Today (Sep 24), 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. 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. 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 0.01 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 fell on Wednesday as the harvest of U.S. soybeans kept the prices under check, and oils futures continue to post sharp losses on China’s Dalian Commodity Exchange today. In the spot markets, soybean oil goes down 80-120 CNY/tonne and palm oil down 110-160 CNY/tonne. As global stock market fell sharply on concerns over the resurgence of the coronavirus pandemic in Europe, and due to the withdrawal of funds, domestic oils futures keep falling after previous fund-driven surges. Moreover, domestic soybean crush rose 10% to hit a single-week high of 2.18 mln tonnes last week due to huge soybean imports, 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. Besides, Chinese importers also bought some 160,000 tonnes of crude soybean oil on Monday as Argentine crude soybean oil have been lucrative earlier this week. Domestic buyers are about to finish stocking up for the holidays and U.S. farmers will harvest soybeans at full swing soon, as well as poor performance in outside markets, so domestic oils market keep falling under pressure. Buyers can temporarily stay on the sidelines.

Soybean oil: GB Grade I soybean oil is mainly priced at 7,130-7,250 CNY/tonne in domestic coastal areas, a decline of 80-120 CNY/tonne. (Tianjin traders 7130; Rizhao traders 7190; Zhangjiagang traders 7180; and Guangzhou traders 7250). 

Palm oil: RBD palm olein is mainly priced at 6,390-6,460 CNY/tonne in coastal areas, mostly down 110-160 CNY/tonne. (Tianjin traders 6390, down 140; Rizhao 6460, down 110; Zhangjiagang traders 6390, down 140; Guangzhou traders 6370, down 160; and Xiamen not available). 

Rapeseed oil: As global stock market fell sharply on concerns over the resurgence of the coronavirus pandemic in Europe and investors took profits, U.S. soybean futures fell on Wednesday, and oils futures also extend their losses on China’s commodity exchanges today. Spot rapeseed oil prices drop 120-160 CNY to 9,330-9,410 CNY/tonne in coastal regions in tepid trading. The market begins to focus on the harvest of U.S. soybeans. Domestic soybean crush has hit a historical high due to huge soybean imports, and the consumption of rapeseed oil is also affected by its widening price spread with 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, and oil millers are mainly fulfilling contracts now. Overall, rapeseed oil market is predicted to decline to adjust in the near term, and buyers can wait for the moment.

Cottonseed oil: Cottonseed oil prices mainly 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. U.S. soybean on CBOT further declined on Wednesday on fears about crop harvest. Oil futures on Dalian Commodity Exchange sharply drop today. In the spot market, soybean oil down by 80-120 CNY/tonne and palm oil down by 110-160 CNY/tonne. Bulk oils market keeps paring gains as funds withdraw intensively. Besides, buyers are waiting for the marketing of new cottonseed oil, leading to a drop in cottonseed oil price. Buyers can stay on the sideline.

(USD $1=CNY ¥6.80)