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

 

Imported soybean: Imported soybeans are priced steadily today, among which Canada soybean with 41% protein is unchanged from last Friday at 3,980 yuan/tonne, and Ukraine soybean at 3,400 yuan/tonne. Imported soybean market gets weighed down by the adequate supply of Chinese soybeans. High-level trade negotiators from China and the US had a phone talk last Friday, and a report by Reuters said that the two sides were “close to finalizing” some parts of a trade agreement and would have a phone talk again in the near future. With talks underway, China will purchase more US soybeans later, which is bad to domestic market. Overall, short-term market for imported soybeans will likely stay stable with a weakening trend in the short term. 

Cottonseed: Cottonseed prices rise by 0.01-0.04 yuan/kg today. There are fewer North Xinjiang cottonseeds, and South Xinjiang cottonseeds have not gone marketing in huge quantities yet. Moreover, the trading volume is also increasing with a rise of operation rate. In consequence, cottonseed market is buoyed by these factors. However, the rises of cottonseed are also limited by increasing Xinjiang cottonseed, and oils and meals stay strong. It is predicted that short-term cottonseed will rebound with fluctuations, and buyers can make replenishment on the dips.

Summary: US soybean futures fell on an accelerating harvest and on disappointing Chinese purchases. China and the US are close to finalizing their phase one agreement  and China is likely to import soybean meal, cottonseed meal and meat from Brazil after Brazilian President visited Beijing, so oil futures are fluctuating on the Dalian Commodity Exchange today. DCE soybean oil futures post moderate declines, and spot soybean oil prices partially go down 20 yuan/tonne. DCE palm oil futures drop in early trading and then fluctuate to rise, and spot palm oil prices fluctuate by 10-80 yuan/tonne. The trading remains tepid in the markets, with some purchases at low levels. Mills have raised their soybean crush higher by 1.3% to 1.75 mln tonnes last week due to handsome crush margins, and the import margins for Argentine crude soybean oil reach 80 yuan/tonne; hence, the oil market have limited space for further rises. But some mills have to suspend their production due to the shortage in commercial supply from late this month to early next month. The outstanding contracts for soybean oil have posted a weekly increase of 7.5% to 1.256 mln tonnes amid strong trading, and its stocks continue to drop by 2% to 1.3145 mln tonnes accordingly. Besides, buyers this year are expected to start preparation for the New Year’s Day and the Spring Festival from late November. Mills now have strong willing for stable and higher prices, so the oil market is predicted to maintain its strong trend later. Participants need to strengthen risk prevention against short-term adjustments, and buyers with enough stocks can wait at the moment. 

Soybean oil: GB Grade I soybean oil is mainly priced at 6,350-6,410 yuan/tonne in domestic coastal areas, some down by 20 yuan/tonne. (Tianjin traders 6,350-6,360, Rizhao traders 6,380, Zhangjiagang traders 6,400, and Guangzhou traders 6,410). 

Palm oil: RBD palm olein is mainly priced at 5,060-5,220 yuan/tonne in coastal areas, some up 50-80yuan/tonne. (Tianjin traders5,180-5,190, up 80; Rizhao traders 5,220, flat; Zhangjiagang traders 5,130, flat; Guangzhou traders 5,060, up 50; and Xiamen yet offered).

Imported rapeseed oil: Imported rapeseed oil declines in price today, of which it settles down 20-30 yuan/tonne at 7,370-7,550 yuan/tonne in coastal areas. (Fujian yet offered; Guangdong yet offered; and Guangxi 7,550, down 30). The demand for rapeseed oil is affected by its enlarged price gap with soybean oil and palm oil, and domestic oil market is in adequate supply but in slack demand at present; hence, rapeseed oil market fluctuates to adjust. But total rapeseed oil stocks fell by 1.9% to 454,000 tonnes last week. And the imports of rapeseed oil and rapeseed from Canada is still troublesome due to pending issues between China and Canada. With tight rapeseed supplies, rapeseed oil prices will probably not drop, and will hopefully maintain its strengthening trend at the high level with some fluctuations. Buyers can wait or buy on immediate demand. 

Cottonseed oil: Cottonseed oil prices increase by 50-200 yuan/tonne today. The trading situation of oils after National Day is better than expected, so factories basically have no stock in hand, which boost the cottonseed oil market. But U.S. and Chinese trade negotiators made a phone call last Friday and were close to nailing down a “Phase 1” trade deal, according to Reuters. Soybean oils on DCE today modestly decline, and spot soybean oil partially down by 20 yuan/tonne. However, the market is still optimistic about oils outlook, so short-term cottonseed oil price may tend to rise with fluctuations. Buyers can maintain safety inventory on the dips.