Today (Oct 9), the market for oilseeds and oils in China is shown as follows:

Oilseeds:

Imported soybean: Non-GM Canadian soybeans are priced at 4,850 CNY/tonne at Tianjin port, a decline of 100 CNY from that before the holidays. 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 and high quality, 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 increase by 0.04-0.1 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, cottonseed price is high in market, dampening inland oil mills in making purchase. Moreover, factories are wary of buying cottonseed as cottonseed by-products move weakly overall. Due to a surge in bulk oils and meals market after National Day holidays, cottonseed price is projected to be boosted.

Oils: 

Summary: U.S. soybean futures finally settled at 1,050 cents on Thursday, a rise of 61 cents from the session ahead of China’s National Day holidays, which could be attributed to the bullish USDA seasonal stocks data, good export data of U.S. soybeans, and a delay in Brazilian soybean planting due to a lack of rainfall. Meanwhile, Malaysian palm oil futures rose 172 ringgits during the Chinese holidays, as the market was worried about palm oil supply due to heavy rains in producing regions. Hence, soybean complex and oils futures take a strong trend to climb higher on China’s Dalian Commodity Exchange today. In the spot markets, soybean oil and palm oil follow futures to rise by 220-330 CNY/tonne, attracting some purchases on low-level basis. China’s soybean oil inventory is not a burden in the wake a sharp decline in soybean crush during the Golden Week, and rapeseed oil stockpiles are also at a low level. In addition, a leading agency pegs Malaysia’s September-ending palm oil stocks at 1.67-1.72 mln tonnes, compared to 1.70 mln tonnes at the end of August. Palm oil stockpiles may build up at a slow pace in the producing regions in the fourth quarter under the impact of the La Nina. Meanwhile, the active sentiment of funds may be fueled by lingering global inflation expectations and as the market is focusing on weather conditions for soybean planting in South American countries. The oils market has snapped off pre-holiday declines and returns to a strong trend.

Soybean oil: GB Grade I soybean oil is mainly priced at 7,300-7,530 CNY/tonne in domestic coastal areas, a rise of 220-330 CNY/tonne. (Tianjin traders 7300-7320; Rizhao traders 7340; Zhangjiagang traders 7380-7400; and Guangzhou traders 7530).

Palm oil: RBD palm olein is mainly priced at 6,490-6,600 CNY/tonne in coastal areas, mostly up 250-290 CNY/tonne. (Tianjin traders 6580-6600, up 290; Rizhao 6590, up 280; Zhangjiagang traders 6510, up 250; Guangzhou traders 6490-6510, up 290; and Xiamen not available).

Rapeseed oil: U.S. soybean futures finally settled at 1,050 cents on Thursday, a rise of 61 cents from the session ahead of China’s National Day holidays, which could be attributed to the bullish USDA seasonal stocks data, good export data of U.S. soybeans, and a delay in Brazilian soybean planting due to a lack of rainfall. Meanwhile, Malaysian palm oil futures rose 172 ringgits during the Chinese holidays, as the market was worried about palm oil supply due to heavy rains in producing regions. Hence, oils futures open higher on China’s commodity exchange today. Spot rapeseed oil prices go up 220-270 CNY to 9,540-9,570 CNY/tonne in coastal regions in tepid trading. 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. China’s rapeseed oil stocks were down by 4% to 190,000 tonnes in coastal regions last week, a low level compared to this period in record. Funds will continue to go long in oils futures due to tight rapeseed oil supplies and an inflation expectation, so rapeseed oil prices may stay at the high level in the short run.

Cottonseed oil: Cottonseed oil prices fluctuate by 50-200 CNY/tonne and are mixed today. Soybean crush sharply declined during National Day holidays as a surge in U.S. soybean pushed up the cost of importing soybean. Meanwhile, global inflation expectations still exist, and markets are worry about the weather during the planting season of South American soybean. In this case, oils market has ended the previous round of fall and bounce back. In spot market, soybean oil and palm oil drastically increase by 220-320 CNY/tonne. Moreover, the operation rate still stays at a low level, offering support to cottonseed oil market. Cottonseed oil price went down during National Day holidays as new cottonseed entered market while the demand was poor. However, bulk oils market in China basically rises sharply after holidays following the rise in US soybean, which boosts cottonseed oil price in some regions. This has offset the previous declines during holidays. It is predicted that short-term cottonseed oil price may follow soybean oil price to fluctuate to rally.

(USD $1=CNY ¥6.78)