Today (Oct. 16), the market for oilseeds and oils in China is shown as follows:

 

Imported soybean: Imported soybean price is steady today, among which Canada soybean with 41% protein is down 180 yuan/tonne from yesterday at 4170 yuan/tonne, Myanmar soybean is unchanged from yesterday at 4450 yuan/tonne, and Ukraine soybean is unchanged from yesterday at 3470 yuan/tonne. Imported soybeans are bearish when the supply increases greatly on the marketing of China soybean with bumper harvest, and more US soybean will be imported after the ease of trade relationship. Chinese companies have purchased 20 million metric tons of soybeans from the United States this year, and China also plans to speed up its purchases of US agricultural products, Foreign Ministry spokesman Geng Shuang said on Tuesday. Short-term imported soybeans for distribution are likely to be steady with weak momentum.

Cottonseed: Cottonseed prices decline by 0.02-0.04 yuan/kg today. Oil mills have not stockpiled cottonseed yet. Mills mostly buy on immediate demand, so the trading volume is limited, which will drag down the cottonseed market. Besides, South Xinjiang cottonseed still not goes marketing in huge quantities. With the increasing supply of cottonseed, short-term cottonseed prices mainly fall back with fluctuations, but the declines may not be too much. And also, with a sign of rebound of staple oils and meals today, buyers can make small replenishment on the dips.

Summary: US soybean fell after investors booked profits as it hit a multi-month high, but soybean oil closed with gains on US biofuel mandate changes and the arbitrage of buying oils and selling meals. Oil futures reverse losses to rebound on the Dalian Commodity Exchange today. In the spot markets, soybean oil rises by 40-60 yuan/tonne and palm oil by 80-100 yuan/tonne, but the trading is tepid as buyers remain cautious, apart from some low-level purchases. The bad weather in the US Midwest has posed threats to late-mature soybean crops. China said it would accelerate the purchases of US farm products. Soybean crush margins now remain slender as Chinese buyers now have to pay more import cost due to high US soybean prices. The backlog of contracts further pushes mills to raise their prices. But soybean crush will return to high level in these two weeks, while the demand for oils is slack after the holidays, so soybean oil stocks will be mounting gradually. The oil market still has little upward potential subdued by weak fundamentals and may follow futures to fluctuate frequently. Buyers are suggested not to chase after high prices excessively. 

Soybean oil: GB Grade I soybean oil is mainly priced at 6,000-6,130 yuan/tonne in domestic coastal areas, up 40-60 yuan/tonne. (Tianjin traders 6,000-6,010, Rizhao traders 6,020, Zhangjiagang traders 6,130, and Guangzhou traders 6,030). 

Palm oil: RBD palm olein is mainly priced at 4,740-4,900 yuan/tonne in coastal areas, up 80-100 yuan/tonne. (Tianjin traders 4,850-4,860, up 80; Rizhao traders 4,900, up 100; Zhangjiagang traders 4,860, up 100; Guangzhou traders 4,740, up 100; and Xiamen 4,800, up 100).

Imported rapeseed oil: Imported rapeseed oil edges higherin price today, of which it settlesup 10-20 yuan/tonne at 7,310-7,400 yuan/tonne in coastal areas. (Fujian 7,310, up 10; Guangdong yet offered; and Guangxi 7,400, up 20).Domestic rapeseed is in tight supply as China and Canada have yet solve their issues, which is now underpinning the rapeseed oil prices. But the demand for rapeseed oil is under the impact of its huge price gap with soybean oil and palm oil. Domestic oil market has adequate supplies now, and soybean oil stocks will be piling higher as soybean crush will return to a high level. Therefore, rapeseed oil market is still under pressure. Overall, the market may have small upward momentum and will probably see frequent fluctuations, and buyers are suggested not to chase after high prices excessively. 

Cottonseed oil: Cottonseed oil price stays stable with some declines of 50-150 yuan/tonne today. The cottonseed oil market is weighed down by the rising operation rate and limited consumption of cottonseed oil as blending oil due to an off-season for oils. But oils on DCE today stop declining and start rebounding. Spot soybean oil increases by 40-60 yuan/tonne, and spot palm oil increases by 80-100 yuan/tonne. So oil mills tend to prop up prices, which may be beneficial to limit the declines. As cottonseed oil market has not stopped falling yet, buyers can stay on the sideline or buy on a hand-to-mouth basis.