Today (Sep 4), the market for oilseeds and oils in China is shown as follows:

Oilseeds:

Imported soybean: Brazilian soybeans are priced steadily at 3,580-3,660 CNY/tonne and Uruguayan soybeans are out of stock at Shandong ports today. Holders almost make no shipments due to strict commodity inspections at ports, and downstream buyers are not active now under slack demand. In addition, China is still buying up on U.S. soybeans and likely bought 10-20 vessels yesterday for shipments from Pacific Northwest and U.S. Gulf Coast ports, which will amplify the supply outlook. Overall, imported soybean market is predicted to be little changed before the end of the commodity inspections.

Cottonseed: Cottonseed prices keep steady today. Though the lockdown in Xinjiang has been lifted gradually, it is still lack of vehicles, so the delivery of cottonseed is still under impact. And cottonseed oil mills are not active in buying cottonseed as old cottonseed is pricey while new cottonseed is about to enter market. Hence, cottonseed market is dragged down. But cottonseed is in short supply, temporarily supporting cottonseed market. 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 in phases.

Oils: 

Summary: U.S. soybean futures rose for a ninth session on Thursday on robust demand and dry weather in the crop belt. Oils futures fluctuate to move higher after some declines in early session on China’s Dalian Commodity Exchange today. In the spot markets, soybean oil partially fluctuates by 20-50 CNY/tonne and palm oil mostly goes up 10 CNY/tonnes. The overall trade is predicted to be tepid, albeit some low-level purchases. Funds are increasing long positions in oils market with bullish sentiment, and constantly higher U.S. soybean prices push import cost in China to increase. The bullish sentiment and a global inflation expectation combine to help the oils market keep a strengthening trend. However, soybean crush remains stubbornly high due to huge soybean arrivals at ports. Meanwhile, as Chinese yuan is rising and domestic futures prices are posting stronger rises than spot prices, import margins of palm oil are picking up and importers are purchasing new palm oil cargoes. These may add fluctuations to the oils market. Participants are suggested to keep a balanced pace in buying and selling.

Soybean oil: GB Grade I soybean oil is mainly priced at 6,980-7,050 CNY/tonne in domestic coastal areas, fluctuating by 20-50 CNY/tonne. (Tianjin traders 6980; Rizhao traders 6900; Zhangjiagang traders 7050; and Guangzhou traders 7040-7050). 

Palm oil: RBD palm olein is mainly priced at 6,350-6,440 CNY/tonne in coastal areas, mostly up 10 CNY/tonne. (Tianjin traders 6410, up 10; Rizhao 6440, up 10; Zhangjiagang traders 6350, up 10; Guangzhou traders 6430-6440, flat; and Xiamen not available). 

Rapeseed oil: U.S. soybean futures closed further higher on Thursday, but rapeseed oil futures are moderately lower on China’s Zhengzhou Commodity Exchange today. Spot rapeseed oil prices go down 30-40 CNY at 9,160-9,210 CNY/tonne in coastal regions in tepid trading. Domestic soybean crush remains stubbornly high due to huge soybean imports, and buyers are cautious as rapeseed oil is much more expensive than soybean oil and palm oil, which combine to drag down rapeseed oil market. But imports of rapeseed are small in China due to tensions between Beijing and Ottawa, so that rapeseed crush has been at a low level and rapeseed oil stocks also stay at a historical low. Overall, rapeseed oil market is predicted to have little downside space and may fluctuate at the high level in the near term. Buyers can wait for the moment.

Cottonseed oil: Cottonseed oil prices stay stable and drop by 50 CNY/tonne in several regions today. As soybean arrival is huge in quantity at ports, soybean crush keeps maintaining high. And China increases the purchase of palm oil boatloads due to profitable import and appreciation of CNY, which may be unfavorable for oils market. Besides, new cottonseed is about to go marketing, so factories are wary of raising price, limiting cottonseed oil price. However, U.S. soybean futures are climbing up, thereby pushing up its import cost. Additionally, manufacturers have no pressure on inventory as cottonseed is pricey, bolstering cottonseed oil market. Thus, short-term cottonseed oil market is predicted to stay strong with fluctuations.

(USD $1=CNY ¥6.84)