Today (Oct 21), 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 imported soybeans is gradually decreasing, which is supporting the market. However, buyers prefer domestic soybeans as new crops come into the market and of improved quality, and some port traders offer very high prices for imported soybeans, which also dwindles the market appetite. These are negative to the market.

Cottonseed: Cottonseed prices fluctuate by 0.02-0.08 CNY/kg in several regions today. Cottonseed output this year has decreased compared with the previous year. And both cottonseed oil and cottonseed meal are keeping strengthening for the moment. Thus, cottonseed market is supported. Besides, the delivery of cottonseed is still under impact of the COVID-19 outbreak in Xinjiang. Moreover, cottonseed crushing mills keep facing losses as cottonseed price remains too high, and many mills have halted the purchase. In short, cottonseed market is projected to maintain a strong trend in the near term.

Oils: 

Summary: U.S. soybean futures rose on Tuesday on strong exports, and Malaysian palm oil futures also closed higher as Malaysia’s palm oil exports in Oct 1-20 rose 4.3% from a month earlier. And oils futures also move higher and post wide gains on China’s Dalian Commodity Exchange today. In the spot markets, soybean oil goes up 30-100 CNY/tonne and palm oil up 20-50 CNY/tonne. The trade is predicted to be tepid as Dalian oils futures narrow down gains in afternoon.

Dalian oils futures are adjusting violently in recent sessions, and the market has been digesting the impact of a sharp rise in rapeseed oil and palm oil stockpiles. The oils futures have been posting gains in the last two sessions after hitting a pre-holiday low, so the market sentiment is somewhat improved. Besides, China’s soybean oil stocks have declined by 4% weekly to 1.29 mln tonnes as it has been hugely used to substitute its rivals and in feed. There is not much stress in fundamentals, and slow soybean planting in Brazil will also delay the marketing time, in addition to an inflation expectation, so the mid-to-long oils prices will fluctuate to move upward. But buyers are suggested not to chase after excessively higher prices in view of frequent fluctuations on Dalian exchange.

Soybean oil: GB Grade I soybean oil is mainly priced at 7300-7500 CNY/tonne in domestic coastal areas, a rise of 30-100 CNY/tonne. (Tianjin traders 7390; Rizhao traders 7300; Zhangjiagang traders 7420; and Guangzhou traders 7470-7500).

Palm oil: RBD palm olein is mainly priced at 6380-6550 CNY/tonne in coastal areas, mostly up 20-50 CNY/tonne. (Tianjin traders 6480-6500, up 20; Rizhao 6550, up 40; Zhangjiagang traders 6460, up 20; Guangzhou traders 6380-6400, up 50; and Xiamen not available).

Rapeseed oil: U.S. soybean futures rose on Tuesday on robust export sales, and Malaysian palm oil futures also closed higher on improved exports. Oils futures thus post gains on China’s oils markets, led by Dalian palm olein futures. Spot rapeseed oil prices go up by 10-50 CNY to 9,520-9,570 CNY/tonne in coastal regions in tepid trading.

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. And China’s soybean oil stocks declined 4% weekly to 1.29 mln tonnes. Besides, the consumption of oils in feed is large this year, so there is no pressure in the supply side. Overall, rapeseed oil is predicted to stay at the high level and in thin trade.

Cottonseed oil: Cottonseed oil prices mainly keep steady and fluctuate by 50-200 CNY/tonne in several regions today. U.S. soybean futures rose on Tuesday on strong export sales. Palm oil on Bursa Malaysia Derivatives closed higher yesterday as exports of Malaysian palm oil for October 1-20 went up by 4.3%. Also, oil futures on China’s Dalian Commodity Exchange widen the opening gains today, and spot soybean oil up by 30-100 CNY/tonne. Besides, it sees no pressure on oils fundamentals due to increased consumption of oil for feedstuffs this year. At the moment, cottonseed crushing mills keep facing losses as cottonseed price remains too high, any many mills have halted the purchase. Consequently, the operation rate still stays at a low level, which will continue underpinning cottonseed oil market. However, crushing mills are also wary of raising price considering tepid trading in market currently. Accordingly, short-term cottonseed oil price may follow soybean oil to fluctuate at high levels.

(USD $1=CNY ¥6.68)