Today (Oct 19), the market for oilseeds and oils in China is shown as follows:

Oilseeds:

Imported soybean: Prices are almost not available and shipments also come to a standstill at ports due to strict commodity inspections. The supply of non-GM soybeans is gradually decreasing, which is supporting the market. However, imported soybean market has no advantage now due to sluggish port shipments and as new domestic soybeans are on the market and of improved quality. These are negative to the market.

Cottonseed: Cottonseed prices steadily grow by 0.06-0.22 CNY/kg in several regions today. The delivery of cottonseed is still under impact of the COVID-19 outbreak in Xinjiang. Besides, the quantity of new cottonseed appeared on the market is increasing day by day, and oil plants are cautious in purchasing cottonseed due to current high price. Additionally, cottonseed output this year has decreased compared with the previous year. And cottonseed oil and cottonseed meal are keeping strengthening for the moment. Thus, cottonseed market is supported. In short, cottonseed market will maintain a strong trend in the near term.

Oils: 

Summary: U.S. soybean futures fell to 1,050 cents last Friday as consistent rainfalls forecast in Brazil’s producing regions would be favorable to soybean planting. Oils futures fluctuate to drop and expand losses on China’s Dalian Commodity Exchange today. In the spot markets, soybean oil drops by 120-160 CNY/tonne and palm oil down 190-230 CNY/tonne, both in tepid trade.

Funds are briskly entering rubber and cotton sectors now, as they leave the oils market due to volatile trends and the end of arbitrage of buying oils and selling meals. Moreover, palm oil exports sales are dismal in main producing countries, of which Indonesia’s palm oil exports fell 27% from a year earlier to a three-month low in September. Meanwhile, domestic edible palm oil stockpiles surged by 21% to 420,000 tonnes. These are weighing down the oils market. However, domestic soybean oil stocks fell 4% weekly to 1.29 mln tonnes last week while soybean crush rose 5% weekly to 2.08 mln tonnes. The consumption of soybean oil to replace its rivals and in feed is still large,, so oil mills are propping up prices. Overall, short-term oils market will fluctuate to decline as futures prices are slumping, but mid-to-long-term prices will likely fluctuate to move upward. Buyers can wait at the moment.

Soybean oil: GB Grade I soybean oil is mainly priced at 7,200-7,360 CNY/tonne in domestic coastal areas, a decline of 120-160 CNY/tonne. (Tianjin traders 7200; Rizhao traders 7360; Zhangjiagang traders 7230; and Guangzhou traders 7280-7310). 

Palm oil: RBD palm olein is mainly priced at 6,270-6,370 CNY/tonne in coastal areas, mostly down 190-230 CNY/tonne. (Tianjin traders 6360-6370, down 210; Rizhao not available; Zhangjiagang traders 6340, down 190; Guangzhou traders 6270-6290, down 230; and Xiamen not available). 

Rapeseed oil: U.S. soybean futures fell to 1,050 cents last Friday, and oils futures open low and expand losses on China’s commodity exchanges today. Spot rapeseed oil prices drop by 120-150 CNY to 9,410-9,490 CNY/tonne in coastal regions in tepid trading.

China’s rapeseed oil stocks rose 47.4% to 293,000 tonnes last week with the arrivals of crude rapeseed oil cargoes. And domestic soybean crush also rose to 2.08 mln tonnes due to adequate supplies and handsome crush margins. These are weighing down rapeseed oil prices, and short-term market will continue declining to adjust. But China’s rapeseed crush is not substantial as its imports are limited amid tensions between Beijing and Ottawa, and oil mills are mainly carrying out rapeseed oil contracts. Buyers can temporarily stay on the sidelines.

Cottonseed oil: Cottonseed oil prices mainly keep steady and further increase by 150 CNY/tonne in individual regions today. Market sentiment is still affected by weather condition across soybean area in South America, and global inflation expectations still exist. Besides, the consumption of oil for feedstuffs has increased this year with no pressure on supply. Soybean oil inventory has fallen by 4% to 1.29 mln tonnes, and the stocks of rapeseed oil and palm oil both stay at a historical low, so oil mills still intend to prop up price. Moreover, the operation rate in cottonseed crushing mills still stays at a low level. Hence, these have offered support to cottonseed oil market. However, U.S. soybean futures dived to 1,050 cents on Friday. And oil futures on China’s Dalian Commodity Exchange today fluctuate to go down and extend the declines. In spot market, soybean oil dips by 120-160 CNY/tonne and palm oil slumps by 190-230 CNY/tonne. But bulk oils market pares gains consecutively in the near term, which may affect short-term rises of cottonseed oil. Buyers had better pay attention to it.

(USD $1=CNY ¥6.70)