Today (Sep 9), the market for oilseeds and oils in China is shown as follows:

Oilseeds:

Imported soybean: Non-GM Russian soybeans are 5,300 CNY/tonne at Tianjin port. Prices are almost not offered and 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 and might have bought 30 vessels last week, 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 decline by 0.11 CNY/kg in several regions 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 an 11th straight session on Tuesday, but crude oil prices slid 7.6% as COVID-19 continued to spread. Hence, oils futures snap off an uptrend to decline on China’s Dalian Commodity Exchange today in the wake of the losses in crude oil. In the spot markets, soybean oil and palm oil follow to drop by 50-80 CNY/tonne, in tepid trade. In addition to the influence of crude oil prices, domestic oil futures decline also on the technical corrections after previous sharp rises, as broad fluctuation is the feature in fund-driven market. But soybean import cost keeps lifting owing to growing U.S. soybean prices. And domestic soybean oil stocks declined by 2.5% to 1.275 mln tonnes last week due to a fall in soybean crush and as buyers were stocking up for the Mid-Autumn Festival and the National Day holidays. Besides, inflation is in focus across the globe. Hence, domestic market is bullish about the oils market. Overall, the oils market is predicted to have limited downside space and keep a strong trend.

Soybean oil: GB Grade I soybean oil is mainly priced at 6,980-7,070 CNY/tonne in domestic coastal areas, a decline of 50-80 CNY/tonne. (Tianjin traders 7000-7010; Rizhao traders 6980; Zhangjiagang traders 7070; and Guangzhou traders 7040-7060). 

Palm oil: RBD palm olein is mainly priced at 6,330-6,410 CNY/tonne in coastal areas, down 50-80 CNY/tonne. (Tianjin traders 6360, down 80; Rizhao 6400, down 50; Zhangjiagang traders 6330, down 60; Guangzhou traders 6390-6410, down 80; and Xiamen not available). 

Rapeseed oil: U.S. soybean futures rose on Tuesday, and rapeseed oil futures open low to move up on China’s Zhengzhou Commodity Exchange today. Spot rapeseed oil prices steady 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 soybean arrivals will be huge as China continues buying U.S. soybeans, and the 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, but the market will still be in thin trade.

Cottonseed oil: Cottonseed oil prices stay stable with a decline of 50 CNY/tonne in several regions today. U.S. soybean futures had jumped for the consecutive eleventh day on Tuesday, but crude oil dropped by 7.6% result from climbing new COVID-19 cases in many countries. Consequently, oil futures on China’s Dalian Commodity Exchange today are dragged down and move lower. In spot market, soybean oil and palm oil down by 50-80 CNY/tonne. Besides, factories are still cautious in raising price as new cottonseed is about to go marketing, which may limit cottonseed oil price. But oil cottonseed is pricey, and some oil plants plan to resume the operation until the marketing of new cottonseed in mid-September. Thus, the operating rate stays at a low level, bulling cottonseed oil market. It is predicted that short-term cottonseed oil market will still stay strong with fluctuations.

(USD $1=CNY ¥6.84)