Today (Nov 17), the market for oilseeds and oils in China is shown as follows:

Oilseeds:

Imported soybean: U.S. Gulf soybeans are offered at 4,850-4,900 CNY/tonne and Uruguayan soybeans 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 0.01-0.06 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 narrowly in a short term.

Oils: 

Summary: U.S. soybean futures rose on Monday on brisk demand and market enthusiasm that U.S. drugmaker Moderna’s experimental vaccine was 94.5% effective in preventing COVID-19. And crude oil prices also saw a huge rise yesterday. Hence, oils futures fluctuate to move higher on China’s Dalian Commodity Exchange today. In the spot markets, soybean oil goes up 40-50 CNY/tonne and palm oil p 80-100 CNY/tonne, both in tepid trade.

Dalian palm olein futures are strong today, as Malaysian Nov 1-15 palm oil production saw a bigger decline to 16% from a month earlier. Meanwhile, domestic soybean oil stocks also fell 3% to 1.18 mln tonnes. Besides, domestic palm oil and rapeseed oil stockpiles are also at low levels. In addition, 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 8,100-8,170 CNY/tonne in domestic coastal areas, a rise of 40-50 CNY/tonne. (Tianjin traders 8110-8130; Rizhao traders 8100; Zhangjiagang traders 8150; and Guangzhou traders 8140-8170). 

Palm oil: RBD palm olein is mainly priced at 6,940-7,030 CNY/tonne in coastal areas, up 80-100 CNY/tonne. (Tianjin traders 7010-7030, up 80; Rizhao not available; Zhangjiagang traders 7010, up 100; Guangzhou traders 6940, up 90; and Xiamen not available). 

Rapeseed oil: U.S. soybean futures rose on Monday on brisk demand and market enthusiasm that U.S. drugmaker Moderna’s experimental vaccine was 94.5% effective in preventing COVID-19. And rapeseed oil futures fluctuate to rise on China’s Zhengzhou Commodity Exchange today. Spot rapeseed oil prices go up 10-20 CNY to 10,110-10,260 CNY/tonne in coastal regions in tepid trading. 

China’s rapeseed crush remains small as the country is in a stalemate with Canada, and Chinese crushers are mainly carrying out rapeseed oil contracts. Currently, domestic rapeseed oil stocks are only 213,000 tonnes and soybean oil stockpiles also fall to 1.18 mln tonnes. Meanwhile, there is no pressure in oils supplies due to a rise in demand from feed this year. These are supporting rapeseed oil market to keep an uptrend. However, China’s soybean crush remains high due to adequate 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 market is predicted to fluctuate to stay strong at the high level.

Cottonseed oil: Cottonseed oil prices increase by 50-150 CNY/tonne today. U.S. soybean futures finished higher on Monday on robust demand and optimism in market as Moderna Inc said its experimental vaccine was 94.5% effective in preventing COVID-19. Crude oil also rose markedly. Oil futures fluctuate to go up today on China’s Dalian Commodity Exchange. On the spot market, soybean oil grows by 40-50 CNY/tonne and palm oil jumps 80-100 CNY/tonne higher. Besides, soybean oil stocks fall by 3% to 1.18 mln tonnes. Also, the inventory of palm oil and rapeseed oil stays relatively 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 keep strengthening at the high level.

Sunflower oil: Sunflower oil prices are stable and some mixed in China today. Grade I imported sunflower oil is offered at 9,800-10,400 CNY/tonne, fluctuating by 50-200 CNY/tonne; crude sunoil is offered at 9,200 CNY/tonne.

U.S. soybean futures rose on Monday on brisk demand and market enthusiasm that U.S. drugmaker Moderna’s experimental vaccine was 94.5% effective in preventing COVID-19. And oils futures also fluctuate to move higher on China’s Dalian Commodity Exchange today, and spot soybean oil and palm olein also see rises. Besides, sunflower oil prices remain high in foreign market, in addition to a production reduction in sunflowerseed. These are support sunflower oil prices to continue rises. Domestic milers are supporting sunflower oil prices, which is good to the market. But domestic downstream buyers are cautious now due to high sunflower oil prices, which is negative to the market. Overall, short-term sunflower oil market is predicted to continue a strong trend on bullish factors.

Corn oil: Corn oil prices are mostly stable with a partial decline in China today. Grade I corn oil is offered at 10,100-10,500 CNY/tonne. (Shandong 10,300-10,500 CNY/tonne; Hebei 10,200; Liaoning 10,200; Sichuan 10,100); crude corn oil is offered at 8,300-8,600 CNY/tonne, down 100 CNY/tonne. (Hebei 8350-8600 CNY/tonne; Henan 8500; Inner Mongolia 8300, down 100 CNY).

The market sentiment is bearish due to a sustained decline in feedstock corn germ prices recently, and a majority of millers tend to wait as spot corn oil prices remain at the high level, which together crack down corn oil market. But millers are propping up prices due to high cost. Overall, short-term corn oil market is predicted to decline to adjust but also to keep a strengthening trend in fluctuation.

(USD $1=CNY ¥6.58)