Today (Sep 7), the market for oilseeds and oils in China is shown as follows:

Oilseeds:

Imported soybean: Prices for imported GM soybeans are not offered at Shandong ports today due to strict commodity inspections. Non-GM Russian soybeans are 4,500 CNY/tonne and non-GM Ukrainian soybeans are 4,800 CNY/tonne at Tianjin port. The prices for GM soybeans are almost not offered due to strict commodity inspections at Shandong ports, and downstream buyers are not active now under slack demand. In addition, China is said to have bought 25-30 vessels of U.S. soybeans last Friday, 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 down by 0.02 CNY/tonne 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. Many factories tend to wait for the marketing of new cottonseed. Hence, cottonseed market is dragged down. But cottonseed is in short supply, temporarily supporting cottonseed market. Therefore, the price declines of cottonseed may be limited by cottonseed shortages and but will probably become deeper after new cottonseed intensively enters market.

Oils: 

Summary: U.S. soybean futures rose for a tenth straight session last Friday, bolstered by strong demand and dry weather. Oils futures swing to move high on China’s Dalian Commodity Exchange today. In the spot markets, soybean oil and palm oil mostly go up 10-70 CNY/tonne. The market forecasts that the USDA in its report on Friday is likely to lower soybean estimate to 52 bu per acre from 53.3 bu/acre last month, which may bolster U.S. soybean futures to get near to 990-1000 cents. And this will directly lift the import cost in China. In addition, China’s soybean oil stockpiles fell 2.5% to 1.275 mln tonnes last week on lower soybean crush and as buyers were stocking up for the festivals. And recently, a large company has begun to purchase on the basis of February to May. China’s soybean and corn production is massively affected after a violent typhoon struck in Heilongjiang, coupled with a global inflation expectation, funds are actively increasing long positions in oils. Overall, domestic oils market is predicted to keep a strong trend in the near term.

Soybean oil: GB Grade I soybean oil is mainly priced at 6,930-7,050 CNY/tonne in domestic coastal areas, mostly up 10-70 CNY/tonne but also a partial decline of 10-20 CNY/tonne. (Tianjin traders 6970; Rizhao traders 6930; Zhangjiagang traders 7040; and Guangzhou traders 7010-7050). 

Palm oil: RBD palm olein is mainly priced at 6,330-6,410 CNY/tonne in coastal areas, up 50-70 CNY/tonne. (Tianjin traders 6360, up 50; Rizhao 6390, up 50; Zhangjiagang traders 6330, up 70; Guangzhou traders 6400-6430, up 60; and Xiamen not available).

Rapeseed oil: U.S. soybean futures closed further higher last Friday, but rapeseed oil futures swing to decline on China’s Zhengzhou Commodity Exchange today. Spot rapeseed oil prices go down 30-40 CNY at 9,130-9,220 CNY/tonne in coastal regions in tepid trading. Domestic soybean crushers are working at high rates due to huge soybean imports, and buyers are cautious as rapeseed oil is much more expensive than soybean oil and palm oil. In the week ending September 4^th, rapeseed oil inventories rose 3% to 234,000 tonnes in coastal China. These combine to drag down rapeseed oil market. But tensions between China and Canada are capping off rapeseed imports in China, so that rapeseed crush has been at a low level and millers are mainly carrying out contracts at present. 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 increase by 100 CNY/tonne in several regions today. U.S. soybean futures rose for the consecutive tenth session on Friday underpinned by strong demand and drought weather. And oil futures on China’s Dalian Commodity Exchange move higher today, and spot soybean oil and palm oil mostly up by 10-70 CNY/tonne. Besides, the cost of importing soybean is climbing up, so lower crush and stockpiling before holiday have caused soyoil inventory to decrease to 1,275,000 tonnes with a weekly decline of 2.5%. Thus, bulk oils market will maintain a strong trend. Additionally, manufacturers have no pressure on inventory as old cottonseed is pricey, bolstering cottonseed oil market. Nevertheless, factories are wary of raising price as new cottonseed is about to go marketing, which may limit cottonseed oil price. Therefore, short-term cottonseed oil market is predicted to stay strong with fluctuations.

(USD $1=CNY ¥6.84)