Today (Feb. 18th), the market for oilseeds and oils in China is shown as follows:

 

      Oilseeds:

      Imported soybean: Imported soybean price keeps steady today, among which non-GM Canadian soybean is not offered for out of stock and the GM old soybean is unchanged at 3,980 yuan/tonne, and non-GM Russian soybean is at 3,200 yuan/tonne and the GM is not offered. The market is upbeat that China and the United States will likely hammer out a structural trade deal during their talks in Washington this week. And China may purchase more US soybeans for this, which will multiply domestic soybean supply. Meanwhile, domestic distribution market for imported soybean remains tepid as holders are bearish to later market, so that domestic imported soybean market has fallen negative. In general, imported soybean price will likely stay stable with narrow adjustments in distribution market recently.

      Cottonseed: Today cottonseed prices are stable. The trading is not active for the losses of crushing, the low demand owing to the remaining stock before holiday, as well as that most oil mills haven't resumed the purchases. However, China's cottonseed market is supported by the low trading of cotton ginning plants in view of less and less cottonseed supply and the prices which is at the low level of recent years. The cottonseed in the short run is likely to stay stable with move in narrow range. Buyers are suggested to take a hand-to-mouth buying strategy.

      Oils: 

      Summary: US soybean went higher upon new progress in trade talks between China and the United States, and oil futures also post modest rebounds on the Dalian Commodity Exchange as traders take the arbitrage of buying oils and selling meals. In the spots market, soybean oil broadly increases and palm oil partially with some purchases at low prices. Meal prices remain low due to the African swine fever. Moreover, soybean oil stocks have been reducing especially after drastic declines in operation rate over the Spring Festival, in addition to fewer arrivals of soybean in recent two months. As oil mills are propping up prices, oil market has embraced for bounces today, although the space is limited by its tender demand after the festival. Short-term oil market is predicted to post range-bound fluctuations frequently. Participants can pay attention to US-China trade talks in Washington. 

      Soybean oil: GB Grade I soybean oil is priced at 5,650-5,760 yuan/tonne in domestic coastal areas, mostly up by 10-50 yuan/tonne. (Tianjin 5,710-5,720, Rizhao 5,720, Zhangjiagang 5,760, and Guangzhou 5,650). 

      Palm oil: 24-degree palm oil is mainly priced at 4,660-,4780 yuan/tonne in coastal areas, down by 10 yuan/tonne partially. (Tianjin 4,770-4,780, up 10; Rizhao 4,770, unchanged; Zhangjiagang 4,720, up 20; Guangzhou 4,660-4,670, unchanged; and Xiamen not offered).

      Imported rapeseed oil: The price for imported rapeseed oil goes up today, of which it is 6,480-6,640 yuan/tonne in coastal areas, up by 10-30 yuan/tonne. (Fujian not offered; Guangdong 6,420; and Guangxi 6,520, up 20). Rapeseed oil stocks have decreased by 4% to 530,000 tonnes in coastal areas amid low operation rate. Moreover, rapeseed supply may start tightening at the end of this quarter now that it takes another 15 days to get the approval and issuance of certificates for Canadian imported rapeseed and GMO crude rapeseed oil amid strained relations between China and Canada. And rapeseed oil market is now bolstered as traders take the arbitrage of buying oils and selling meals on account of low meal prices under ongoing African swine fever. Rapeseed oil market is predicted to maintain fluctuations to consolidate, and buyers can briefly take hand-to-mouth buying. 

      Cottonseed oil: Today cottonseed oil prices mostly stay stable while some prices have a slight rise of 50 yuan/tonne because with the new progress of China-U.S. trade talks, the US soybeans last Friday went up, and the arbitrage of buying oils and selling meals triggered a brief bounce in China's oils market with soybean oil spots rising 10-50 yuan/tonne; moreover, oil mills are waiting for a higher offers due to the low operation rates and limited output. However, the upward potentials in the shorter term is limited for the off-season after holiday and the low blending volume of cottonseed oil. The prices are likely to stay stable with strong fluctuation.

      (USD $1=CNY 6.77)