Today (Sep 18), 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 delivering soybeans at Shandong ports due to strict commodity inspection. In addition, imported non-GM soybeans are in adequate supplies, and new-season domestic soybeans have been on the market in some regions. But on the demand side, downstream buyers are not active and soybean shipments are at a slow pace. Besides, China is still purchasing U.S. and Brazilian soybeans, which will increase supply in the market. Overall, imported soybean market is predicted to steady with slight declines in the near term. Participants can keep an eye on commodity inspections.

Cottonseed: Cottonseed prices decline by 0.01 CNY/kg in several regions today. Cottonseed is in temporary shortage, and both oils and meals are rising this week, which tentatively supports cottonseed market. 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. Therefore, the price declines of cottonseed may probably become a bit deeper after new cottonseed intensively enters market.

Oils: 

Summary: U.S. soybean futures sharply rose on Thursday on brisk demand from China and fund-driven buying, and oils futures continue advancing on China’s Dalian Commodity Exchange today. In the spot markets, soybean oil goes up 120-200 CNY/tonne and palm oil up 160 CNY/tonne, in tepid trade. Hefty gains in U.S. soybean futures further raise the import cost of soybeans. Malaysia’s palm oil production in September 1-15 rose by less than 3% month on month, so supplies of oils are not a burden at present. In addition, domestic buyers are still stocking up for holidays, and funds are actively buyers of oils futures on an inflation expectation. These combine together to push oils futures for further rises, so the market is predicted to keep strong in the short run. But domestic soybean crush maintains at a high level and Chinese buyers will soon finish stocking up for holidays, and U.S. soybeans are about to go marketing. Besides, funds have boosted their net long in U.S. soybeans to a high level of 233,000 lots. Hence, it is necessary to get control of positions while being bullish.

Soybean oil: GB Grade I soybean oil is mainly priced at 7,540-7,620 CNY/tonne in domestic coastal areas, a rise of 120-200 CNY/tonne. (Tianjin traders 7540; Rizhao traders 7550; Zhangjiagang traders 7600-7610; and Guangzhou traders 7620).

Palm oil: RBD palm olein is mainly priced at 6,840-6,910 CNY/tonne in coastal areas, mostly up 160 CNY/tonne. (Tianjin traders 6840-6860, up 160; Rizhao 6910, up 160; Zhangjiagang traders 6890, up 160; Guangzhou traders 6860, up 160; and Xiamen not available). 

Rapeseed oil: U.S. soybean futures continued surging on Thursday on robust demand from China, and oils futures also extend their rally on China’s commodity exchanges today. Spot rapeseed oil prices go up 190-240 CNY to 9,570-9,690 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. But the consumption of rapeseed oil is affected by its widening price gap with soybean oil and palm oil. Overall, owing to tight supplies and as funds continue increasing long positions in oils futures, rapeseed oil market is predicted to stay at high prices and in tepid trade.

Cottonseed oil: Cottonseed oil prices stay stable today. A skyrocketing in U.S. soybean pushes up the cost for China importing soybean. And US soybean futures surged on Thursday on China’s brisk demand and large buying. Oil futures on China’s Dalian Commodity Exchange rise broadly today. In the spot market, soybean oil jumps by 120-200 CNY/tonne and palm oil is 160 CNY/tonne higher. Due to an active buying under inflation expectations, bulk oils market shoots up. 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. It is predicted that short-term cottonseed oil market will also keep steady at highs.

(USD $1=CNY ¥6.76)