Today (Nov. 6), the market for oilseeds and oils in China is shown as follows:

 

Imported soybean: Imported soybeans keep steady today, among which Kazakhstan soybean is unchanged at 4,160 yuan/tonne, and Ukraine soybean at3,500 yuan/tonne. Domestic soybeans are in adequate supplies, and with smooth progress in talks with the US, China may increase its soybean imports later, which is negative to domestic market. Some soybean grades are of lower stocks at present, which helps support the market. In a hybrid of a bull and a bear, short-term market for imported soybeans will likely stay stable in the short term. 

Cottonseed: Cottonseed prices stay stable with some rises of 0.02-0.06 yuan/kg. There is a decrease in cottonseed production than a year earlier, so cotton ginning mills have a reluctant sale mentality. And cottonseed prices are high and irregular in a thick speculation atmosphere in recent days, so oil mills tend to be more cautious in purchasing. Most oil plants hold a wait-and-see attitude today, and some inland factories even turn to purchase inland cottonseed and carry out the contract. Thus, the rises of cottonseed are dampened by limited trade volume. But cottonseed market still has a rise tendency overall, so buyers can make replenishment on the dips.

Summary: US soybean futures ended lower last night as farmers harvested 75% of their crops at an accelerating pace thanks to clear weather in the Midwest. Oil futures also ease on the Dalian Commodity Exchange today. In the spot markets, soybean oil goes down 30-60 yuan/tonne and palm oil down 10-30 yuan/tonne in tepid trading, with some low-level purchases. DCE crush margins for soybeans still stay at 210-253 yuan/tonne, and the import cost now will be lower as the Chinese yuan soared past 7 yesterday, so importers will continue buying up on soybeans. This is weighing down domestic oil market. But domestic mills have a lot of contracts to fulfill now as soybean oil was trading very well in the past two weeks. Soybean oil stocks will keep falling, especially with lower soybean crush at present. Besides, the Spring Festival will come earlier this year, so the market will stock up oils for festivals earlier. Mills are calling for higher prices, so the oil market is predicted to have little space for downside and to maintain its strengthening trend. Buyers can wait for low and stable prices to make proper replenishment. 

Soybean oil: GB Grade I soybean oil is mainly priced at 6,580-6,640 yuan/tonne in domestic coastal areas, down 30-60 yuan/tonne. (Tianjin traders 6,580, Rizhao traders 6,640, Zhangjiagang traders 6,640, and Guangzhou traders 6,590-6,610). 

Palm oil: RBD palm olein is mainly priced at 5380-5580 yuan/tonne in coastal areas, down 10-30yuan/tonne. (Tianjin traders 5,540, down 30; Rizhaotraders 5,580, down 10; Zhangjiagang traders 5,510, down 10; Guangzhou traders 5,380, down 10; and Xiamen yet offered).

Imported rapeseed oil: Imported rapeseed oil declines in price today, of which it settles down 80-100 yuan at 7,560-7,700 yuan/tonne in coastal areas. (Fujian 7,560, down 100; Guangdong yet offered; and Guangxi 7,950). The demand for rapeseed oil is influenced by its huge price gap with soybean oil and palm oil. And Chinese mills are importing soybeans as China and the US are making smooth progress in negotiations. But the market of rapeseed and its products is still supported by rocky relationship between China and Canada. Most mills now make no imports, so the supply is still tightening. It is predicted that rapeseed oil prices will have limited space for declines and may maintain the strengthening trend with some high-level fluctuations. Buyers can wait for low and stable prices to make some replenishment. 

Cottonseed oil: Cottonseed oil price stays stable with several declines of 300 yuan/tonne today. Cottonseed oil market is supported by no stock with a good delivery situation and high prices of cottonseed. However, oil futures on DCE today see stagflation and correction, and spot soybean oil and palm oil down by 20-60 yuan/tonne, which drags down the cottonseed oil market. Nevertheless, it is about to enter a peak season for stocking up before the festival, so cottonseed oil is expected to maintain an upward trend. Buyers can maintain safety inventory on the dips.