Today (Sep 10), the market for oilseeds and oils in China is shown as follows:

Oilseeds:

Imported soybean: Non-GM Russian soybeans are down 150 CNY at 5,150 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 and new domestic soybeans are about to go marketing, but downstream buyers are not active under slack demand. In addition, China has bought at least 14-15 vessels of US soybeans this week, which will increase the supply. Overall, imported soybean market is predicted to post a weakening trend.

Cottonseed: Cottonseed prices decline by 0.08 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 intend 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 12th straight session on Wednesday, but Malaysian palm oil futures retreated on Wednesday on concerns over a rises in production and stocks ahead of the country’s official report, oils futures also extend but narrow down losses on Dalian Commodity Exchange today. In the spot markets, soybean oil and palm oil go down 10-40 CNY/tonne, attracting some low-level purchases. Malaysian palm oil stocks see a smaller-than-forecast rise in the MPOB report, so that oil futures slow down losses in afternoon trade on the DCE. The cost of importing soybeans is being lifted by U.S. soybean prices, which stay firm on robust export sales and as the USDA is likely to lower down U.S. soybean yield due to dry weather conditions. Meanwhile, soybean oil stockpiles in China decline again due to a decline in soybean crush last week and as buyers are stocking up for the Mid-Autumn Festival and the National Day holidays. Soybean oil traded at 45,000 tonnes yesterday. In addition, funds are active now as inflation is in focus across the globe. Overall, the oils market is predicted to have little downside space and to keep a strong trend.

Soybean oil: GB Grade I soybean oil is mainly priced at 6,940-7,000 CNY/tonne in domestic coastal areas, a decline of 10-40 CNY/tonne. (Tianjin traders 6940; Rizhao traders 6970; Zhangjiagang traders 7000; and Guangzhou traders 6970-6990). 

Palm oil: RBD palm olein is mainly priced at 6,240-6,320 CNY/tonne in coastal areas, down 30-40 CNY/tonne. (Tianjin traders 6270, down 40; Rizhao 6310, down 30; Zhangjiagang traders 6240, down 40; Guangzhou traders 6300-6320, down 40; and Xiamen not available). 

Rapeseed oil: U.S. soybean futures rose on Wednesday, but rapeseed oil swing to decline on China’s Zhengzhou Commodity Exchange today. Spot rapeseed oil prices goes down 50-80 CNY to 9060-9130 CNY/tonne in coastal regions in tepid trading. China’s soybean crush will maintain a the level of 2 mln tonnes per week, as soybean arrivals will be huge when the country is snapping up in the U.S. market. Besides, domestic consumption of rapeseed oil is also affected by its widening price spread with soybean oil and palm oil. However, 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. Overall, rapeseed oil prices will decline to adjust in the short run, and buyers can wait for the moment.

Cottonseed oil: Cottonseed oil prices stay stable with a decline of 100 CNY/tonne in several regions today. U.S. soybean futures had jumped for the consecutive twelfth day on Wednesday. But palm oil on Bursa Malaysia Derivatives sharply goes lower due to concerns over higher production and stock before the official statistics are released. Also, oil futures on China’s Dalian Commodity Exchange further decline but pare losses. In spot market, soybean oil and palm oil down by 10-40 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 old cottonseed is pricey now, 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 fluctuate mainly.

(USD $1=CNY ¥6.83)