Today (Dec 25), the market for oilseeds and oils in China is shown as follows:

Oilseeds:

Imported soybean: U.S. Gulf soybean is offered at 4,950 CNY/tonne at Shandong ports today. Some traders are unwilling to sell under tight supply at port now, and the cost import remains high due to a strong trend in U.S. soybean prices, which together bolster imported soybean prices at port to keep strengthening. However, commodity inspections are relax at ports now, and imports of U.S. soybeans are huge, so it is very likely that imported soybean supply will get increasing in China. In the short term, imported soybean market may keep strengthening on bullish factors.

Cottonseed: Cottonseed prices increase by 0.01-0.03 CNY/kg in some regions of China 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 in Shandong have suspended operation due to environmental protection. Hence, they have strong intention to force price down. But cottonseed output this year is lower than the previous year and cottonseed oil prices stay firm, which supports cottonseed market. It is expected that short-term cottonseed price will keep steady and trend up.

Oils: 

Summary: U.S. soybean futures further rose on Thursday, as Argentine port workers would spend Christmas on strike. And on China’s Dalian Commodity Exchange today, oils futures continue moving higher but have notably narrowed down gains. In the spot markets, soybean oil and palm oil go up 20-60 CNY/tonne, both in thin trade.

Malaysian palm oil stocks are expected to continue the downtrend under lower production and higher exports in December, thus bolstering BMD palm oil futures to keep a strong trend. Oil mills in Rizhao are still in downtime under requirements by the environmental protection, and domestic soybean oil stocks are on a decline. It is said that spot markets are in tight supplies in the south of North China. Meanwhile, domestic rapeseed oil stocks still stay low. The oils market is predicted to keep a relatively strong trend with support of bullish factors. Merely, the oils market has been trading low after prices climbed to high levels. And the withdrawal of funds by the end of the year could also disturb Dalian futures. Strike in Argentina will be called off sooner or later, which could also add fluctuations to the market. Participants need to remain informed and stay cautious.

Soybean oil: GB Grade I soybean oil is mainly priced at 8,680-8,860 CNY/tonne in domestic coastal areas, a rise of 20-70 CNY/tonne. (Tianjin traders 8680-8700; Rizhao traders 8700; Zhangjiagang traders 8810-8830; and Guangzhou traders 8860). 

Palm oil: RBD palm olein is mainly priced at 7,330-7,430 CNY/tonne in coastal areas, mostly up 20-90 CNY/tonne. (Tianjin traders 7400-7430, up 60; Rizhao not available; Zhangjiagang traders 7380, up 90; Guangzhou traders 7330-7350, up 20; and Xiamen not available).

Rapeseed oil: U.S. soybean futures further rose on Thursday, as Argentine port workers would spend Christmas on strike. Rapeseed oil futures continue moving higher on China’s Zhengzhou Commodity Exchange today, but gains are smaller. Spot rapeseed oil prices settle up 30-50 CNY at 10,120-10,270 CNY/tonne in coastal regions in tepid trading.

Rapeseed crush in China remains low as the country is less likely to see a detente in tensions with Canada shortly. China’s rapeseed oil supply is tight with only 160,000 tonnes now and soybean oil stocks also keep falling to 1.02 mln tonnes. Fundamentals are still supportive in the oils market, which is propping up rapeseed oil prices. However, soybean arrivals at domestic ports are huge and its supply is thus adequate. And the consumption of rapeseed oil is smaller under its huge price spread with soybean oil and palm oil. In the short term, rapeseed oil market is predicted to stay at the high level with support of bullish factors.

Cottonseed oil: Cottonseed oil prices in part increase by 50-200 CNY/tonne in China today. U.S. soybean futures further rose overnight as Argentine workers strike would last until Christmas holiday. Oils futures move higher on China’s Dalian Commodity Exchange today. In the spot market, soybean oil and palm oil jump 20-60 CNY/tonne. Malaysia’s palm oil production declines while exports grow in Dec 1-25, giving a boost to palm oil on Bursa Malaysia Derivatives. Besides, soybean oil stocks keep falling with soyoil factories in Rizhao idled by environmental protection. Also, rapeseed oil stockpiles are at low levels. Hence, the overall oils market will maintain an uptrend dominated by supportive factors above. Moreover, cottonseed oil millers are facing sustained loss, so that they have certain sentiment in lifting prices. Therefore, it is predicted that short-term cottonseed oil market will go strengthening following bulk oils market.

Sunflower oil: Sunflower oil prices maintain stable with a partial rise of 50-100 CNY/tonne in China today. Grade I imported sunflower oil is offered at 10,150-10,800 CNY/tonne; crude sunoil is offered at 9,700-9,850 CNY/tonne.

U.S. soybean futures further rose on Thursday, as Argentine port workers would spend Christmas on strike. Oils futures continue moving higher but have notably narrowed down gains on China’s Dalian Commodity Exchange today. Spot soybean oil and palm oil both go up. Meanwhile, sunflower oil is in tight supply as a reduction in sunflowerseed production causes a supply woe. Sunflower oil millers have strong sentiment in supporting oil prices, which is positive to the market. However, soybean arrivals at domestic ports remain enormous, and the pandemic becomes more severe in European countries. And as sunflower oil prices have been at a high level recently, downstream manufacturers are cautious and the market is in thin trade, which is adding bearish influence to the market. Overall, sunflower oil market in China is predicted to fluctuate and marginally climb in the short run.

Corn oil: Corn oil prices are stable in China today. Grade I corn oil is offered at 10,000-10,300 CNY/tonne. (Shandong 10,200-10,300 CNY/tonne; Hebei 10,200; Liaoning 10,000; Sichuan not available); crude corn oil is offered at 8,450-8,700 CNY/tonne. (Hebei 8,450-8,600 CNY/tonne; Henan 8,500; Inner Mongolia 8,700).

Domestic corn oil millers have sentiment to raise prices due to sustained loss at present and with the start of the peak season for stocking up packaging oils. But corn oil price itself is high so that most millers tend to stay on the sidelines, which may be adding bearish sentiment to the market. Overall, corn oil market is predicted to keep strengthening.

(USD $1=CNY ¥6.53)