Today (Sep 16), the market for oilseeds and oils in China is shown as follows:

Oilseeds:

Imported soybean: Non-GM Russian soybeans are priced at 5,100 CNY/tonne at Tianjin port. Traders are not offering at Shandong ports due to strict commodity inspections. Moreover, non-GM imported soybeans are in adequate supplies, and new-season domestic soybeans have been on the market in some regions and will flow into the market in early October. Besides, China is still purchasing U.S. soybeans, which will increase supply in the market. And the market is in slow shipment now, as downstream buyers are staying on the sidelines. 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 were lower on Tuesday on better weather conditions across the producing regions and on profit-taking. Oils futures swing to adjust and stay above the previous close on China’s Dalian Commodity Exchange today. In the spot markets, soybean oil partially goes up 10 CNY and palm oil mostly up 10 CNY/tonne, attracting some low-level purchases. Dalian oils futures are in the correction after hefty gains earlier this week, so that domestic spot oils prices also follow to adjust. But soybean import cost is still high as U.S. soybean futures keep strong on robust demand from China. Malaysia’s palm oil exports for September 1-15^th rose 12% month on month, and China’s soybean oil stockpiles are not under pressure. In addition, a global inflation expectation is in focus, and funds are also buying dips. Hence, the oils market still has some support and will probably keep range-bound and strengthening. Overall, as domestic soybean crush remains stubbornly high, and U.S. soybeans are about to go marketing and Chinese buyers will soon complete stocking up for holidays, domestic oils market may have some risks of corrections.

Soybean oil: GB Grade I soybean oil is mainly priced at 7,150-7,250 CNY/tonne in domestic coastal areas, a partial rise of 10 CNY/tonne. (Tianjin traders 7170; Rizhao traders 7150; Zhangjiagang traders 7220; and Guangzhou traders 7230-7250).

Palm oil: RBD palm olein is mainly priced at 6,560-6,610 CNY/tonne in coastal areas, mostly up 10 CNY/tonne. (Tianjin traders 6560-6570, up 10; Rizhao 6610, up 10; Zhangjiagang traders 6570, up 10; Guangzhou traders 6570, up 10; and Xiamen not available). 

Rapeseed oil: U.S. soybean futures ended lower on Tuesday, and rapeseed oil futures swing to decline on China’s Zhengzhou Commodity Exchange today. Spot rapeseed oil prices go down 10-20 CNY to 9,190-9,280 CNY/tonne in coastal regions in tepid trading. Domestic soybean crush remains stubbornly high owing to enormous soybean arrivals at ports, and buyers are cautious in rapeseed oil market due to its much higher prices than soybean oil and palm oil, which are dragging down rapeseed oil prices. However, domestic rapeseed crush has been at a low level as its imports is constrained amid tensions between Beijing and Ottawa. Oil mills are mainly fulfilling contracts now as rapeseed oil stocks stay at a historical low in coastal regions. Overall, domestic rapeseed oil market is predicted to have little space for declines and may fluctuate to adjust at the high level. Buyers can wait on the sidelines.

Cottonseed oil: Cottonseed oil prices stay stable with a rise of 50 CNY/tonne today. U.S. soybean futures pared gains on Tuesday on better weather across crop area and profit taking. Oil futures on China’s Dalian Commodity Exchange go with fluctuations today and move above the previous closing price. In the spot market, soybean oil partly up by 10 CNY/tonne and palm oil mostly up by 10 CNY/tonne. Accordingly, bulk oils market still keeps strengthening. 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 fluctuate to stay strong.

(USD $1=CNY ¥6.78)