Today (Feb. 26th), 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. China and the U.S. have made substantial progress in trade talks, where US President announced on Sunday to delay tariff hikes on Chinese goods and China pledged to buy more US soybeans. Meanwhile, Brazil is now cutting its 2018/19 crops, by 45% till now. Domestic soybean supply will probably increase later. But domestic participants tend to wait on the sidelines now on account of tepid trading in distribution market. In general, the market will likely stay stable to fluctuate at a narrow range recently. 

      Cottonseed: Cottonseed prices today are stable with a decline of 0.01 yuan/kg for some CNF prices. The trade is still not active yet and the purchase is cautious given that the cottonseed crush is under great loss and there has been some stock ahead of holiday in some cottonseed oil mills. However, with cotton ginning mills' mindset to hold onto goods for higher prices as the cottonseed prices are at a low level among these years and the supplies are less and less, in the short run cottonseed is likely to stay stable with weak fluctuations, and buyers are suggested to maintain wait-and-see attitudes for present when the market outlook is still not optimistic.

      Oils: 

      Summary: US soybean just inched higher last night, but oil futures reverse their rises to fall on the Dalian Commodity Exchange today. In the physicals, soybean oil and palm oil both post declines. Soybean oil inventory has snapped its trend to increase by 4% weekly to 1,365 million tonne due to upward operation rate in domestic oil mills and downward demand after the festival, and edible palm oil stocks has also grown by 1% weekly to 780,000 tonnes. For an earlier-than-anticipated pickup in soybean oil inventory, oil prices turned down at a sizable pace. Besides, sustained appreciation of the RMB will bring import cost reductions. Meanwhile, China and the U.S. have made great progress in talks, after which their two Presidents will likely meet in March to strike a deal and China may buy additional 10 million tonnes of US soybean. By the way, a state-owned enterprise in Donguan have begun to process its US soybeans purchases before then, so soybean supply will see few barriers. Short-term oil market will fluctuate to adjust upon growing supply, and buyers can briefly wait. 

      Soybean oil: GB Grade I soybean oil is priced at 5,580-5,710 yuan/tonne in domestic coastal areas, down by 30-60 yuan/tonne. (Tianjin 5,660-5,670, Rizhao 5,690, Zhangjiagang 5,710, and Guangzhou 5,570-5,590).

      Palm oil: 24-degree palm oil is mainly priced at 4,510-4,650 yuan/tonne in coastal areas, down 70-120 yuan/tonne. (Tianjin 4,610-4,620, down 70; Rizhao 4,600, down 120; Zhangjiagang 4,580, down 70; Guangzhou 4,510, down 90; and Xiamen 4,640-4,650).

      Imported rapeseed oil: The price for imported rapeseed oil steps down today, of which it is 6330-6590 yuan/tonne in coastal areas, down by 20-30 yuan/tonne. (Fujian not offered, Guangdong 6,450 and Guangxi 6,630). Inventories of soybean oil and rapeseed oil have both increased when demand for oils has entered into slack season. Moreover, Chinese importers barreled 5,000 tonnes of crude rapeseed oil yesterday and some today for its healthy margins. Besides, rapeseed supply will increase later for a sign of a thaw in the relationship between China and Canada since China and the United States have made substantial progress in trade talks. Rapeseed oil market thus falls bearish, and will probably maintain its fluctuations. Buyers can wait on the sidelines for the moment. 

      Cottonseed oil: Cottonseed oil today stays stable with a rise of 80 yuan/tonne. Cottonseed oil mills are waiting for a higher offers given their low operation rates and output. However, the market is curbed by the stock rebound, the big decline of soybean oil prices, and the the limited blending volume of cottonseed oil, as well as the buyers' cautiousness about market involvement for the U.S.-China trade talks were good, and U.S. will delay tariff increases on China, and there will be a Summit for President Xi and Donald Trump in March to finalize the trade agreement. In the short run cottonseed oil is likely to go with fluctuations.

      (USD $1=CNY 6.70)