Today (Sep 11), the market for oilseeds and oils in China is shown as follows:

Oilseeds:

Imported soybean: Non-GM Russian soybeans are 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 en basse, but downstream buyers are not active under slack demand. In addition, China continues snapping up US soybeans now, which will increase the supply. Overall, imported soybean market is predicted to post a weakening trend. Participants can keep an eye on 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 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 slid on Thursday as traders adjusted positions ahead of a USDA report. The decline in crude oil and Malaysian palm oil futures also drag down oils futures prices on China’s Dalian Commodity Exchange today. In the spot markets, soybean oil goes down 10-60 CNY/tonne and palm oil down 10-30 CNY/tonne, probably in tepid trade. Malaysia’s palm oil August-ending stockpile and production are higher than the forecast while its exports are not huge enough. And China’s soybean crush is expected to maintain at a level of 2 mln tonnes per week in the short term due to huge soybean arrivals at ports and as China continues buying U.S. soybeans. Meanwhile, traders are closing long positions in oils futures as buyers will finish stocking up for the festival, couples with a sharp rises in soybean meal futures today. Hence, the oils market continues to fluctuate and adjust under pressure. But firm U.S. soybean futures prices lend strong support for import cost, soybean oil stockpiles are under pressure in China, and inflation is in focus across the globe, so there may be little space for the oils market to go down further in China, and the overall market is predicted to keep a strong trend.

Soybean oil: GB Grade I soybean oil is mainly priced at 6,920-7,000 CNY/tonne in domestic coastal areas, a decline of 10-60 CNY/tonne. (Tianjin traders 6950-6960; Rizhao traders 6920; Zhangjiagang traders 7000; and Guangzhou traders 6970-6990). 

Palm oil: RBD palm olein is mainly priced at 6,270-6,350 CNY/tonne in coastal areas, down 10-30 CNY/tonne. (Tianjin traders 6320, down 10; Rizhao not available; Zhangjiagang traders 6270, down 30; Guangzhou traders 6330-6350, down 30; and Xiamen not available). 

Rapeseed oil: U.S. soybean futures fell on Thursday, and oils futures open low and decline on China’s commodity exchanges today. Spot rapeseed oil prices goes down 10-20 CNY to 9,040-9,110 CNY/tonne in coastal regions in tepid trading. Domestic soybean oil crushers are keeping high operation rates due to huge soybean imports, and the consumption of rapeseed oil is affected by its widening price spread with soybean oil and palm oil, which combine to drag down rapeseed oil prices. 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 market is predicted to have little downside space and may fluctuate at the high level in the near term. Buyers can temporarily wait for the moment.

Cottonseed oil: Cottonseed oil prices stay stable today. U.S. soybean futures, crude oil and palm oil on Bursa Malaysia Derivatives dropped on Thursday. Oil futures on China’s Dalian Commodity Exchange are dragged down to further today. In spot market, soybean oil down by 10-60 CNY/tonne 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 ¥6.84)