Today (Sep 21), the market for oilseeds and oils in China is shown as follows:

Oilseeds:

Imported soybean: Non-GM Canadian soybeans are priced lower by 300 CNY at 4,900 CNY/tonne at Tianjin port. Traders are not delivering soybeans at Shandong ports due to strict commodity inspection. And 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 bought at least 17-18 vessels of U.S. soybeans and 8-10 vessels of new Brazilian soybeans last week, 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 increase by 0.03-0.05 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, affecting the price rises of cottonseed.

Oils: 

Summary: U.S. soybean futures continued rallies on strong export data, as it was said that China had bought at least 1 mln tonnes of U.S. soybeans since September 10^th. And Canada was reported to have walked away from free-trade talks with China. Hence, oils futures also continue rising on China’s Dalian Commodity Exchange today, bolstered by strong bullish sentiment in the market. In the spot markets, soybean oil increases by 90-150 CNY/tonne and palm oil by 80-100 CNY/tonne, attracting some low-level purchases. The blowout of U.S. soybean futures leads to a further rise in import coast. And domestic buyers are still stocking up for the holidays, so there is no pressure from the supply side now. Besides, funds are aggressive in going long due to an inflation expectation. Hence, the oils market is predicted to keep a strong trend in the near term. But last week, as soybean crush rose by 10% to a historical high of 2.18 mln tonnes and as some 40,000 tonnes of imported crude soybean oil arrived at port in East China, domestic soybean oil stockpiles increased by 5% weekly to 1.33 mln tonnes. And margins for importing crude Argentine soybean oil have been profitable now after domestic oils futures continue rushing higher. And domestic buyers are to finish stocking up for the holidays in one week. Therefore, it is still necessary to pay attention to these underlying bearish factors.

Soybean oil: GB Grade I soybean oil is mainly priced at 7,620-7,720 CNY/tonne in domestic coastal areas, a rise of 90-180 CNY/tonne. (Tianjin traders 7620-7640; Rizhao traders 7650; Zhangjiagang traders 7700-7720; and Guangzhou traders 7720). 

Palm oil: RBD palm olein is mainly priced at 6,930-6,980 CNY/tonne in coastal areas, mostly up 90-100 CNY/tonne. (Tianjin traders 6930-6950, up 100; Rizhao not available; Zhangjiagang traders 6980, up 100; Guangzhou traders 6940-6950, up 90; and Xiamen not available). 

Rapeseed oil: U.S. soybean futures traded higher last Friday on brisk export demand, and oils futures also extend their rally on China’s commodity exchanges today. Spot rapeseed oil prices go up 140-200 CNY to 9,770-9,830 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. Domestic oil millers are mainly fulfilling contracts now and rapeseed oil stocks fell to 220,000 tonnes in coastal regions last week. Overall, domestic rapeseed oil market is predicted to stay at high prices in the short run on tight supplies and as funds are aggressive in going long in oils futures due to an inflation expectation, but the market will be in thin trade as the demand has been limited by high prices and buyers will finish stocking up for the festival in one week.

Cottonseed oil: Cottonseed oil prices increase by 150-400 CNY/tonne today. A skyrocketing in U.S. soybean pushes up the cost for China importing soybean. And US soybean futures keep soaring on good performance in export. Market still bulls the oils prices. Oil futures on China’s Dalian Commodity Exchange also rise sharply today. In the spot market, soybean oil jumps by 90-150 CNY/tonne and palm oil is 80-100 CNY/tonne higher. Due to an active buying under 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 cautious in raising price as buyers are waiting for the marketing of new cottonseed oil. But after a consecutive surge in bulk oils market, cottonseed oil price also goes up today.

(USD $1=CNY ¥6.76)