Today (Dec. 9), 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 is not offered for out of stock. Imported soybean supply to distribution markets remains scanty at ports, and traders are in fair shipments. China will waive import tariffs for some shipments from the United States in light of applications submitted by related enterprises, according to a report by official Xinhua last Friday. And White House economic adviser Larry Kudlow said that Donald Trump likes where trade talks with China are going and will make final decision on tariffs. As bilateral relations will hopefully get improved, China may import more US soybeans, which is negative to domestic market. Overall, the market for imported soybeans will probably keep firm in the short term. 

Cottonseed: Cottonseed price stays stable with some rises of 0.02-0.03 yuan/tonne and individual declines of 0.02 yuan/tonne today. Ranches continue to purchase cottonseed, and there is not much spot cottonseed 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 boost 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 would like to force prices down due to the pricey cottonseed. Therefore, short-term cottonseed price continues trending up with fluctuations. Staple oils are trading higher, which bulls the cottonseed market. Buyers can make proper replenishment on the dips.

Summary: US soybean futures continued to rise on rising hopes for a trade deal between China and the United States. BMD palm oil broadly rose last Friday on tight global supply, so oil futures all follow to surge on the Dalian Commodity Exchange today. In the spot markets, soybean oil increase by 90-100 yuan/tonne and palm oil by 70-190 yuan/tonne, under which the trading is predicted to be little, in spite of some replenishment for those with smaller rises. The crush declined 7% weekly to 1.65 mln tonnes last week for a lack of soybeans among some mills, in addition to some forward contracts signed previously, so soybean oil stocks followed to decline by 6% to 996,000 tonnes, and buyers have been queuing up for picking up goods in some regions like Tianjin and east China. Besides, imported rapeseed and rapeseed oil stocks also keep decreasing, and the market is at full swing for festival restocking. All these factors push oil market to see another huge rise. The overall oil market is forecast to keep its strengthening trend. But Chinese importers are scooping up on soybeans due to crush margins, and soybean crush may be raised to 1.70-1.80 mln tonnes both in the coming two weeks for tight soybean meal supplies. In addition, buyers turn cautious after oils prices move to such a high level. Therefore, it is suggested to avoid risks of fluctuations after rushing higher at the moment. 

Soybean oil: GB Grade I soybean oil is mainly priced at 6,620-6,720 yuan/tonne in domestic coastal areas, a rise of 90-100 yuan/tonne. (Tianjin traders 6,620-6,630, Rizhao traders 6,720, Zhangjiagang traders 6,720, and Guangzhou mills 6,720 and traders 6,660-6,680). 

Palm oil: RBD palm olein is mainly priced at 5,980-6,060 yuan/tonne in coastal areas, up 100-200 yuan/tonne. (Tianjin traders 6,000-6,010, up 100; Rizhao traders 6,060, up 200; Zhangjiagang traders 6,020, up 190; Guangzhou traders partially 5,980; and Xiamen 6,070, up 120). 

Imported rapeseed oil: Imported rapeseed oil rises in price today, of which it settles up 20-30 yuan at 7,670-7,920 yuan/tonne in coastal areas. (Fujian 7,670; Guangdong yet offered; and Guangxi 7,920.) Subject to tensions between China and Canada, most domestic mills have no rapeseed cargoes onwards, so rapeseed is seen to stay in tight supplies. Rapeseed oil stocks dropped for a 8th week in a row by 3% to 340,000 tonnes last week, so mills are propping up prices. But Chinese importers are scooping up on soybeans due to crush margins, and the demand for rapeseed oil is weak due to high prices so that its upward space is limited. The overall rapeseed oil market is predicted to be strengthening and possibly see some risks of fluctuations in the wake of futures. 

Cottonseed oil: Cottonseed oil prices stay stable with fluctuations of 50-200 yuan/tonne. The price of cottonseed is high, and some regions halt the operation for environmental protection. Besides, the tight supply of palm oil worldwide raised people’s concerns, which led a wide rise on Bursa Malaysia Derivatives last Friday. As a result, oils on Dalian Commodity Exchange today also follow its futures to surge, and spot soybean oil up by 90-100 yuan/tonne and spot palm oil up by 70-190 yuan/tonne. Thus, cottonseed oil market is bolstered by these factors above. But the market is also curbed due to dull actual transactions of some manufacturers. Staple oils still keep firm and overall market outlook of cottonseed oil may be fluctuate to stay strong. Buyers can make proper replenishment on the dips and remain cautious in chasing up prices.