Today (Sep 15), the market for oilseeds and oils in China is shown as follows:

Oilseeds:

Imported soybean: Non-GM Russian soybeans are offered at 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, 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 decline by 0.02 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 further advanced on Monday on strong demand from China. Oils futures continue rising but actually stay below the previous close on China’s Dalian Commodity Exchange today. In the spot markets, soybean oil fluctuates by 10-50 CNY/tonne and palm oil down by 30-50 CNY/tonne, and the trade is predicted to reduce today. China’s soybean oil stockpiles fell 0.3% weekly to 1.27 mln tonnes, and the import cost for soybeans keeps climbing following a sharp rise in U.S. soybean prices. Meanwhile, traders forecast Malaysia’s palm oil exports for September 1-15 to see a month-on-month increase of 10-12%. And a global inflation expectation in in focus. Supported by these positive fundamentals, the oils market is predicted to keep a strong trend. But China’s soybean crush stays at a very high level, as DCE crush margins are handsome in the wake of rises in oil and meal prices and as soybean imports remains huge when China is still snapping up U.S. soybeans. Besides, buyers are about to complete replenishing for the holidays. Therefore, participants are suggested to pay attention to risks and keep a good balance in buying and selling.

Soybean oil: GB Grade I soybean oil is mainly priced at 7,170-7,220 CNY/tonne in domestic coastal areas, fluctuating by 10-50 CNY/tonne. (Tianjin traders 7170; Rizhao traders 7180; Zhangjiagang traders 7220; and Guangzhou traders 7180-7210). 

Palm oil: RBD palm olein is mainly priced at 6,550-6,590 CNY/tonne in coastal areas, down 30-50 CNY/tonne. (Tianjin traders 6540, down 30; Rizhao 6590, down 30; Zhangjiagang traders 6550, down 30; Guangzhou traders 6550-6570, down 50; and Xiamen not available). 

Rapeseed oil: U.S. soybean futures further climbed on Monday. Rapeseed oil futures keep ring but actually hover around the previous close on China’s Zhengzhou Commodity Exchange today. Spot rapeseed oil prices steady at 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%. And soybean oil and palm oil inventories have also declined. These are bullish to rapeseed oil market. Rapeseed oil prices will likely stay at the high level owing to tight supplies and as funds continue increasing long positions in oils futures. But 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 with a rise of 50 CNY/tonne today. The cost of importing soybean is climbing up due to a surge in U.S. soybean futures. Traders said that Malaysian palm oil exports are expected to increase by 10%-12% from September 1^st to 15^th. And oils market will keep strengthening due to global inflation expectations. 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 oil. 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 ¥6.82)