Today (Nov 12), the market for oilseeds and oils in China is shown as follows:

Oilseeds:

Imported soybean: U.S. Gulf soybeans are offered at 4,950 CNY/tonne and Uruguayan soybeans at 4,980 CNY/tonne at Shandong port today. Imported soybeans are in tight supplies, in addition to strict commodity inspections at ports, which is bolstering the sales sentiment and bullish to the market. But domestic purchasers turn to choose domestic soybeans and have little appetite for imported soybeans. Moreover, Chins is still fulfilling the phase-one trade deal, so that its soybean imports will likely increase, which is limiting the market. Overall, short-term imported soybean market is predicted to keep firm.

Cottonseed: Cottonseed prices dip by 0.05 CNY/kg in some regions today. 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. Besides, cottonseed output this year is lower than the previous year, which supports cottonseed market. It is expected that cottonseed price will fluctuate in a short term but still stay strong on the whole.

Oils: 

Summary: U.S. soybean futures continued rising on Wednesday on the bullish monthly supply and demand report by the USDA. But as new COVID-19 cases hit a new high in the U.S., and investors have stronger sentiment to sell into rally, oils futures sharply narrow down gains and stay around the previous close on China’s Dalian Commodity Exchange today. In the spot markets, soybean oil fluctuates by 10-40 CNY/tonne and palm oil down 10-50 CNY/tonne, both in tepid trade.

Malaysia’s palm oil production sees a decline of 12% in the first ten days of November, although its exports also slump by 17-19%. And Brazil has started to purchase U.S. soybeans after selling out all its beans to China, which will help U.S. soybean prices keep firm. Besides, oils shipments are brisk in China now, in addition to the demand from feed production. Currently, China’s soybean oil stocks are at around 1.21 mln tonnes, and palm oil and rapeseed oil inventories are also low. In addition, soybean import cost is growing due to strong U.S. soybean performance. These will combine together to bolster oils market to maintain an uptrend in fluctuation, but it is necessary to prevent short-term fluctuations as oils futures are narrowing down gains.

Soybean oil: GB Grade I soybean oil is mainly priced at 7,860-7,990 CNY/tonne in domestic coastal areas, fluctuating by 10-40 CNY/tonne. (Tianjin traders 7910-7940; Rizhao traders 7950; Zhangjiagang traders 7990; and Guangzhou traders 7860-7890). 

Palm oil: RBD palm olein is mainly priced at 6,810-6,920 CNY/tonne in coastal areas, mostly down 10-50 CNY/tonne. (Tianjin traders 6910, down 10; Rizhao not available; Zhangjiagang traders 6890-6920, down 30; Guangzhou traders 6810, down 50; and Xiamen not available). 

Rapeseed oil: U.S. soybean futures continued rising on Wednesday, and rapeseed oil futures also open high and climb on China’s Zhengzhou Commodity Exchange today. Spot rapeseed oil prices go up 150-180 CNY to 10,210-10,330 CNY/tonne in coastal regions in tepid trading.

China’s soybean, rapeseed and palm oils stockpiles are all at low levels due to strong demand, and there is no pressure in oils supplies due to a rise in demand from feed this year. In addition, Canadian Prime Minister Justin Trudeau said he will continue to stand up against China's "coercive diplomacy”, which was dismissed by China’s Foreign Ministry. The deadlock in bilateral relations is also bolstering rapeseed oil market. But Chinese yuan has been rising sharply after Joe Biden was elected as the U.S. president, and China’s soybean crush remains high due to huge soybean supplies. And the consumption of rapeseed oil is also affected by its huge price spread with soybean oil and palm oil. Overall, rapeseed oil prices will maintain a strengthening trend, but there is mainly rigid demand in the market due to dismal value-to-price ratio.

Cottonseed oil: Cottonseed oil prices steadily increase by 100 CNY/tonne today. U.S. soybean futures further rose on Wednesday on bullish USDA supply and demand report. Besides, oil trading goes better in China, and the demand for oils is brisk. In this case, soybean oil stocks fall by around 1.21 mln tonnes. Also, the inventory of palm oil and rapeseed oil stays fairly low. Furthermore, US soybean stages strong performance, pulling up the cost of importing soybean. Bulk oils market is likely to fluctuate to trending up. Additionally, cottonseed crushing mills keep facing losses as cottonseed is still pricey, so they intend to prop up prices. It is predicted that short-term cottonseed oil market will still stay at the high level.

(USD $1=CNY ¥6.62)