Today (Sep 17), the market for oilseeds and oils in China is shown as follows:

Oilseeds:

Imported soybean: Non-GM Canadian soybeans are priced at 5,200 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. and Brazilian soybeans, which will increase supply in the market. And the market is in slow shipment now, as downstream buyers are awaiting the sales of domestic new soybeans. 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 probably become deeper after new cottonseed intensively enters market.

Oils: 

Summary: U.S. soybean futures surged on Wednesday on robust demand from China and as funds were active buyers, and crude oil prices also rose 4.9%. Oils futures follow to post sharp gains on China’s Dalian Commodity Exchange today. In the spot markets, soybean oil goes up 150-250 CNY/tonne and palm oil up 110-130 CNY/tonne. The most-active U.S. soybean futures contract stand above 1,000 cents, which will continue lifting the cost of import. And domestic soybean oil stocks are not under pressure, and buyers are still stocking up for the holidays. The bull are still positive about the market outlook and funds are active buyers under low stockpiles, high basis, inflation expectations. The overall oils market is predicted to keep a strong trend in the short term. But 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, it is still necessary to get control of positions.

Soybean oil: GB Grade I soybean oil is mainly priced at 7,150-7,250 CNY/tonne in domestic coastal areas, a rise of 150-250 CNY/tonne. (Tianjin traders 7260; Rizhao traders 7350; Zhangjiagang traders 7440; and Guangzhou traders 7470-7490).

Palm oil: RBD palm olein is mainly priced at 6,720-6,770 CNY/tonne in coastal areas, mostly up 110-130 CNY/tonne. (Tianjin traders 6720, up 130; Rizhao 6770, up 130; Zhangjiagang traders 6750, up 130; Guangzhou traders 6710-6730, up 110; and Xiamen not available). 

Rapeseed oil: U.S. soybean futures surged on Wednesday, and oils futures also move sharply higher on China’s commodity exchanges. Spot rapeseed oil prices go up 150-170 CNY to 9,360-9,450 CNY/tonne in coastal regions in tepid trading. Domestic rapeseed crush has been at a low level as imports are constrained amid tensions between Beijing and Ottawa. Oil millers are mainly fulfilling contracts now as rapeseed oil stocks see a year-on-year decline of 46% at 240,000 tonnes in coastal regions. And domestic soybean oil and palm oil stockpiles are also under no pressure. Overall, 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 today. U.S. soybean futures sharply rose on Wednesday on climbing import cost and China’s brisk demand. And oil futures on China’s Dalian Commodity Exchange also surge today. In the spot market, soybean oil jumps by 150-250 CNY/tonne and palm oil is 110-130 CNY/tonne higher. Due to low inventory, high basis and inflation expectations, 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 keep steady at highs.

(USD $1=CNY ¥6.77)