Today (Sep 30), 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. While imported non-GM soybeans are in adequate supplies, new domestic soybeans are under harvests and of declining prices, so imported soybeans have no price advantage and purchasers have also turned to domestic soybeans. In addition, China ramped up soybean purchases earlier, which is likely to further expand the supply. Overall, imported soybean market is predicted to steady with slight declines in the near term.

Cottonseed: Cottonseed prices decline by 0.03-0.06 CNY/kg 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, short-term cottonseed market will continue paring gains.

Oils: 

Summary: U.S. soybean futures further declined on Tuesday, weighed down by harvest pressure and disappointing export sales. As Malaysia’s largest producing palm oil state Sabah allowed palm oil plantations to continue operation during the two-week lockdown and the upcoming one-week holidays in China would also cast a shadow over the demand, Malaysia’s palm oil futures eased on Tuesday. And crude oil prices were weakening. Hence, oils futures all drop drastically on China’s Dalian Commodity Exchange today. In the spot markets, soybean oil goes down 100-190 CNY/tonne and palm oil down 140-160 CNY/tonne, both in tepid trade. The sharp decline in oils prices is attributed to concerns over the resurgence of the coronavirus cases in Europe and as funds close out positions ahead of the holidays. And there is little change in fundamentals. Although weekly soybean crush rose to hit a historical high, soybean oil inventories only rose slightly.There is huge demand for small-and-medium packaging soybean oil in the market and growing demand in feed. Meanwhile, rapeseed oil and palm oil stockpiles are also at low levels. The oils prices may see a rally as funds may go back into the market under a lingering global inflation expectation, but participants need to remain cautious when the market is digesting the pressure of U.S. soybean sales.

Soybean oil: GB Grade I soybean oil is mainly priced at 7,060-7,260 CNY/tonne in domestic coastal areas, a decline of 100-190 CNY/tonne. (Tianjin traders 7060; Rizhao traders 7060; Zhangjiagang traders 7110; and Guangzhou traders 7230-7260). 

Palm oil: RBD palm olein is mainly priced at 6,230-6,350 CNY/tonne in coastal areas, mostly down 140-160 CNY/tonne. (Tianjin traders 6320-6350, down 140; Rizhao 6340, down 160; Zhangjiagang traders 6290, down 140; Guangzhou traders 6230-6250, down 150; and Xiamen not available).  

Rapeseed oil: U.S. soybean futures fell on Tuesday, and oils futures slump on China’s commodity exchanges today. Spot rapeseed oil prices drop 10-70 CNY to 9,310-9,390 CNY/tonne in coastal regions in tepid trading. Large arrivals of imported soybeans have pushed up weekly soybean crush to hit a historical high in China. And domestic demand for rapeseed oil is constrained by its excessively high prices, and buyers have also basically completed buying ahead of the holidays. Hence, rapeseed oil prices decline today. However, China’s rapeseed crush remains at a relatively low level due to limited rapeseed imports amid tensions between Beijing and Ottawa, and crushers are mainly carrying out contracts now, which are still supporting rapeseed oil market. As the market is digesting the pressure of new U.S. soybean sales, short-term rapeseed oil will decline and adjust in the short run, and buyers can wait for the moment.

Cottonseed oil: Cottonseed oil prices keep steady with an additional decrease of 100-200 CNY/tonne in individual regions today. U.S. soybean dropped further on Tuesday on heavy strain on harvest and poor export. Palm oil on Bursa Malaysia Derivatives went down on Tuesday due to clouded demand outlook under one-week China’s National Day holiday. And crude oil moved weakly. Consequently, oil futures on Dalian Commodity Exchange slump today. In the spot market, soybean oil down by 100-190 CNY/tonne and palm oil down by 140-160 CNY/tonne. Moreover, bulk oils market falls back substantially over fears about resurgence of COVID-19 in Europe. In addition, with the marketing of new cottonseed, buyers are waiting for new cottonseed oil, seeing light trading. It is predicted that short-term market may swing to lower following bulk oils.

(USD $1=CNY ¥6.81)