Today (Mar 25), 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 mainly keep steady and partly fluctuate by 0.02-0.03 CNY/kg 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 is predicted to continue fluctuating at a narrow range.

Oils: 

Summary: U.S. soybean futures further rose on Wednesday supported by tightness in supply and as the United States’ green energy push would bolster the demand for biodiesel. Oils futures swing higher but linger around the previous close on China’s Dalian Commodity Exchange today. In the spot markets, soybean oil fluctuates by 10-50 CNY/tonne and palm oil mostly goes down 30-40 CNY/tonne, both in thin trade.

China’s monthly soybean imports are forecast to surpass 10 mln tonnes in May-July, for Brazilian producers will ramp up marketing and exporting now that harvests are half completed. Dalian futures movements are also not stable amid a myriad of uncertain factors in external markets, so spot oils prices also follow to adjust frequently. But China’s weekly soybean crush stays at a low level of just over 1.50 mln tonnes, and soybean oil, palm oil and rapeseed oil stocks are all in a downtrend. Fundamentals are still bullish. The overall oils market is predicted to keep its strength in frequent fluctuations, and 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, fluctuating by 10-50 CNY/tonne. (Tianjin traders 9960; Rizhao traders 9900; Zhangjiagang traders 10160; and Guangzhou traders 9960-10010). 

Palm oil: RBD palm olein is mainly priced at 8,340-8,420 CNY/tonne in coastal areas, mostly down 30-40 CNY/tonne. (Tianjin traders 8420, down 30; Rizhao traders not available; Zhangjiagang traders 8340, down 40; Guangzhou traders 8400, down 30; and Xiamen not available).

Rapeseed oil: U.S. soybean futures closed higher on Wednesday, and rapeseed oil futures continue climbing on China’s Zhengzhou Commodity Exchange today. Spot rapeseed oil prices settle up 20-30 CNY at 10,990-11,080 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, so the overall supply is not under pressure now. In addition, net crush margins for Dalian soybeans and Zhengzhou rapeseed are both at loss now. Rapeseed oil market is predicted to strengthen at the high level in the short term. But China is underway to sell crude soybean oil on auctions, and its monthly soybean imports are forecast to exceed 10 mln tonnes in May-July as Brazilian soybeans are flowing into the market, so rapeseed oil market will fluctuate frequently at the high level in near term. Participants are suggested to remain cautious.

Cottonseed oil: Cottonseed oil prices drop by 100 CNY/tonne in several regions of China today. CBOT soybean futures further rose on Wednesday. Oils futures fluctuate to go up today but hover around the previous close on Dalian Commodity Exchange. In the spot market, soybean oil fluctuates by 10-50 CNY/tonne and palm oil mostly decreases by 30-40 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 continues to edge lower. For the moment, the stockpiles of palm oil, soybean oil as well as rapeseed oil keep falling. Hence, oils remain bullish on fundamentals. Besides, a majority of oil plants are idled currently, which restricts the downside for cottonseed oil market. Overall, cottonseed oil market will still fluctuate at the high level.

Sunflower oil: Sunflower oil prices steady in China today. Grade I imported refined sunflower oil is offered at 13,000-14,300 CNY/tonne; and crude sunflower oil is 13,000 CNY.

The United States’ green energy push will bolster the demand for biodiesel, and U.S. soybean supply is getting tighter. Besides, China’s weekly soybean crush stays at a low level of just over 1.50 mln tonnes, and soybean oil, palm oil and rapeseed oil stocks are all in a downtrend. Bullish fundamental will continue supporting sunflower oil market. But downstream buyers tend to buy on immediate demand due to high sunflower oil prices, which is adding bearish sentiment to the market. Overall, sunflower oil market is predicted to fluctuate in the short term.

Corn oil: Corn oil prices are stable with a partial decline in China today. Grade I corn oil is 12,500-12,800 CNY/tonne, down 500 CNY. (Shandong 12,500-12,800 CNY, down 500; Hebei 12,500; Liaoning 12,500; and Sichuan no offer); and crude corn oil is offered at 10,300-11,200 CNY/tonne. (Henan 10,300; Hebei 10,800-11,200; and Inner Mongolia and Heilongjiang no offers).

Downstream purchasers are acting with caution and keep themselves to sidelines since corn oil prices have climbed to a high level. Soybean crop harvests are half completed in Brazil so that local producers will ramp up marketing and exporting, under which monthly soybean arrivals at China’s ports may surpass 10 mln tonnes in May-July. This may affect corn oil market. But domestic corn millers are still supporting prices due to high corn germ prices, which is bullish to the market. Overall, corn oil market in China is predicted to fluctuate to downside in the near term.

(USD $1=CNY ¥6.53)