Today (Nov 25), 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 set a further dip of 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 edged down on Tuesday on profit taking, but the Dow Jones broke 30,000 for the first time ever and crude oil prices also surged, so oils futures snap off a downtrend to rise on China’s Dalian Commodity Exchange today. In the spot markets, soybean oil goes up 80-140 CNY/tonne and palm oil up 10-40 CNY/tonne. The market is expected to attract some purchases on low-level basis and remain tepid in spot trade.

Malaysian palm oil futures continued gains on concerns over a decline in production. And recently, import margins for soybean oil and palm oil have been notably worsening, so that there come whispers that Chinese buyers have canceled cargoes. It is said that Chinese importers have canceled several vessels of U.S. soybean for Nov-Jan shipments, and 80,000 tonnes of Argentine soybean oil for Dec-Jan deliveries. Meanwhile, as U.S. soybean futures get near to the key 1,200, import cost has been growing while crush margins for nearby contracts have been at a loss on Dalian. Besides, soybean oil supplies in China is not a pressure, and palm oil and rapeseed oil inventories also remain low. In addition, stock markets also surged on pieces of news about COVID-19 vaccines, and there still exists a global inflation expectation. Overall, the oils market will keep an uptrend in wonky trade.

Soybean oil: GB Grade I soybean oil is mainly priced at 8,160-8,200 CNY/tonne in domestic coastal areas, a rise of 80-140 CNY/tonne. (Tianjin traders 8170-8180; Rizhao traders 8200; Zhangjiagang traders 8200; and Guangzhou traders 8160-8180). 

Palm oil: GB Grade I soybean oil is mainly priced at 8,160-8,200 CNY/tonne in domestic coastal areas, a rise of 80-140 CNY/tonne. (Tianjin traders 8170-8180; Rizhao traders 8200; Zhangjiagang traders 8200; and Guangzhou traders 8160-8180). 

Rapeseed oil: U.S. soybean futures closed lower on Tuesday, but rapeseed oil futures break a downtrend to climb on China’s Zhengzhou Commodity Exchange today. Spot rapeseed oil prices go up 100-120 CNY to 10,260-10,390 CNY/tonne in coastal regions in tepid trading.

China’s rapeseed crush remains small due to a stalemate with Canada, so that its rapeseed oil stocks are only 199,000 tonnes in coastal regions. Besides, its soybean oil stockpiles have also fallen to 1.17 mln tonnes and palm oil inventories are also low compared to this period in record. The oils supplies are not under pressure as there is stronger demand from feed production. These are supporting rapeseed oil market to keep an uptrend. However, China’s soybean crush remains high due o 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 at the high level.

Cottonseed oil: Cottonseed oil prices keep steady today. U.S. soybean futures edged down on Tuesday on profit taking. The Dow Jones Industrial Average breached the 30,000 level overnight for the first time. Crude oil also skyrocketed. Oil futures rally on China’s Dalian Commodity Exchange today. In the cash market, soybean oil rises by 80-140 CNY/tonne and palm oil increases by 10-40 CNY/tonne. Market still worries about palm oil production. Besides, US soybean is nearing 1,200 cents, pushing up the cost of importing soybean and seeing losses in crush margins. Moreover, the supply of soybean oil is sufficient. Also, the inventory of palm oil and rapeseed oil stays relatively low. Accordingly, bulk oils market will fluctuate to go up against the backdrop of global inflation expectations. In addition, cottonseed crushing mills keep facing losses as cottonseed is still pricey, so they intend to prop up prices. It is predicted that cottonseed oil market will keep a strengthening trend on the whole.

Sunflower oil: Sunflower oil prices steady in China today. Grade I imported sunflower oil is offered at 10,000-10,650 CNY/tonne; crude sunoil is offered at 9,700-10,000 CNY/tonne.

Although U.S. soybean futures were slightly lower on Tuesday on profit taking, the Dow Jones broke 30,000 for the first time ever and crude oil prices also surged, so oils futures snap off a downtrend to rise on China’s Dalian Commodity Exchange today. Spot soybean oil and palm oil prices also climb in China today. Meanwhile, palm oil and rapeseed oil inventories are also low in China at present. Hence, fundamentals are still bullish in oils market. Moreover, global vegetable oils are in tight supplies, and sunflower oil prices are at high levels in foreign countries. In addition, a reduction in sunflowerseed production is also lifting prices. Therefore, millers have strong sentiment in propping up sunflower oil prices. Overall, sunflower oil market in China is expected to continue an strengthening trend.

Corn oil: Corn oil prices steady in China today. Grade I corn oil is offered at 10,000-10,500 CNY/tonne. (Shandong 10,200-10,500 CNY/tonne; Hebei 10,200; Liaoning 10,000; Sichuan 10,100); crude corn oil is offered at 8,500-8,600 CNY/tonne. (Hebei 8,350-8,600 CNY/tonne; Henan 8,500; Inner Mongolia 8,300).

Chinese millers still have sentiment in propping up prices as the cost remains high and there is a rise in corn germ prices, which is positive to the market. But spot corn oil stays at high prices. And its supplies are increasing due to a pickup in operation rates, whilst downstream buyers have little appetite under dismal demand. These are pressuring the market. Overall, corn oil market is predicted to keep firm in the short run.

(USD $1=CNY ¥6.57)