Today (Feb. 28th), 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 3,970 yuan/tonne, and non-GM Russian soybean is 3,200 yuan/tonne and the GM not offered. Domestic soybean supply will likely increase now that soybean harvests go well in Brazil and China has offered to buy another 10 million tonnes of US soybeans. However, traders still tend to stay aside on account of tepid trading on distribution market and uncertainties in US-China trade talks, so short-term soybean distribution prices will broadly stay stable to adjust narrowly. 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 0.01-0.03 yuan/kg. 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 edged down overnight and oil futures fluctuate at a narrow range on the Dalian Commodity Exchange today after US chief trade negotiator said in Congress that that China has pledged to purchase an additional $1.2 trillion of U.S. products over six years would not solve trade issues, and the United States would need to maintain the threat of tariffs on Chinese goods for years even if Washington and Beijing manged to strike a deal to push China to make structural policy changes. In the physicals, soybean oil and palm oil steadily fluctuate in tepid trade. Soybean oil stockpiles regain upon slack demand after the festival. In spite of slower declines today, oil market may fluctuate frequently on the back of futures for a lack of rebound impetus, and buyers can maintain light stocks and take hand-to-mouth buying.

      Soybean oil: GB Grade I soybean oil is mainly priced at 5,600-5,700 yuan/tonne in domestic coastal areas, some fluctuating by 10-20 yuan/tonne. (Tianjin 5,650-5,660, Rizhao 5,680, Zhangjiagang 5,700, and Guangzhou 5,580).

      Palm oil: 24-degree palm oil is mainly priced at 4,450-4,590 yuan/tonne in coastal areas, down by 40-50 yuan/tonne partially. (Tianjin 4,580-4,590; Rizhao 4,560, down 40; Zhangjiagang 4,530; Guangzhou 4,450- 4,460; and Xiamen 4,550, down 50).

      Imported rapeseed oil: Prices for imported rapeseed oil stay stable with some declines today, of which it is 6,420-6,580 yuan/tonne in coastal areas, down by 10 yuan/tonne partially. (Fujian and Guangdong not offered, and Guangxi 6,430). There are increases in inventories of soybean oil and rapeseed oil amid slack demand. Chinese importers have bought 20,000 tonnes of crude rapeseed oil this week for its better margins and sustained appreciation of the RMB recently. Besides, US and China presidents are expected to meet in March to strike a deal to end the trade war, and China has offered to buy an additional 10 million tonnes of US soybean. Without any support from bullish factors, domestic rapeseed oil market will likely follow futures to fluctuate to go weak in the short term, and buyers can briefly keep light stockpiles and take hand-to-mouth buying. 

      Cottonseed oil: Cottonseed oil today revises early declines to a steady level owing to the low operation rates and output in cottonseed oil mills and a slight rise with fluctuations for soybean oil on DCE. However, as the U.S.-China trade talks were good and there will be a Summit for President Xi and Donald Trump in March to finalize the trade agreement, buyers maintain cautious about market involvement. Add the limited blending volume of cottonseed oil and in the short run cottonseed oil is likely to fluctuate in narrow range. Buyers are suggested to stay on the sideline for the present.

      (USD $1=CNY 6.69)