Today (Feb. 20th), 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. Expectations grow that China and the United States will finalize a trade deal during their talks in Washington on Thursday and Friday this week. If so, domestic soybean supply will multiply for China may purchase more US soybeans. And Chinese importers have already bought 20 cargoes of Brazilian soybeans last week. But the tepid trading in the distribution market is still unfavorable to overall domestic market for imported soybean. In general, imported soybean price will likely stay stable with narrow adjustments in distribution market recently.

      Cottonseed: Today cottonseed prices are stable. The oils and meal prices are weak and 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 purchase. 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 maintain wait-and-see attitudes.

      Oils: 

      Summary: US soybean futures overnight touched the lowest point in four weeks after investors liquidated their long positions, and oil futures also reverse their gains to decline on the Dalian Commodity Exchange. In the physicals, soybean oil and palm oil both slip amid light trading. Oil market today is dragged down by weak demands and a lack of bullish stimulation. And optimism is growing about a trade deal as China and the US are to hold the final round of talks on Thursday and Friday before the deadline of March 2. Oil market may see another decline if the two countries finally make an agreement. But oil mills now still work hard to support the price as meal side is dark amid the rampant African swine fever. Overall, domestic oil market will have little space for price declines in the short term, and buyers can just stay on the sidelines. 

      Soybean oil: GB Grade I soybean oil is priced at 5,640-5,760 yuan/tonne in domestic coastal areas, down by 20-60 yuan/tonne. (Tianjin 5,700-5,710, Rizhao 5,710, Zhangjiagang 5,760, and Guangzhou 5,640-5,650).

      Palm oil: 24-degree palm oil is mainly priced at 4,640-4,770 yuan/tonne in coastal areas, down by 50-100 yuan/tonne. (Tianjin 4,760-4,770, down 50; Rizhao 4,740, down 60; Zhangjiagang 4,700, down 100; Guangzhou 4,640, down 80; and Xiamen not offered).

      Imported rapeseed oil: The price for imported rapeseed oil goes down today, of which it is 6,500-6,670 yuan/tonne in coastal areas, down by 30-50 yuan/tone. (Fujian not offered; Guangdong 6,500; and Guangxi 6,540, down 50). Rapeseed oil market is dragged down to experience short-term declines by a lot of fundamentals. Palm oil on the Bursa Malaysia Derivatives Exchange slips over 1% for its production remains high compared to the same period in previous years. Demand for edible oil has entered into the off-season. Besides, onshore RMB has topped 6.73 against USD to reach its month high. And the market is optimistic that China and the United States will finally reach a deal during their talks in Washington on Thursday and Friday. But rapeseed oil market is still shored up to consolidate in fluctuation by the arbitrage of buying oils and selling meals. Buyers are suggested to just wait for the moment. 

      Cottonseed oil: Cottonseed oil today mostly stays stable with fluctuation in the range of 50 yuan/tonne for some prices. For the closing of long positions US soybeans overnight was at the lowest among the recent four weeks, and oils on DCE today become decline while soybean oil spots fall 20-60 yuan/tonne and palm oil spots fall 50-100 yuan/tonne amid stagnant turnover. Besides, in the off season after holiday, with limited blending volume of cottonseed oil, buyers maintain cautious about high bids amid stagnant turnover. However, oil mills are waiting for higher offers due to low operation rates and output in cottonseed oil mills. In the short run the prices are likely to stay stable with some fluctuations. Buyers are suggested to wait and see as bulk oils experience a small declines.

      (USD $1=CNY 6.72)