Today (Dec. 10), 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. Imported soybean supply to distribution markets remains scanty at ports and traders are in fair shipments, which is good to the market. But China issued another batch of quotas for US soybeans amounting to 1.3-1.5 million tonnes under tariff exemptions, and importers rapidly booked 6-8 cargoes of US PNW soybeans for January and January-February shipment and at least 2 cargoes from the US Gulf. And Donald Trump on Monday said that China and the US are going well making progress in striking a trade deal. China will likely buy more US soybeans, which is negative to the market. Overall, the market for imported soybeans will probably keep firm in the short term. 

Cottonseed: Cottonseed prices stay stable with some rises of 0.01-0.02 yuan/kg. 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. Buyers can make proper replenishment on the dips and remain cautious in chasing up prices.

Oils: 

Summary: Sources said Chinese private enterprises were granted a quota of at least 1 million tonnes for US soybeans under tariff exemptions, and due to good crush margins, China on Monday rapidly purchased 6-8 cargoes of US PNW soybeans for Jan and Jan-Feb shipment and at least 2 cargoes from the US Gulf, with a total of 500-600,000 tonnes. US soybean futures were buoyed to extend gains last night. But due to improving trade relations between the two countries and profit taking, oil futures fall back on the Dalian Commodity Exchange today, with palm oil significantly slowing down its upward pace. In the spot markets, soybean oil and palm oil post a partial decline of 20-40 yuan/tonne in tepid trading. China importers are scooping up soybeans under good crush margins, so soybean crush will follow to increase. BMD palm oil will come under pressure as a report by ITS showed that Malaysia’s palm oil exports posted a month-on-month decline of 12%. Therefore, domestic oils futures are dragged down to fluctuate to adjust at the moment. But with festival demand underway and fair shipment among mills, soybean oil stocks fell by 6% from previous week to 996,000 tonnes, and buyer are still queuing up for picking up goods in Tianjin and some eastern regions. And funds are still gobbling up production reduction in palm oil in South Asia. The overall oil market is forecast to keep its strengthening trend. On account of short-term declines and adjustments in the market, buyers can wait for low and stable prices to make appropriate replenishment. 

Soybean oil: GB Grade I soybean oil is mainly priced at 6,600-6,680 yuan/tonne in domestic coastal areas, a partial decline of 20-40 yuan/tonne. (Tianjin traders 6,600-6,610, Rizhao traders 6,670, Zhangjiagang traders 6,680, and Guangzhou mills yet offered and traders 6,620-6,630). 

Palm oil: RBD palm olein is mainly priced at 5,920-6,020 yuan/tonne in coastal areas, partially down by 20-40 yuan/tonne. (Tianjin traders 6,000-6,010, flat; Rizhao traders 6,020, down 40; Zhangjiagang traders 6,000, down 20; Guangzhou traders 5,920-5,930, up 10; and Xiamen yet offered). 

Imported rapeseed oil: Imported rapeseed oil declines in price today, of which it settles down 50-70 yuan at 7,600-7,900yuan/tonne in coastal areas. (Fujian 7,600, down 70; Guangdong yet offered; and Guangxi 7,850, down 70.) Chinese oil mills are buying up South American soybeans for its handsome crush margins, so that they will raise soybean crush in the coming two weeks. This is a curb on the rapeseed oil market. But some mills have no cargo to come amid tensions between China and Canada. As most mills are also just carrying out contracts, soybean oil and rapeseed oil stocks have been falling for eight consecutive weeks. The overall rapeseed oil market is predicted to keep strengthening, but there may be risks of frequent fluctuations in the short term. Buyers can stay on the sidelines at the moment. 

Cottonseed oil: Cottonseed oil price is stable with several rises of 50 yuan/tonne today. The cottonseed oil market is bolstered by pricey cottonseed and the halt of operation for environmental protection in some regions. But the actual contract of cottonseed oil in some manufacturers is dull. On the other hand, it was rumored that Chinese private firms had been offered at least 1 million tonnes of U.S. Soybeans in new tariff waivers. Due to the good crush margins, China on Monday bought 6-8 cargoes of US West soybeans for shipment in January and February and at least 2 cargoes of US Gulf soybeans which totaled more than 500,000 tonnes. Moreover, soybean oil on Dalian Commodity Exchange today sees stagflation and correction, after a detente in trade war and the profit taking. And spot soybean oil and palm oil partially down by 20-40 yuan/tonne. Thus, cottonseed oil market will also be curbed. Short-term cottonseed oil prices may fluctuate at a narrow range, and buyers can take a wait-and-see attitude.