Today (Oct 30), the market for oilseeds and oils in China is shown as follows:

Oilseeds:

Imported soybean: Uruguayan soybean is offered at 4,550-4,600 CNY/tonne at Shandong port today. The supply of imported soybeans is gradually decreasing, which is supporting the market. But the influx of new domestic soybeans is entering the market, and the quality is also improving, so that purchasers turn to choose domestic soybeans. Overall, short-term imported soybean market is predicted to be little changed.

Cottonseed: Cottonseed prices mainly steadily decline by 0.02-0.03 CNY/kg 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 and the downward space is limited. 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 some mills have halted the purchase and have intention to force price down. It is expected that short-term cottonseed market may move with fluctuations.

Oils: 

Summary: US soybean futures continued declining on Thursday as commodity funds began to take profits on severe COVID-19 pandemic in Europe and on risk aversion ahead of the US election on Nov 3. But rapeseed oil futures keep surging on China’s Zhengzhou Commodity Exchange today, bolstering soybean oil and palm Olson to post sharp rises in Dalian. In the spot markets, soybean oil and palm oil go up 60-120 CNY/tonne, both in tepid trade.

Malaysia’s palm oil production is fall while exports increasing, slowing down stocks accumulation. India is considering lower down import duties of vegetable oils to expand imports. And funds are bolstering rapeseed oil market to post huge gains. Meanwhile, soybean oil stocks are not pressuring the market. Hence, the arbitrage of buying oils and selling meals is helping the oils market to pick up, and the market is predicted to fluctuate but keep an uptrend. But the judge ruled that Meng Wanzhou’s lawyers can apply for termination of the extradition procedure with "significant omission of evidence", which is somewhat bearish to the market. Besides, there is huge uncertainty in the market as the result of US presidential election will come out next week. Traders will remain cautious, and oils futures pare greater gains in afternoon trade. Overall, the oils market is predicted to fluctuate frequently in the short term, and participants need to remain cautious.

Soybean oil: GB Grade I soybean oil is mainly priced at 7,640-7,770 CNY/tonne in domestic coastal areas, a rise of 60-120 CNY/tonne. (Tianjin traders 7640-7670; Rizhao traders 7670; Zhangjiagang traders 7750; and Guangzhou traders 7770). 

Palm oil: RBD palm olein is mainly priced at 6,730-6,850 CNY/tonne in coastal areas, up 80-110 CNY/tonne. (Tianjin traders 6780-6800, up 80; Rizhao 6850, up 90; Zhangjiagang traders 6790, up 110; Guangzhou traders 6730-6750, up 100; and Xiamen not available). 

Rapeseed oil: U.S. soybean futures closed further lower on Thursday as severe COVID-19 pandemic in Europe and improving weather in Brazil’s producing regions. But rapeseed oil futures open high to rise on China’s Zhengzhou Commodity Exchange today as funds speculate on tightening stocks of only 284,000 tonnest. Spot rapeseed oil prices go up 140-160 CNY to 10,180-10,320 CNY/tonne in coastal regions in tepid trading.

China’s lower rapeseed imports due to tensions with Canada keep the crush at a low level, so that domestic mills are mainly carrying out rapeseed oil contracts. Actually, the demand for oils in feed posts a huge growth this year. Hence, there is no pressure in supply, which is supporting rapeseed oil market. But the judge ruled that Meng Wanzhou’s lawyers can apply for termination of the extradition procedure with "significant omission of evidence", which is somewhat bearish to the market. Besides, there is huge uncertainty in the market as the result of US presidential election will come out next week. Traders will remain cautious in both futures and spot markets.

Cottonseed oil: Cottonseed oil prices mainly keep steady and rise by 100 CNY/tonne in some regions today. U.S. soybean futures further declined on Thursday on record numbers of coronavirus cases worldwide. But rapeseed oil futures jump higher on China’s Zhengzhou Commodity Exchange today. Soybean oil and palm oil rally on Dalian Commodity Exchange in morning session tracking ZCE’s gains, and settle 60-120 CNY/tonne higher in the cash market. Malaysian palm oil production slides while export goes up, slowing down stocks accumulation. And Indian government is considering reducing import taxes on vegetable oils to expand imports. And funds are bolstering rapeseed oil market to post huge gains. Meanwhile, soybean oil stocks are not pressuring the market. Hence, the arbitrage of buying oils and selling meals is helping the oils market to pick up.

Cottonseed crushing mills keep facing losses as cottonseed price remains too high now, and many mills have halted the purchase. Consequently, the operation rate still stays at a low level, which will continue underpinning cottonseed oil market. Hence, short-term cottonseed oil market is likely to fluctuate at the high level. In addition, Meng Wanzhou scored a victory in her battle as the judge ruled that her lawyers can apply for termination of the extradition procedure with "significant omission of evidence", which is fairly bearish to oils market. Besides, there still exists uncertainty in the market as the result of U.S. presidential election will come out next week, so traders will remain cautious in taking actions.

(USD $1=CNY ¥6.72)