Today (Dec. 6), 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. Meanwhile, while US President Donald Trump is upbeat about the trade negotiations with China, China’s Ministry of Commerce said that the Chinese side believes that tariffs should be lowered accordingly if the two sides reach a phase one deal. The uncertain relation between these two countries is also 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 fluctuations of 0.01-0.02 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. 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; several oil plants force down the prices. Therefore, short-term cottonseed price continues trending up with fluctuations. There is a sign that staple oils and meals will move higher, so buyers can make proper replenishment on the dips.

Oils: 

Summary: China’s Ministry of Commerce said that tariffs should be lowered accordingly if the two sides reach a phase one deal, but US President Donald Trump insisted that trade talks are “moving right along”, and trade negotiators at the deputy level held a phone talks on Wednesday evening. As both sides are working hard to reach a deal, in addition to tight global supply in soybean meal, US soybean futures rose further last night. An agency estimated that Malaysia’s palm oil production declined 11-12% to 1.58-1.60 mln tonnes and carryover stocks declined by 6-9% to 2.15-2.22 mln tonnes in November. Oil futures thus fluctuate to rise on the Dalian Commodity Exchange today. In the spot markets, soybean oil steadily increases by 30 yuan/tonne and palm oil by 20-70 yuan/tonne, both in lukewarm trading. Operation rates in Shandong and east China go lower than expected, and mills are carrying out contracts signed previously on basis, so soybean oil stocks keep decreasing and buyers have been 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 restocking for the holidays. Therefore, mills are calling for higher prices. But due to substantial crush margins, Chinese importers are scooping up on soybeans, and mills will raise their operation rates to guarantee soybean meal supplies. This will narrow upward space of oils in the short term and add to fluctuations in the oil market. With more bullish factors at present, the oil market is predicted to keep its strengthening trend. 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 6,540-6,620 yuan/tonne in domestic coastal areas, a partial rise of 30 yuan/tonne. (Tianjin traders 6,540, Rizhao traders 6,600, Zhangjiagang traders 6,620, and Guangzhou mills 6,600 and traders 6,550-6,560). 

Palm oil: RBD palm olein is mainly priced at 5,770-5,860 yuan/tonne in coastal areas, up 20-70 yuan/tonne. (Tianjin traders 5,840, up 60; Rizhao traders 5,860, up 70; Zhangjiagang traders 5,800, up 20; Guangzhou traders 5,770-5,780, up 60; and Xiamen yet offered). 

Imported rapeseed oil: Imported rapeseed oil declines in price today, of which it settles down 10-20 yuan at 7,630-7,880 yuan/tonne in coastal areas. (Fujian 7,630; Guangdong yet offered; and Guangxi 7,880.) Crush margins for soybeans are quite substantial 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 now have low rapeseed stocks and are mostly carrying out rapeseed oil contracts. Soybean oil and rapeseed oil stocks have been falling 7 weeks in a row. Rapeseed oil market is predicted to remain strengthening but with some risks of frequent fluctuations in the short term. Buyers can keep light stockpiles at the moment. 

Cottonseed oil: Cottonseed oil stays stable today. The price of cottonseed remains high and oils on DCE today rise with fluctuations, bolstering cottonseed oil market. Spot soybean oil steadily up by 30 yuan/tonne and palm oil up by 20-70 yuan/tonne. However, the early price of cottonseed oil goes up too fast, but now it is weak in going up due to the dull actual transaction. Therefore, short-term cottonseed oil market is expected to be flat relatively. Leading by the positive side of staple oils, the cottonseed oil market outlook may fluctuate to stay strong. Buyers can stay on the sideline or make small replenishment upon low prices.