Today (Dec. 3), the market for oilseeds and oils in China is shown as follows:

 

Imported soybean: Imported soybeans steady today, among which Kazakhstan soybean is unchanged at 4,180 yuan/tonne, and Ukraine soybean at 3,500 yuan/tonne. Imported soybean supply to distribution markets remains scanty at ports, and traders are in fair shipments. As a countermeasure against the United States signing Hong Kong Human Rights and Democracy Act into law, China suspended the review of requests by U.S. military ships and aircraft to visit Hong Kong and also announced sanctions against several U.S. non-government organizations. US soybean imports later may get impeded by renewed concerns over bilateral trade disputes, which will be bullish to domestic distribution markets. Overall, the market for imported soybeans will probably keep firm in the short term. 

Cottonseed: Cottonseed prices stay stable with some strong fluctuations of 0.02-0.1 yuan/kg. The cottonseed production is lower than the previous year, so there are not many spot goods available for sale and the supply is tight. But ranches continue to purchase cottonseed. Thus, cottonseed market is boosted. However, oil mills purchase cottonseed prudently due to little shipping quantity of cottonseed oil and cottonseed meal. In consequence, the rises of cottonseed prices are limited. It is expected that short-term cottonseed may go up with fluctuations. As oils and meals are fluctuating, buyers should be cautious in chasing up prices.

Summary: As a countermeasure against the Hong Kong-related bill signed by the United States, China suspended the review of requests by U.S. military ships and aircraft to visit Hong Kong and also announced sanctions against several U.S. non-government organizations, which fueled concerns over trade disputes. In the meantime, the USDA reported fewer soybean export inspection statistics, so US soybean futures fell for a 8th session in row last night to hit the lowest since September 11th. Oil futures also move lower further on the Dalian Commodity Exchange today. Spot soybean oil and palm oil drop by 10-80 yuan/tonne in tepid trading. Gross crush margins for South American soybeans stay as high as 226-265 yuan/tonne on the DCE, so Chinese importers keep booking purchases. As result, soybean crush rose a further 0.3% to 1.78 mln tonnes last week, and soybean arrivals at domestic ports are expected at 9.35 mln tonnes in December. Therefore, the oil market have been under pressure. But soybean oil stocks still dropped by 2.3% to 1.06 mln tonnes as mills had signed many forward contracts previously. And rapeseed oil stocks are also decreasing, so mills are propping up prices. Funds speculate on increasing long positions on the dips, which bodes well for a strong pattern in oil market. The round of declines is predicted to be a usual step for declines and corrections. Buyers can continue to wait for fresh cues.

Soybean oil: GB Grade I soybean oil is mainly priced at 6,380-6,480 yuan/tonne in domestic coastal areas, a decline of 20-80 yuan/tonne. (Tianjin traders 6,400-6,410, Rizhao traders 6,490, Zhangjiagang traders yet offered, and Guangzhou mills yet offered and traders 6,380-6,400). 

Palm oil: RBD palm olein is mainly priced at 5,590-5,680 yuan/tonne in coastal areas, mostly down 10-50 yuan/tonne. (Tianjin traders5,670-5,680, down 20; Rizhao traders 5,660, down 50;Zhangjiagang traders 5,640, down 10;Guangzhou traders 5,590, down 20; and Xiamen yet offered). 

Imported rapeseed oil: Imported rapeseed oil drops in price today, of which it settles down 30-50 yuan at 7,620-7,880 yuan/tonne in coastal areas. (Fujian 7,620; Guangdong yet offered; and Guangxi 7,880.) Chinese importers are active scooping up South American soybeans due to crush margins on the DCE, so soybean arrivals are expected at 9.5 mln tonnes in December, and soybean crush also increased 0.3% to 1.78 mln tonnes last week. This is a curb on rapeseed oil market. But due to tensions between China and Canada, rapeseed supply is tightening in China and there is no import among some mills. Mills now are mostly carrying out contracts, so soybean oil and rapeseed oil stocks have been falling for 7 weeks in row. Rapeseed oil market will probably keep its strong pattern, but there may be risks of frequent risks in the short term. Buyers can stay on the sidelines at the moment. 

Cottonseed oil: Cottonseed oil price stays stable with some declines of 50 yuan/tonne today. The offer is high but transaction price is lower, so factories have not many actual contracts. Besides, oils on Dalian Commodity Exchange today also go down, and spot soybean oil and palm oil drop by 10-80 yuan/tonne, which weighs down cottonseed oil market. However, the cottonseed is pricey, so oil mills intend to prop up price even more. And short-term cottonseed oil is expected to be resilient or relatively flat. But bulk oils are fluctuating to adjust, so buyers can wait and see.