Today (Sep 14), the market for oilseeds and oils in China is shown as follows:

Oilseeds:

Imported soybean: Non-GM Russian soybeans are down 50 CNY to 5,100 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 and the market is in slow shipment. 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 fluctuate by 0.03-0.1 CNY/kg 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 sharply rose last Friday and stand above 1,000 cents today on a bullish USDA report and strong export data, and oils futures also surge on China’s Dalian Commodity Exchange today. In the spot markets, soybean oil goes up 80-160 CNY/tonne and palm oil up 140-200 CNY/tonne. Chinese oil mills picked up soybean crush by 1% weekly to 1.97 mln tonnes last week, but soybean oil inventories still dropped by 0.3% to 1.27 mln tonnes as people were stocking up for the festivals. The import cost of soybeans keeps rising due to sharp gains in U.S. soybeans, and a global inflation expectation is in focus. Hence, the oils market is pushed to rush higher today and will keep a strong trend in the near term. But China’s soybean crush still remains at a very high level of 2 mln tonnes due to huge soybean arrivals at ports, and domestic buyers will finish replenishment late this month. Besides, Malaysian palm oil data are not positive to the market. Hence, DCE oils futures slightly narrow down gains in afternoon trade, and it is still necessary to pay attention to risk prevention.

Soybean oil: GB Grade I soybean oil is mainly priced at 6,920-7,000 CNY/tonne in domestic coastal areas, a rise of 80-160 CNY/tonne. (Tianjin traders 7140-7150; Rizhao traders 7080; Zhangjiagang traders 7200; and Guangzhou traders 7160).

Palm oil: RBD palm olein is mainly priced at 6,490-6,520 CNY/tonne in coastal areas, up 140-200 CNY/tonne. (Tianjin traders 6490-6500, up 150; Rizhao not available; Zhangjiagang traders 6500, up 200; Guangzhou traders 6500-6520, up 140; and Xiamen not available).

Rapeseed oil: U.S. soybean futures surged last Friday on strong export demand, and oils futures expand their early gains on China’s commodity exchanges today. Spot rapeseed oil prices goes up 160-180 CNY to 9,220-9,290 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. Rapeseed oil stockpiles dropped by 46% to 240,000 tonnes in domestic littoral regions last week, a year-on-year decline of 46%. As rapeseed oil is in tight supplies and funds are increasing long positions in oils futures, rapeseed oil market is predicted to stay at a high level in the short term. Domestic buyers will be cautious in chasing after higher prices in rapeseed oil market, for the demand has been limited by high prices and replenishment for the festival will come to an end in late September.

Cottonseed oil: Cottonseed oil prices stay stable today. U.S. soybean futures rose sharply on Friday and topped 1,000 cents today on bullish USDA report and strong export. Oil futures on China’s Dalian Commodity Exchange also soar today. In spot market, soybean oil up by 80-160 CNY/tonne and palm oil up by 140-200 CNY/tonne. Besides, old cottonseed is pricey, so the operation rate in oil plants is low, which may offer support to cottonseed oil market. Nevertheless, factories are still cautious in raising price as buyers are waiting for the marketing of new cottonseed. Consequently, cottonseed oil price has not followed bulk oils to rise yet. As bulk oils market keeps a strong trend, it is predicted that short-term cottonseed oil market will also be steady at a high level.

(USD $1=CNY ¥6.84)