Today (Nov 13), 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, imported soybean auctions are underway, with 47,500 all sold out today, which is limiting the market. Overall, short-term imported soybean market is predicted to keep firm.

Cottonseed: Cottonseed prices keep steady 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 narrowly in a short term but still stay strong on the whole.

Oils: 

Summary: U.S. soybean futures fell on Thursday on profit taking, and oils futures fluctuate to adjust on China’s Dalian Commodity Exchange today. In the spot markets, soybean oil partially fluctuates by 20-70 CNY/tonne and palm oil down by 20-50 CNY/tonne, both in tepid trade.

After climbing to a historical high, domestic oils market is pulling back on a sharp rise in COVID-19 cases in Europe and U.S. and a quicker pace in soybean planting in South America. However, Malaysian palm oil futures rose to a fresh high in over eight years on Thursday, as Southern Peninsular Palm Oil Millers Association pegged Nov 1-10 palm oil production fell 12% from a month earlier. 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. And due to growing demand from feed production, China’s soybean oil stocks are at around 1.21 mln tonnes, and palm oil and rapeseed oil inventories are also low. In addition, high U.S. soybean prices have lifted import cost, so that crush margins are at a loss on Dalian. Dalian oils futures rally from the low level in afternoon trade thanks to strong support on downside. The overall oils market will probably have limited downside space and will keep an uptrend in fluctuation.

Soybean oil: GB Grade I soybean oil is mainly priced at 7,870-7,950 CNY/tonne in domestic coastal areas, partially fluctuating by 20-70 CNY/tonne. (Tianjin traders 7870-7900; Rizhao traders 7930; Zhangjiagang traders 7950; and Guangzhou traders 7870). 

Palm oil: RBD palm olein is mainly priced at 6,760-6,870 CNY/tonne in coastal areas, mostly down 20-50 CNY/tonne. (Tianjin traders 6860-6870, down 20; Rizhao not available; Zhangjiagang traders 6860, flat; Guangzhou traders 6760-6790, down 20; and Xiamen not available). 

Rapeseed oil: U.S. soybean futures retreated on Thursday, but rapeseed oil futures are modestly higher on China’s Zhengzhou Commodity Exchange today. Spot rapeseed oil prices go up 50-70 CNY to 10,190-10,320 CNY/tonne in coastal regions in tepid trading. 

China and Canada will hardly see a thaw in relations in a short term, so that domestic millers keep small rapeseed crush and are mainly carrying out rapeseed oil stocks. Currently, rapeseed oil stocks are only 242,000 tonnes in coastal China, and soybean oil stockpiles have also fallen to 1.21 mln tonnes. There is no pressure in oils supplies due to a rise in demand from feed this year. However, Chinese millers keep soybean crush at a high level due to adequate feedstock supplies, and the consumption of rapeseed oil is also affected by its huge price spread with soybean oil and palm oil. Overall, rapeseed oil market is predicted to keep strengthening in fluctuation.

Cottonseed oil: Cottonseed oil prices increase by 100 CNY/tonne in several regions today. SPPOMA estimates a month-on-month decline of 12% in Nov 1-10 palm oil production. 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, so crushing mills suffer from losses again. Bulk oils are underpinned by bottom market. 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 fluctuate at the high level.

(USD $1=CNY ¥6.63)