Today (Nov 19), 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 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 and cottonseed oil stays firm, which supports cottonseed market. It is expected that cottonseed price will fluctuate narrowly in a short term and keep strengthening on the whole.

Oils: 

Summary: U.S. soybean futures closed further higher on Wednesday, and oils futures also continue rises on China’s Dalian Commodity Exchange today. In the spot markets, soybean oil goes up 110-170 CNY/tonne and palm oil up 160-190 CNY/tonne. Buyers are cautious due to sharp gains this week, so the trade is tepid.

The market sentiment is bolstered by dry weather in South America and brisk U.S. soybean exports, alongside an expectation for a quicker recovery in global economy as the drug maker Pfizer said that its coronavirus vaccine is 95% effective in final clinical trial data. Moreover, global vegetable oils market is in tight supplies, and domestic soybean oil stocks are declining under extremely high soybean crush. Besides, domestic palm oil and rapeseed oil inventories are also low, and Malaysian palm oil stockpiles also stay at a low level. These together support the oils market to keep a strong trend. But Chinese yuan maintains an uptrend due to a detente expectation in China-U.S. relations, and domestic crushers keep high soybean crush due to huge soybean imports, so it is necessary to prevent risks of short-term technical corrections in the wake of consecutive sharp gains while being bullish. Participants can keep a close eye on the key resistance level of 8,000 of Dalian soybean oil.

Soybean oil: GB Grade I soybean oil is mainly priced at 8,270-8,350 CNY/tonne in domestic coastal areas, a rise of 110-170 CNY/tonne. (Tianjin traders 8270-8300; Rizhao traders 8300; Zhangjiagang traders 8320; and Guangzhou traders 8320-8350). 

Palm oil: RBD palm olein is mainly priced at 7,100-7,160 CNY/tonne in coastal areas, mostly up 160-190 CNY/tonne. (Tianjin traders 7150-7160, up 160; Rizhao not available; Zhangjiagang traders 7100, up 160; Guangzhou traders 7100, up 190; and Xiamen not available).

Rapeseed oil: U.S. soybean futures closed higher on Wednesday, and rapeseed oil futures post sharp gains on China’s Zhengzhou Commodity Exchange today. Spot rapeseed oil prices go up 120-140 CNY to 10,340-10,490 CNY/tonne in coastal regions in tepid trading. 

Rapeseed oil is in tight supplies in China now, its stocks are only 213,000 tonnes, a decline of 48.85% from a year earlier. Besides, domestic soybean oil stocks keep falling, and palm oil stockpiles are also at a low level. Meanwhile, there is no pressure in oils supplies due to a rise in demand from feed this year. However, Chinese yuan is rising sharply due to an expectation for a detente in China-U.S. relations, and domestic crushers are maintaining high soybean crush 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 prices will probably stay at high levels, but there is mainly rigid demand in the market due to dismal value-to-price ratio.

Cottonseed oil: Cottonseed oil prices get another increase of 100-200 CNY/tonne in some regions today. Market expected an acceleration of global economic recovery as Pfizer Inc said on Wednesday that final results from the late-stage trial of its COVID-19 vaccine showed it was 95% effective, boosting market sentiment. U.S. soybean futures further rose on Wednesday on the news and strong export as well as dryness across soybean area in South America. Oil futures continue soaring today on China’s Dalian Commodity Exchange. In the cash market, soybean oil grows by 110-170 CNY/tonne and palm oil jumps by 160-190 CNY/tonne. It will see a consecutive decrease in soybean oil stocks despite super high level of soybean crush. Also, the inventory of palm oil and rapeseed oil stays relatively low. Malaysian palm oil stocks in late October descended to a low of 1.57 mln tonnes. Bulk oils market will stay strong overall. 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 a strengthening trend.

Sunflower oil: Sunflower oil prices are stable with a partial rise of 100-300 CNY/tonne in China today. Grade I imported sunflower oil is offered at 9,900-10,300 CNY/tonne; crude sunoil is offered at 9,200 CNY/tonne.

Global vegetable oils are in tight supplies, and soyoil, palm oil and rapeseed oil stocks are also low. Meanwhile, U.S. soybean futures rose further on Wednesday, and oils futures also continue sharp rises on China’s Dalian Commodity Exchange today. Spot soybean oil and palm olein prices also move higher in China today. Besides, sunflower oil prices remain high in foreign markets, 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 10,000-10,500 CNY/tonne, down 100 CNY/tonne. (Shandong 10,200-10,500 CNY/tonne, down 100 CNY/tonne; Hebei 10,200; Liaoning 10,000; Sichuan 10,100); crude corn oil is offered at 8,300-8,600 CNY/tonne. (Hebei 8,350-8,600 CNY/tonne; Henan 8,500; Inner Mongolia 8,300).

China’s corn oil prices remain at a high level, which is bearish to the market. Meanwhile, the supply of corn oil is also increasing due to a pickup in operation rates, whilst downstream buyers are slow in taking delivery due to dismal demand in the market. These are cracking down spot corn oil prices. 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 ¥6.55)