Today (May 28th), the market for oilseeds and oils in China is shown as follows:

 

      Oilseeds:

      Imported soybean: Imported soybean price is steady today, among which non-GM Canadian soybean is not offered for out of stock, and non-GM Russian soybean is unchanged at 3,450 yuan/tonne from yesterday, non-GM Kazakhstan soybean is unchanged at 4,250 yuan/tonne from yesterday. China's soybean market is favourable on traders' optimistic outlook. The arrivals in China's ports are little, while the demand is quite good. Besides, The US soybean import is restricted as no new progress for U.S.-China trade talks. However, the bumper crop harvest in South America and huge global supply still curbs China's market. Short-term prices likely maintain stable with strong momentum.

      Cottonseed: Cottonseed prices today are stable with some rises of 0.04 yuan/kg due to the decreasing cottonseed quantity putting pressure on market supply and the optimistic outlook supporting traders' selling-loath mood. However, the cottonseed trading is not much as oil mills are reluctant to purchase and some mills mainly use its own stock due to the high price of cottonseed and poor crush margin. Short-term cottonseed is likely to go strong. Buyers thereby had better make proper replenishment upon low prices rather than chase high bids too far.

      Oils: 

      Summary: U.S. soybean were unavailable as the exchanged was closed yesterday, and oil futures extend moderate rises on the Dalian Commodity Exchange today. In spot market, soybean oil goes up 10-20 yuan/tonne, and palm oil keeps steady, with fair trading at low prices. South American soybeans have seen rising premiums pushed by ongoing trade disputes between Beijing and Washington, thus lifting soybean import cost. Meanwhile, some mills have halted for swollen soybean meal or oil inventories, so soybean oil inventory has declined by 0.3% weekly to 1.44 mln tonnes. And palm oil stockpiles have also fallen by 7.5% to 750,000 tonnes. Besides, rapeseed and its oil imports have faced a block amid ongoing tensions between China and Canada. Therefore, domestic oil futures are buoyed to extend rises. But domestic mills are active in buying soybeans and keeping their utilization rate high due to good margins, coupled with strong trading of soybean meal, so that traders are still taking the arbitrage of buying meals and selling oils. This is a restrict on oil price rises. Growing speculation on U.S. soybean weather may support oils to post modest rebounds in fluctuations in the short term. Buyers can make replenishment on the dips to keep safety stockpiles. 

      Soybean oil: GB Grade I soybean oil is mainly priced at 5,180-5,300 yuan/tonne in domestic coastal areas, up by 10-20 yuan/tonne. (Tianjin 5,180-5,190, Rizhao 5,210, and Zhangjiagang 5,300, and Guangzhou 5,240-5,250).

      Palm oil: 24-degree palm oil is mainly priced at 4,300-4,340 yuan/tonne in coastal areas. (Tianjin 4,320-4,330; Rizhao 4,340; Zhangjiagang 4,300, unchanged; Guangzhou 4,330; and Xiamen not offered).

      Imported rapeseed oil: Imported rapeseed oil stays basically stable today, of which it settle at 7,080-7,200 yuan/tonne in coastal areas. (Fujian 7,080, stable; Guangdong not offered; and Guangxi 7,200, stable). It will be troublesome for buyers to import rapeseed and oil from Canada amid strict inspection procedures and diplomatic tensions, and during this period, rapeseed oil will remain its high prices. However, rapeseed oil market has few buyers recently as its demand is severely influenced by its enlarging spread with soybean oil and palm oil whose inventories are huge, and domestic mills are keeping their utilization rate high for handsome margins in South American crops. This has been a drag on rapeseed oil market. Overall, rapeseed oil may maintain its high prices, but buyers had better not drive prices up due to uncertainties in policies. 

      Cottonseed oil: Cottonseed oil today stays stable with some fluctuations of 50 yuan/tonne when poor crush margins result in low operation rates and output and cottonseed prices are strong. Besides, today oils on DCE keep a modest rebound, and spots soybean oil are up 10-20 yuan/tonne. However, the upward potential of cottonseed oil is curbed by the limited cottonseed oil volume for blending, thin turnover of new orders, and high fundamental pressure in oils market. Short-term cottonseed oil is likely to remain relatively stable and buyers are suggested to take a hand-to-mouth buying strategy.

       (USD $1=CNY 6.90)