Today (Nov 16), the market for oilseeds and oils in China is shown as follows:

Oilseeds:

Imported soybean: U.S. Gulf soybeans are offered lower by 100 CNY at 4,850-4,900 CNY/tonne and Uruguayan soybeans lower 80 CNY at 4,900-4,950 CNY/tonne at Shandong port today. Domestic purchasers tend to choose domestic soybeans and have little appetite for imported soybeans. And U.S. democratic candidate Joe Biden won the presidential election, which will make for a detente in relations between China and the US. In addition, China is still purchasing soybeans from the U.S. and Brazil, which will increase the arrivals at ports and thus be negative to imported soybean market. However, imported soybeans are in tight supplies, in addition to strict commodity inspections at ports, which is bolstering the market. Overall, short-term imported soybean market is predicted to steady.

Cottonseed: Cottonseed prices decrease by 0.02-0.06 CNY/kg in several 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 narrowly in a short term.

Oils: 

Summary: U.S. soybean futures rose last Friday on strong export demand and tightening supplies, and as dry weather could affect soybean production in Brazil. On China’s Dalian Commodity Exchange today, soybean oil futures continue surging and palm olein fluctuates to adjust. In the spot markets, soybean oil goes up 110-170 CNY/tonne and palm oil fluctuates by 10-30 CNY/tonne, both in tepid trade.

Despite that soybean crush rose 1.2% to 2.12 mln tonnes last week, domestic soybean oil stocks fell further by 3% to 1.18 mln tonnes. And palm oil and rapeseed oil inventories are also at low levels. And after Malaysia’s Oct palm oil stocks fell to a three-year low, the bullish sentiment become stronger. Besides, import cost for soybeans remains high now due to high U.S. soybean prices, so that crush margins have been at a loss again in China. Overall, the oils market is predicted to keep a strong pattern on bullish factors.

Soybean oil: GB Grade I soybean oil is mainly priced at 8,050-8,110 CNY/tonne in domestic coastal areas, a rise of 110-170 CNY/tonne. (Tianjin traders 8060; Rizhao traders 8050; Zhangjiagang traders 8110; and Guangzhou traders 8090). 

Palm oil: RBD palm olein is mainly priced at 6,870-6,980 CNY/tonne in coastal areas, fluctuating by 10-30 CNY/tonne. (Tianjin traders 6940-6950, up 30; Rizhao 6980, down 10; Zhangjiagang traders 6900-6920, down 20; Guangzhou traders 6840, up 20; and Xiamen not available). 

Rapeseed oil: U.S. soybean futures rose last Friday on strong export demand and tightening supplies, and as dry weather could affect soybean production in Brazil. But rapeseed oil futures open low and decline on China’s Zhengzhou Commodity Exchange today. Spot rapeseed oil prices go down 70-90 CNY to 10,100-10,230 CNY/tonne in coastal regions in tepid trading. 

China and the U.S. could see a thaw in relations as U.S. democratic candidate Joe Biden won the presidential election, which will help HUAWEI Meng Wanzhou to get released. Besides, China’s soybean stocks are adequate, so that millers are maintaining high soybean crush. Moreover, the consumption of rapeseed oil is also affected by its huge price spread with soybean oil and palm oil. However, China’s rapeseed oil stocks fell 14% to 213,000 tonnes last week, and soybean oil inventories also declined by 3% weekly to 1.18 mln tonnes. Meanwhile, there is no pressure in oils supplies due to a rise in demand from feed this year. These will support rapeseed oil prices to stay at the high level.

Cottonseed oil: Cottonseed oil prices steadily increase by 100-200 CNY/tonne in several regions today. U.S. soybean futures closed higher on Friday on bullish USDA report, dryness in South Brazil as well as shorter supply amid strong export demand. Soybean oil keeps rising today on China’s Dalian Commodity Exchange, and spot soybean oil jumps 110-170 CNY/tonne higher. Besides, oil trading goes better in China, and the demand for oils is brisk. In this case, soybean oil stocks fall by 3% to 1.18 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 keep strengthening. 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 ¥6.60)