Today (Oct. 17), 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 70 yuan/tonne from yesterday at 4100 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 as China plans to speed up its purchases of US agricultural products, Foreign Ministry spokesman said. Short-term imported soybeans for distribution are likely to be steady with weak momentum.

Cottonseed: Cottonseed prices decline by 0.01-0.04 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, the price of Xinjiang cottonseed delivered to inland oil mills also falls due to the lower freight from Xinjiang to inland. Moreover, South Xinjiang cottonseed still not goes marketing in huge quantities. With the increasing supply of new cottonseed, short-term cottonseed prices mainly fall back with fluctuations, but the declines may not be too much. Buyers can take a hand-to-mouth purchasing strategy.

Summary: US soybean futures fell last night on quickening crop harvests, along with uncertainty about the terms of US-China trade pact. And oil futures slow down gains on the Dalian Commodity Exchange (DCE) today. In the spot markets, soybean oil and palm oil increase by 10-70 yuan/tonne in lessened trading. President Donald Trump said a trade deal with China probably would not be signed until he meets with Chinese leaders at the APEC in November, according to a report by Bloomberg. And China’s Ministry of Foreign Affairs confirmed that China would accelerate its purchases of US agricultural products. These will help keep US soybean prices from huge losses. Mills want to raise prices as they have a lot of outstanding contracts, but they will also raise soybean crush, under which soybean oil stocks will keep increasing. The oil market has adequate supply but slack demand at the moment. With this round of gains, the crush margins of soybeans from Brazil and US PNW rally to around 200 yuan/tonne on the DCE. Short-term oil market is predicted to have limited space for further rises and may follow futures to fluctuate frequently. Buyers are suggested not to chase up prices excessively. 

Soybean oil: GB Grade I soybean oil is mainly priced at 6,040-6,160 yuan/tonne in domestic coastal areas, up 10-70 yuan/tonne. (Tianjin traders 6,040-6,050, Rizhao traders 6,050, Zhangjiagang traders 6,160, and Guangzhou traders 6,080-6,090). 

Palm oil: RBD palm olein is mainly priced at 4,780-4,950 yuan/tonne in coastal areas, up 10-40 yuan/tonne. (Tianjin traders 4,880-4,890, up 10; Rizhao traders 4,930-4,950, up 30; Zhangjiagang traders 4,880, up 20; Guangzhou traders 4,780, up 40; and Xiamen 4,840, up 40).

Imported rapeseed oil: Imported rapeseed oil edges higherin price today, of which it settles up 10-20 yuan/tonne at 7,330-7,430 yuan/tonne in coastal areas. (Fujian 7,330, up 20; Guangdong yet offered; and Guangxi 7,430, 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 US farmers are harvesting their soybean crops now and are about to put them on the market. Overall, rapeseed oil market is predicted to be range-bound and choppy at the high level, and buyers are suggested not to chase up prices excessively.

Cottonseed oil: Cottonseed oil price stays stable with several declines of 70 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 continue rising. Spot soybean oil and spot palm oil increases by 10-70 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.