Today (Mar 24), the market for oilseeds and oils in China is shown as follows:

Oilseeds:

Imported soybean: Imported soybean supply keeps increasing at domestic ports, while the market demand remains tepid and downstream buyers are not active. These are negative to the market. Meanwhile, U.S. soybean futures are easing from the high level on improving weather in South America and on cooling export demand for U.S. soybeans, so the support from the import cost side is subdued. In the short run, imported soybean market in China is predicted to steady with a slight decline, and participants can keep an eye on imported soybean arrivals and demand in China.

Cottonseed: Cottonseed prices in China keep steady today. Cottonseed crushing mills keep facing losses on account of early excessive growth in cottonseed price. In this case, they are cautious in making purchases in a bid to avoid risk, and mainly fulfill previous contracts or consume inventories. Thus, cottonseed trading is limited in spot market, and traders tend to dampen the price. However, cottonseed production this year is lower than the previous year. And ginning factories in Xinjiang are mostly shut down, seeing limited availability for cottonseed in market. This has offered a support to cottonseed market. Underpinned by tight supply of cottonseed, cottonseed market will continue fluctuating at a narrow range.

Oils: 

Summary: U.S. soybean and soyoil futures continued gains on Tuesday as U.S. President Joe Biden's green energy push was expected to bolster the demand for biodiesel. But crude oil prices plunged about 6% on Tuesday on a rise in production and concerns over new pandemic containment measures and slow vaccine rollouts in Europe. Oils futures also retreat on China’s Dalian Commodity Exchange today in the wake of Tuesday’s steep gains. In the spot markets, soybean oil and palm oil go down 30-80 CNY/tonne, both in thin trade.

The decline in Dalian futures today is mainly out of external factors and warmer sentiment in risk aversion. Domestic soybean crush still maintains at a low level of just over 1.50 mln tonnes per week for lack of beans, and commercial soybean oil stocks have further declined to 730,000 tonnes. And port edible palm oil stocks dropped 11% on week to below 500,000 tonnes. The oils market is predicted to have little downside space on bullish fundamentals, and to keep its strength in fluctuation. But the volatile financial market recently and a brisker pace in Brazilian soybean marketing will likely add to fluctuations in the oils market, so it is necessary to remain cautious.

Soybean oil: GB Grade I soybean oil is mainly priced at 9,900-10,160 CNY/tonne in domestic coastal areas, a decline of 30-100 CNY/tonne. (Tianjin traders 9960-10000; Rizhao traders 9900; Zhangjiagang traders 10160; and Guangzhou traders 10040-10060). 

Palm oil: RBD palm olein is mainly priced at 8,400-8,490 CNY/tonne in coastal areas, mostly down 30-60 CNY/tonne. (Tianjin traders 8470-8490, down 60; Rizhao traders not available; Zhangjiagang traders 8400, down 40; Guangzhou traders 8450-8470, down 30; and Xiamen not available).

Rapeseed oil: U.S. soybean futures closed higher on Tuesday, and rapeseed oil futures continue climbing on China’s Zhengzhou Commodity Exchange today. Spot rapeseed oil prices settle up 10 CNY at 11,010-11,060 CNY/tonne in coastal regions in thin trading.

China’s soybean oil, palm oil and rapeseed oil stocks are all lower than this time in previous years, and not a few millers will suspend the crush periodically due to a lack of beans in March and April. In addition, net crush margins for imported U.S. soybeans are negative on Dalian exchange. Hence, rapeseed oil market is predicted to keep its strength at the high level. But China continues selling crude soybean oil at auctions, and its monthly soybean arrivals at ports are expected to go above 10 mln tonnes in both May and June, for Brazilian soybeans are flowing into the market; thus, rapeseed oil market may fluctuate frequently in near term. Participants are suggested to remain cautious.

Cottonseed oil: Cottonseed oil prices in part drop by 100-250 CNY/tonne in China today. CBOT soybean and soyoil futures further rose on Tuesday. But crude oil took a plunge of over 6%. Oils futures edge lower today on Dalian Commodity Exchange after yesterday’s sharp gains. In the spot market, soybean oil and palm oil fall by 30-80 CNY/tonne. Cottonseed oil trading is tepid due to current sluggish demand in market, so many factories mainly fulfill the previous contracts. As a result, cottonseed oil price is depressed. For the moment, the stockpiles of palm oil and soybean oil keep falling, and rapeseed oil stocks stay at a low level likewise. Hence, oils remain bullish on fundamentals. Besides, a majority of oil plants are idled currently, which boosts cottonseed oil price. These have all limited the downside for cottonseed oil market.

Sunflower oil: Sunflower oil prices steady with a partial decline in China today. Grade I imported refined sunflower oil is offered at 13,000-14,300 CNY/tonne; and crude sunflower oil is not offered.

Oil prices plunged about 6% on Tuesday on a rise in production and concerns over new pandemic containment measures and slow vaccine rollouts in Europe. Dalian oils futures also ease today in the wake of steep gains in the previous session, and spot soybean oil and palm oil go down 30-80 CNY/tonne, which is bearish to sunflower oil market. But sunflower oil import cost is still lifted by high prices in Ukraine, so Chinese millers have strong will to support prices. Overall, sunflower oil market is predicted to fluctuate in the short term.

Corn oil: Corn oil prices are stable with some mixed in China today. Grade I corn oil price is 12,500-13,000 CNY/tonne, fluctuating by 200-500 CNY. (Shandong 12,500-13,000 CNY, down 500; Hebei no offers; Liaoning 12,500, up 200; and Sichuan no offers); and crude corn oil is offered at 10,300-11,200 CNY/tonne. (Henan 10,300; Hebei 10,800-11,200; and Inner Mongolia no offers).

High corn oil prices keep downstream purchasers remain cautious, and it rival sunflower oil prices continue a downtrend. Besides, Dalian oils futures also ease today in the wake of steep gains in the previous session, and spot soybean oil and palm oil go down 30-80 CNY/tonne. These are affecting corn oil market. But domestic millers are still supporting corn oil prices due to high corn germ prices, which is positive to the market. Overall, corn oil market in China is predicted to fluctuate in the near term.

(USD $1=CNY ¥6.52)