Today (Sep 23), the market for oilseeds and oils in China is shown as follows:

Oilseeds:

Imported soybean: Non-GM Ukrainian soybeans are priced at 5,100 CNY/tonne at Tianjin port. Traders are almost 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 U.S. and South American 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 decrease by 0.02 CNY/kg in several regions today. Cottonseed is in temporary shortage, 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, both oils and meals have been declining in recent two days due to the second wave of COVID-19 in Europe and America. 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 traded further lower on Tuesday, as soybean harvest was at 6%, compared to 2% last year. And oils futures also extend losses on the Dalian Commodity Exchange today, but actually narrow down losses now. In the spot markets, soybean oil goes down 30-100 CNY/tonne and palm oil down 40-50 CNY/tonne, in tepid trade. Global stocks tumbled on the second wave of coronavirus developments in the Europe and the U.S.. The round of declines in domestic oils is mainly due to the outflow of funds and also fueled by bearish fundamentals. China is briskly purchasing U.S. and South American soybeans now 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, so that domestic importers are also buying up crude soybean oil from South America. Besides, domestic buyers will very soon finish stocking up for the holidays, and U.S. soybeans are about to go marketing in huge quantities. These combine to drag down oils market. The fund-driven oil market will see more fluctuations, so participants need to remain cautious.

Soybean oil: GB Grade I soybean oil is mainly priced at 7,340-7,450 CNY/tonne in domestic coastal areas, a decline of 30-100 CNY/tonne. (Tianjin traders 7340-7360; Rizhao traders 7390; Zhangjiagang traders 7370; and Guangzhou traders 7440-7450). 

Palm oil: RBD palm olein is mainly priced at 6,610-6,670 CNY/tonne in coastal areas, mostly down 40-50 CNY/tonne. (Tianjin traders 6610-6630, down 40; Rizhao 6670, down 50; Zhangjiagang traders 6630, down 50; Guangzhou traders 6610, down 50; and Xiamen not available). 

Rapeseed oil: Global stock markets slid on the second wave of coronavirus development in Europe and the U.S., which also weighs down commodity markets. U.S. soybeans fell on Tuesday, and oils futures also extend losses on China’s commodity exchanges today. Spot rapeseed oil prices edge down 50-90 CNY to 9,590-9,670 CNY/tonne in coastal regions in tepid trading. China is briskly snapping up U.S. and South American soybeans due to good crush margins, so that domestic weekly soybean crush has hit a fresh high. And domestic buyers are cautious in the rapeseed oil market in view of its much higher prices that soybean oil and palm oil. But 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 stay at a historical low. Overall, rapeseed oil market is predicted to have little space for declines and may fluctuate to adjust at high levels, and buyers can wait for the moment.

Cottonseed oil: Cottonseed oil prices keep steady and fall by 100 CNY/tonne in several regions today. Global stocks tumble on the second wave of COVID-19 break in Europe and America. And corn harvested is 6%, higher than 2% in the same period last year. U.S. soybean futures on CBOT on Tuesday and oil futures on Dalian Commodity Exchange further declined. In the spot market, soybean oil down by 30-100 CNY/tonne and palm oil down by 40-50 CNY/tonne. The bears in fundamentals are unfavorable for bulk oils market. Besides, buyers are waiting for the marketing of new cottonseed oil, leading to a drop in cottonseed oil price. But old cottonseed is still pricey before new cottonseed enters market, so the operation rate in factories will still stay low in the near term. Accordingly, short-term cottonseed oil market is projected to fluctuate at high levels.

(USD $1=CNY ¥6.80)