Today (Sep 27), the market for oilseeds and oils in China is shown as follows:

Oilseeds:

Imported soybean: Non-GM Canadian soybeans are priced at 4,900-5,200 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 an improvement in 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 0.04 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 days. And cottonseed oil mills are not active in buying cottonseed as old cottonseed is pricey while a little new cottonseed start entering market. Many factories intend to wait for the marketing of new cottonseed. Therefore, cottonseed market will pare gains.

Oils: 

Summary: U.S. soybean futures edged up on Friday as the bulls went bargain buying. Oils futures also climbed in after-hour trade on China’s Dalian Commodity Exchange on Friday, bouncing back from sharp declines, and not open on Sunday today. In the spot markets, oils prices are almost not available with a partial rise of 10-40 CNY/tonne, in tepid trade. With massive soybean arrivals at ports and in order to satisfy the demand ahead of the National Day holidays, some oil mills are operating at full capacity, so soybean crush rose 4% weekly to 2.27 mln tonnes last week. And buyers will finish festival buying soon. Hence, soybean oil stocks are expected to mount higher. The oils market is likely to rebound technically after this week’s declines, but will have limited rises and follow futures to fluctuate frequently owing to pressure from U.S. soybean harvests. In the mid-to-long term, funds are likely to go into the market again on a global inflation expectation and as the market gradually digests pressure from U.S. soybean harvests, and at that time, domestic soybean oil prices will likely to pick up an uptrend. The specific point-in-time will depend on U.S. soybean harvest and when funds will go back into the market.

Soybean oil: GB Grade I soybean oil prices are almost not available on Sunday today. (Tianjin traders Y01+250; Rizhao traders N/A; Zhangjiagang traders N/A; and Guangzhou traders Y01+370/400). 

Palm oil: RBD palm oleinprices are almost not available on Sunday today. (Tianjin traders P2101+550; Rizhao N/A; Zhangjiagang traders N/A; Guangzhou traders P2101+460/480; and Xiamen N/A).

Rapeseed oil: U.S. soybean futures rose on Friday, and China’s Zhengzhou Commodity Exchange is closed on Sunday today. Spot rapeseed oil prices partially go up 20-50 CNY to 9,400-9,500 CNY/tonne in coastal regions in tepid trading. 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. Rapeseed oil stocks are 46,000 tonnes in domestic coastal regions, a sharp decline of 45.9% from a year earlier. But under massive soybean arrivals at ports, domestic soybean crush rose 4% weekly to hit a fresh record of 2.27 mln tonnes. And buyers have almost completed replenishment now. Overall, rapeseed oil market is predicted to stay at the high level on tight supplies and as funds continue going long in oils futures.

Cottonseed oil: Cottonseed oil prices mainly keep steady and further fall by 100-200 CNY/tonne in several regions today. Soybean crush records new high amid intensive arrival at Chinese ports, which increases by 4% to 2.27 mln tonnes compared to the previous week. Thus, soybean oil output keeps rising. But the stockpiling before holidays is nearly ended. Bulk oils market sharply decline despite a bound in the weekend. 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. It is predicted that short-term market will not drop too much.

(USD $1=CNY ¥6.81)