Today (Sep 8), 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 5,300 CNY/tonne and non-GM Ukrainian soybeans are 4,800 CNY/tonne at Tianjin port. Holders are unable to ship soybeans due to strict commodity inspections at Shandong ports. Non-GM soybeans are in huge supplies at the moment, but downstream buyers are not active under slack demand. In addition, China is actively buying U.S. soybeans, which will increase the supply. 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. 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. stock markets were closed on Monday, and oils futures surge on China’s Dalian Commodity Exchange today thanks to the push of funds. In the spot markets, soybean oil goes up 80-140 CNY/tonne and palm oil up 70-90 CNY/tonne, both in tepid trade. U.S. soybean prices keep rising on concerns over the dryness the Midwest crop belt, and soybean import cost also follows to take a lift. As China’s soybean crush fell last week after some mills were facing ballooning meal inventories and people were stocking up for the Mid-Autumn Festival and the National Day holidays, soybean oil stocks declined by 2.5% to 1.275 mln tonnes last week. In addition, inflation is in focus across the globe. Hence, domestic market is bullish about the oils and funds are actively increasing long positions. Besides, soybean and corn will see a reduction in production in Northeastern China after suffering damages from typhoons. The overall oils market is predicted to keep a strong trend in the short term, but buyers are not suggested chase after excessively high prices as rises are relatively big today and it is necessary to notice risks in the wake of sharp rises.

Soybean oil: GB Grade I soybean oil is mainly priced at 7,040-7,110 CNY/tonne in domestic coastal areas, a rise of 80-140 CNY/tonne. (Tianjin traders 7040-7050; Rizhao traders 7040; Zhangjiagang traders 7110; and Guangzhou traders 7090-7110). 

Palm oil: RBD palm olein is mainly priced at 6,350-6,450 CNY/tonne in coastal areas, up 70-90 CNY/tonne. (Tianjin traders 6400-6430, up 90; Rizhao 6410, up 70; Zhangjiagang traders 6350, up 80; Guangzhou traders 6430-6450, up 90; and Xiamen not available). 

Rapeseed oil: U.S. soybean futures were not available on Monday. But soybean oil futures lead the gains in Chinese oils market today, as funds are flowing into the market after the state-owned media China Central Television reported there there is a rise in both price and trading volume of soybean oil. Spot rapeseed oil prices go up 10-20 CNY at 9,140-9,240 CNY/tonne in coastal regions in tepid trading. 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. Currently, rapeseed oil stocks are 234,000 tonnes in coastal China, a 48% decline from a year earlier. However, domestic consumption of rapeseed oil is also affected by its widening price spread with soybean oil and palm oil. Overall, rapeseed oil prices are predicted to stay at the high level due to tight supplies and as funds are increasing long positions in oils futures, but the market will still be in thin trade.

Cottonseed oil: Cottonseed oil prices stay stable today. U.S. stock market was closed on Monday. Driven by funds inflow, oil futures on China’s Dalian Commodity Exchange surged today. In spot market, soybean oil jumps by 80-140 CNY/tonne and palm oil up by 70-90 CNY/tonne. Besides, climbing cost of importing soybean, lower crush coupled with the stockpiling before holiday have caused soyoil inventory to decrease to 1,275,000 tonnes, a decline of 2.5% compared to the previous week. Thus, bulk oils market will still 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)