Today (Dec. 5), 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. US President Donald Trump said that trade talks with China were going “very well”, but the market is not confident with the upbeat report due to capriciousness in bilateral talks previously. The uncertain relations between these two countries may further slap US soybean imports, 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 today. The cottonseed production is lower than the previous year, so there are not many spot goods available for sale and the supply is tight. Besides, the freight from Xinjiang to inland remains high for a shortage of vehicles. Thus, these factors support the cottonseed market. But the rises of cottonseed prices are also depressed as factories have little shipping quantity of cottonseed oil and cottonseed meal; oil mills purchase prudently due to the high price of cottonseed. Therefore, short-term cottonseed price continues trending up with fluctuations. As bulk oils and meals are fluctuating, buyers should be cautious in chasing up prices.

Oils: 

Summary: US President Donald Trump said that trade talks with China were going “very well”, and Bloomberg said in a report that the U.S. and China were moving closer to agreeing on the amount of tariffs that would be rolled back in a phase-one trade deal. Due to easing concerns over trade disputes, US soybean futures rose last night. Oil futures moderately move higher on the Dalian Commodity Exchange today, but palm oil actually stays below the previous close. In the spot markets, soybean oil posts a partial rise of 20-30 yuan/tonne and palm oil fluctuates by 10-20 yuan/tonne, both in tepid trading. 

The US side has sent positive news about trade talks with China, just days after passing through Hong Kong and Xinjiang bills that encountered firm protest and countermeasures by China, so there is still uncertainty in reaching a deal. Mills now are carrying out contracts signed previously, for which soybean oil stocks have been declining, and buyers are queuing up for picking up goods in some regions. In addition, due to tensions between China and Canada, rapeseed and rapeseed oil stocks are also reducing. And buyers now are also restocking for the holidays. Therefore, the overall market is predicted to remain its strengthening trend. But due to substantial crush margins, Chinese importers are scooping up on soybeans, and mills are raising their operation rates for soybean meal supplies. This will narrow upward space of oils in the short term, and there will be frequent fluctuations. It is suggested to keep balance between purchases and sales and not to chase after excessively huge rises, and buyers can wait for low and stable prices to make appropriate replenishment. 

Soybean oil: GB Grade I soybean oil is mainly priced at 6,480-6,580 yuan/tonne in domestic coastal areas, a partial rise of 20-30 yuan/tonne. (Tianjin traders 6,480-6,490, Rizhao traders 6,580, Zhangjiagang traders 6,580, and Guangzhou mills 6,570 and traders 6,490-6,500). 

Palm oil: RBD palm olein is mainly priced at 5,690-5,800 yuan/tonne in coastal areas, some fluctuating 10-20 yuan/tonne. (Tianjin traders 5,780-5,790, up 20; Rizhao traders 5,790-5,800, flat; Zhangjiagang traders 5,750, down 10; Guangzhou traders 5,690-5,700, down 20; and Xiamen yet offered). 

Imported rapeseed oil: Imported rapeseed oil declines in price today, of which it settles down 10-30 yuan at 7,640-7,850 yuan/tonne in coastal areas. (Fujian 7,640; Guangdong yet offered; and Guangxi 7,850.) Crush margins for South American soybeans are quite substantial on the DCE, so that Chinese importers are active making purchases, which is a curb on the rapeseed oil market. But due to tensions between China and Canada, mills are keeping low operation rates due to tight rapeseed supply. Soybean oil and rapeseed oil stocks have been falling 7 weeks in a row. Rapeseed oil market is predicted to remain strengthening, but there may be frequent fluctuations due to good soybean crush margins.

Cottonseed oil: Cottonseed oil price stays stable with some declines of 50 yuan/tonne today. The actual contract is dull, for manufacturers offer high but trade lower, which limits the cottonseed oil market. However, cottonseed prices remain high. And oils on DCE today go higher moderately, and spot soybean oil rises by 20-30 yuan/tonne. Therefore, the declines of cottonseed oil prices are limited by these factors. It is predicted that short-term cottonseed oil may be flat relatively. But bulk oils are fluctuating to adjust, so buyers can stay on the sideline or make small replenishment upon low prices.