Today (Dec. 11), the market for oilseeds and oils in China is shown as follows:

 

Imported soybean: Imported soybeans are stable 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 according to a report by Wall Street Journal, trade negotiators from China and the United States are going to postpone additional tariffs scheduled on December 15th, arousing upbeat sentiment about a trade deal between the two countries. If so, China will likely purchase more US soybeans, which will be negative to domestic market. Overall, the market for imported soybeans will probably keep steady in the short term. 

Cottonseed: Cottonseed prices stay stable with some rises of 0.02-0.04 yuan/kg. There is not much spot cottonseed available for sale on the market 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. However, factories have little shipping quantity of cottonseed oil and cottonseed meal. Due to the environmental warning, some enterprises halt the operation, and oil mills are wary of purchasing cottonseed. Therefore, the price rises of cottonseed are curbed by these factors. It is predicted that the overall cottonseed will continue trending up with fluctuations. As staple oils and meals are fluctuating, buyers can take a wait-and-see attitude.

Summary: US and Chinese trade negotiators are taking steps to delay the additional tariffs on Chinese imports set on December 15th, and President Donald Trump will meet US trade negotiators on Thursday to discuss matters over a trade deal. US soybean futures extended gains for a 6th day last night on rising hope for a trade deal and soybean purchases made by China earlier this week. The November report released by MPOB is bearish, in addition to a decline in exports for the first 10 days in December, so BMD palm oil posts losses. And oil futures also fall on the Dalian Commodity Exchange today as investors close positions. In the spot markets, soybean oil partially drops by 20-50 yuan/tonne and palm oil down 30-80 yuan/tonne. There is tepid trading for spot contracts and some purchases upon forward basis. Chinese importers will continue to scoop up soybeans due to good crush margins, and as there is a detente in trade relations between China and the US. In this case, domestic mills will again raise operation rates, and domestic oil prices will continue to fall. But oil mills are in a quick pace for shipment with festival demand underway. And soybean oil stocks have fallen below 1 million tonnes, and buyers are even queuing up for picking up goods in eastern regions and Tianjin. Mills are propping up prices due to a further decline forecast in soybean oil stocks. The overall market is predicted to have little downside space and to keep its strengthening trend. But short-term market is in the correction territory, so buyers can wait for low and stable prices to make proper replenishment.

Soybean oil: GB Grade I soybean oil is mainly priced at 6,550-6,680 yuan/tonne in domestic coastal areas, a partial decline of 20-50 yuan/tonne. (Tianjin traders 6,550-6,560, Rizhao traders 6,650, Zhangjiagang traders 6,680, and Guangzhou mills 6,610 and traders 6,580-6,590). 

Palm oil: RBD palm olein is mainly priced at 5,830-6,000 yuan/tonne in coastal areas, mostly down by 30-80 yuan/tonne. (Tianjin traders 5,970-5,980, down 30; Rizhao traders 5,990-6,000, down 30; Zhangjiagang traders 6,000, flat; Guangzhou traders 5,830-5,850, down 80; and Xiamen yet offered). 

Imported rapeseed oil: Imported rapeseed oil declines in price today, of which it settles down 30-50 yuan at 7,540-7,850 yuan/tonne in coastal areas. (Fujian 7,540; Guangdong yet offered; and Guangxi 7,800, down 50.) Chinese oil mills are buying up soybeans for 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 mills are in a lack of rapeseed for crush as there is no sign of a thaw in relations between China and Canada. And soybean oil and rapeseed oil stocks have stepped on the decline, and mills mostly are busy carrying out contracts. The overall rapeseed oil is forecast to keep its strengthening trend, possibly with some fluctuations and adjustments at at levels in the short term. Buyers can wait at the moment.

Cottonseed oil: Cottonseed oil price stays stable with some 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 transaction of some manufacturers is dull. Besides, November’s MPOB report went bearish and the export volume in the first ten days of December dropped. Moreover, palm oil on BMD falls back, and oils on DCE today also decline on the arbitrage of buying oils and selling meals. Spot soybean oil partially down by 20-50 yuan/tonne and spot palm oil down by 30-80 yuan/tonne. Thus, cottonseed oil prices are weak in rising due to these factors above. And short-term cottonseed oil prices may fluctuate at a narrow range, and buyers can stay on the sideline for the present.