Today (Sep 22), the market for oilseeds and oils in China is shown as follows:

Oilseeds:

Imported soybean: Non-GM Canadian soybeans are priced 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 going into the market. But on the demand side, downstream buyers are not active and soybean shipments are at a slow pace. Besides, China is still importing soybeans due to handsome crush margins, 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 decrease by 0.01-0.03 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. Besides, soybean oil and soybean meal decline today. 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. Therefore, cottonseed market stops rising and moves with fluctuations.

Oils: 

Summary: U.S. soybean futures plunged on Monday as rapidly rising coronavirus cases could lead to fresh lockdowns in some countries and investors sought safe-haven assets such as the U.S. dollar, and also on lower-than-expected quantity inspected for exports and higher-than-forecast crop good-to-excellent conditions. Funds take profit and reduce position massively after oils after oils futures rose to a multi-year high, which sends oils futures to drop sharply on China’s Dalian Commodity Exchange today. In the spot markets, soybean oil goes down 120-150 CNY/tonne and palm oil down 170-180 CNY/tonne, both in tepid trade. China is buying U.S. and South American soybeans briskly due to handsome crush margins. Domestic soybean crush rose 10% to hit a single-week high of 2.18 mln tonnes last week, and some 40,000 tonnes of imported crude soybean oil also arrived at ports in East China last week, so soybean oil stocks rose further by 5% to 1.33 mln tonnes. Margins for importing crude Argentine soybean oil have been profitable now after domestic oils futures continue rushing higher, and domestic leading companies are also buying Brazilian soybean oil recently. And domestic buyers are to finish stocking up for the holidays in one week. Traders have strong sentiment in booking profits, and the oils market goes into the correction territory.

Soybean oil: GB Grade I soybean oil is mainly priced at 7,500-7,610 CNY/tonne in domestic coastal areas, a decline of 120-150 CNY/tonne. (Tianjin traders 7500; Rizhao traders 7530; Zhangjiagang traders 7580; and Guangzhou traders 7600-7610). 

Palm oil: RBD palm olein is mainly priced at 6,760-6,800 CNY/tonne in coastal areas, mostly down 170-180 CNY/tonne. (Tianjin traders 6760-6790, down 170; Rizhao not available; Zhangjiagang traders 6800, down 180; Guangzhou traders 6760-6790, down 180; and Xiamen not available). 

Rapeseed oil: U.S. soybean futures slumped on Monday on fears of the COVID-19 spread, and rapeseed oil physically trade below the previous close, albeit some rises, on China’s Zhengzhou Commodity Exchange today. Spot rapeseed oil prices edge down 10-20 CNY to 9,760-9,830 CNY/tonne in coastal regions in tepid trading. In view of huge soybean imports and in order to satisfy the festival demand, Chinese oil millers picked up soybean crush to a single-week historical high of 2.18 mln tonnes last week and may raise it to 2.19 mln tonnes this week. Moreover, a widening price spread of rapeseed oil with soybean oil and palm oil is also affecting the overall consumption of the rapeseed oil itself and dragging down its own market. However, Canada has walked away from free trade talks with China, and the souring relations will further limit the trade of rapeseed between these two countries. Domestic rapeseed oil stocks have been at a historical low. Overall, rapeseed oil is predicted to fluctuate at the high level and buyers can wait for the moment.

Cottonseed oil: Cottonseed oil prices further increase by 100-300 CNY/tonne today. Old cottonseed is still pricey before new cottonseed enters market. And most of cottonseed oil mills plan to resume the operation after new cottonseed goes marketing, so the operation rate will still stay low in the near term. But middle and downstream enterprises need to stock up ahead of Mid-Autumn Festival and National Day holiday. Thus, cottonseed oil market is boosted by these factors. On the other side, U.S. soybean futures tumbled on the swiftly accelerating second wave of the COVID-10 outbreak in Europe and America. And oil futures on China’s Dalian Commodity Exchange today also sharply decline due to a profit taking. In the spot market, soybean oil down by 120-150 CNY/tonne and palm oil is 170-180 CNY/tonne lower. Furthermore, buyers are waiting for the marketing of new cottonseed oil. Accordingly, cottonseed oil trading is projected to be tepid after a price hike today.

(USD $1=CNY ¥6.79)