under huge imports. These factors combine to weigh down rapeseed oil market. However, China’s rapeseed imports are limited amid tensions between Beijing and Ottawa. As rapeseed crush remains at a low level, crushing plants are mainly carrying out contracts at present. Overall, rapeseed oil market is predicted to stay high due to tight supplies and to stay in thin trade.

Cottonseed oil: Cottonseed oil prices stay stable and rise by 50 CNY/tonne in several regions today. U.S. soybean surged on Friday on China’s brisk demand and concerns about reduced yield prospects affected by heat and limited rain across crop areas. US soybean futures on CBOT today extend the rally and top 960 cents, boosting a further increase in soybean oil on China’s Dalian Commodity Exchange. And palm oil on DCE leads the gains. In spot market, soybean oil up by 20-60 CNY/tonne and palm oil up by 90-140 CNY/tonne. Additionally, manufacturers have no pressure on inventory as cottonseed is pricey, bolstering cottonseed oil market. But soybean crush remains super high amid huge imports. Consequently, soybean oil inventories grow by 4% to 1.31 mln tonnes from a week earlier. Besides, the stockpiling of packing oil will be over in mid-September, bearing oils market. Moreover, cottonseed oil trading is tepid due to slack demand, and factories are cautious in raising price as new cottonseed is about to go marketing. Thus, the price rises of cottonseed oil may be curbed by these factors. It is predicted that short-term cottonseed oil market may fluctuate at high levels.

(USD $1=CNY ¥6.86)