Today (Sep 29), 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 keep steady today. Cottonseed is still in temporary shortage, which tentatively supports cottonseed market. But the delivery of cottonseed is still under impact of the COVID-19 outbreak in Xinjiang. Besides, new cottonseed starts entering market, so the supply is increasing. Moreover, the operation rate stays at a low level in crushing mills as cottonseed by-products move weakly and factories are wary of buying cottonseed. Therefore, cottonseed market is likely to fluctuate fractionally.

Oils: 

Summary: U.S. soybean futures fell on Monday as weather conditions would be favorable for crop maturing and harvest. The USDA said the U.S. soybean harvest was 20% complete by Sept 27, compared to 6% a year earlier. Oils futures fluctuate to drop but actually stay below the previous close on China’s Dalian Commodity Exchange today. In the spot markets, soybean oil fluctuates by 10-30 CNY/tonne and palm oil mostly goes up 10-30 CNY/tonne in tepid trade. The deposit for futures has been raised from September 29 in preparation for the National Day holidays, so the outflow of capital ahead of the holidays will continue influencing the market. However, 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. The consumption of soybean oil in feed has also seen a significant increase as manufacturers have replaced corn with wheat. Besides, the demand for soybean oil, especially in the run up to the holidays, has also arisen sharply as rapeseed oil is in low stocks and high prices. In addition, domestic palm oil stockpiles are also at a low level, which is supporting oil prices. In the absence of fresh cues, the oils market is expected to follow futures to fluctuate frequently and narrowly before the holidays. Funds are likely to grasp a chance to re-enter the market under a lingering inflation expectation across the globe, so oils prices may have a gaining momentum after the market digests the pressure from U.S. soybean selling.

Soybean oil: GB Grade I soybean oil is mainly priced at 7,180-7,350 CNY/tonne in domestic coastal areas, fluctuating by 10-30 CNY/tonne. (Tianjin traders 7180-7200; Rizhao traders 7210; Zhangjiagang traders 7240; and Guangzhou traders 7330-7350).

Palm oil: RBD palm olein is mainly priced at 6,370-6,470 CNY/tonne in coastal areas, mostly up 10-30 CNY/tonne. (Tianjin traders 6450-6470, up 10; Rizhao not available; Zhangjiagang traders 6420, up 30; Guangzhou traders 6370-6380, up 20; and Xiamen not available).  

Rapeseed oil: U.S. soybean futures fell on Monday, and rapeseed oil stay around the previous close, albeit a decline, on China’s Zhengzhou Commodity Exchange today. Spot rapeseed oil prices fluctuate by 10-30 CNY to 9,360-9,450 CNY/tonne in coastal regions in tepid trading. The market is gradually under pressure from U.S. soybean harvests, and due to massive soybean imports, domestic oil mills are maintaining high operation rates, so that soybean crush hit a historical single-week high of 2.27 mln tonnes last week. Besides, funds are withdrawing now for the upcoming National Day holidays, and the consumption of rapeseed oil is affected by its widening price spread with soybean oil and palm oil. But 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. Overall, short-term rapeseed oil prices still fluctuate at high levels.

Cottonseed oil: Cottonseed oil prices keep steady with a decrease of 100 CNY/tonne in individual regions today. U.S. soybean harvest is faster than the same period last year on favorable weather, gradually putting pressure on the seasonal marketing. Moreover, the outflow of capital before holidays over fears about resurgence of COVID-19 around the world further affects bulk oils market. In addition, with the marketing of new cottonseed, buyers are waiting for new cottonseed oil, which may curb cottonseed oil price. But the operation rate in cottonseed oil plants still stay at a low level in the near stage, boosting cottonseed oil market. It is predicted that short-term market will move with fluctuations.

(USD $1=CNY ¥6.82)