Today (Sep 25), 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. Holders are not making bulk shipments at Shandong ports under strict commodity inspections, and non-GM imported soybeans are in huge supplies. In addition, new domestic soybeans are going marketing and with higher quality, so that the market also turns the demand to domestic soybeans. In addition, China is purchasing soybean briskly in foreign markets, which is likely to increase domestic supply and bearish to imported soybean 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 will pare gains.

Oils: 

Summary: U.S. soybean futures further slumped on Thursday as investors took profits on harvest pressure, especially with higher-than-expected crop yield. Oils futures post losses on China’s Dalian Commodity Exchange today, of which soybean oil stays above the previous close and palm olein is just edging low. In the spot markets, soybean oil partially fluctuates by 10-60 CNY/tonne and palm oil mostly down by 10-30 CNY/tonne; both are predicted to attract some low-level purchases but remain in tepid trade. The second COVID-19 wave across Europe has triggered funds to sell off stocks and domestic funds are flowing out ahead of the 8-day National Day holidays. In addition, domestic soybean crush has hit a fresh high under huge soybean arrivals at ports, so that soybean oil inventories keep rising. In the meantime, as domestic buyers will very soon complete stocking up for holidays, and U.S. farmers ramp up soybean harvests, domestic oil market will follow futures to adjust. But in the wake of a decline in meal and oil futures, net crush margins for U.S. soybeans and margins for Argentine crude soybean oil have gone negative, which will help slow down declines in oils prices and fluctuate to adjust instead. The overall oils prices are expected to have some upward potential on a lingering global inflation expectation and as the market will gradually digest the U.S. soybean harvest pressure.

Soybean oil: GB Grade I soybean oil is mainly priced at 7,120-7,250 CNY/tonne in domestic coastal areas, fluctuating by 10-60 CNY/tonne. (Tianjin traders 7120; Rizhao traders 7160; Zhangjiagang traders 7160; and Guangzhou traders 7230-7250). 

Palm oil: RBD palm olein is mainly priced at 6,330-6,450 CNY/tonne in coastal areas, mostly down 10-30 CNY/tonne. (Tianjin traders 6390, flat; Rizhao 6450, down 10; Zhangjiagang traders 6370, down 20; Guangzhou traders 6330-6350, down 30; and Xiamen not available).

Rapeseed oil: U.S. soybean futures plunged in overnight trading as investors took profit on pressure in harvest, and rapeseed oil futures extend but also slow down losses on China’s Zhengzhou Commodity Exchange today. Spot rapeseed oil prices edge down 10 CNY to 9,360-9,460 CNY/tonne in coastal regions in tepid trading. China’s weekly soybean crush has hit a fresh high with massive soybean arrivals at ports, and domestic buyers are cautious in rapeseed oil market due to its much higher prices than soybean oil and palm oil. These are weighing down rapeseed oil market. Nevertheless, China’s rapeseed imports are constrained amid tensions between Ottawa and Beijing, so that rapeseed crush remains small and millers can only focus on carrying out contracts. In the short term, rapeseed oil prices will probably fluctuate at the high level to adjust.

Cottonseed oil: Cottonseed oil prices mainly keep steady and fall by 200 CNY/tonne in several regions today. Global stocks tumble on the second wave of COVID-19 break in Europe and America, causing a sell off. And it also sees a large selling in China before the National Day holidays. Besides, soybean crush hit a record high amid strong shipments to China, thereby soybean oil stocks keep rising. But the stockpiling before Mid-Autumn Festival and National Day is nearly ended, and the pressure from marketing of new U.S. soybean is emerging. Bulk oils market keeps paring gains as funds withdraw intensively. In addition, buyers are waiting for the marketing of new cottonseed oil, leading to a drop in cottonseed oil price. But the operation rate in cottonseed oil plants will stay at a low level in the near stage, which may bolster cottonseed oil market. It is predicted that short-term market will move with fluctuations.

(USD $1=CNY ¥6.81)