Today (Sep 28), 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 of lower prices than non-GM soybeans, 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 0.02 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, 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 rose last Friday, and oils futures also advance on China’s Dalian Commodity Exchange today. In the spot markets, soybean oil goes up 10-90 CNY/tonne and palm oil up 70-90 CNY/tonne, attracting some low-level purchases. While soybean crush rose 4% to hit a fresh single-week high of 2.27 mln tonnes last week, soybean oil stockpiles posted a much lower-than-forecast rise of 0.42% to 1.3365 mln tonnes. Besides, the demand for soybean oil in feed has also seen a significant increased since rapeseed oil has been in low stocks and high prices. Meanwhile, the consumption of small-to-medium-sized packaged soybean oil is also in huge quantity, and many domestic companies have also purchased packaged soybean oil for employees as a corporate welfare for the holidays. Shandong Province saw a sharp decline in soybean oil stocks last week. On palm oil side, strong exports will constrain the rise in Malaysia’s palm oil stockpiles, and China’s palm oil stocks also remain low at present, which also lend support to the market. However, the market is still digesting pressure from U.S. soybean harvests, and domestic funds are cautious owing to the upcoming Golden Week vacation. On the whole, domestic oils market is predicted to have limited rises and may follow futures to fluctuate frequently ahead of the holidays.

Soybean oil: GB Grade I soybean oil is mainly priced at 7,220-7,350 CNY/tonne in domestic coastal areas, a rise of 10-90 CNY/tonne. (Tianjin traders 7220; Rizhao traders 7280; Zhangjiagang traders 7280; and Guangzhou traders 7340-7350).

Palm oil: RBD palm olein is mainly priced at 6,420-6,510 CNY/tonne in coastal areas, mostly up 70-90 CNY/tonne. (Tianjin traders 6510, up 90; Rizhao not available; Zhangjiagang traders 6460, up 70; Guangzhou traders 6420, up 70; and Xiamen not available). 

Rapeseed oil: U.S. soybean futures rose last Friday, but rapeseed oil futures pare gains after opening high on China’s Zhengzhou Commodity Exchange today. Spot rapeseed oil prices fluctuate by 20-30 CNY to 9,330-9,440 CNY/tonne in coastal regions in tepid trading. China’s soybean crush rose 4% weekly to 2.27 mln tonnes last week, for some mills were working at full capacity under huge soybean imports and in order to meet the festival demand. Soybean oil output has thus been increasing, while buyers will complete festival buying, which are dragging down rapeseed oil prices. 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 dropped by 6.46% weekly to 207,000 tonnes last week, which is still support the market. Overall, short-term rapeseed oil prices still fluctuate at high levels and buyers can wait for the moment.

Cottonseed oil: Cottonseed oil prices keep steady today. The inventory of Malaysian palm oil may not rally against the backdrop of good performance in export. And palm oil stocks in China also stay at a low level. Besides, some enterprises give staff edible oil as a holiday benefit, which accounts for a large share of the market. And the volume of oil used in feed also is also much higher than the previous years. In spot market, soybean oil up by 10-90 CNY/tonne and palm oil up by 70-90 CNY/tonne. All these factors have offered support to oils market. 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, boosting cottonseed oil market. It is predicted that short-term market will fluctuate in a narrow range.

(USD $1=CNY ¥6.83)