Today (Dec. 12), 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 4,300 yuan/tonne. Imported soybean supply to distribution markets remains scanty at ports and traders are in fair shipments, which is good to the market. However, despite that there was a lack of new progress in the phase 1 trade deal between China and the United States, Chinese importers bought about 21 cargoes or 1.26 mln tonnes of US soybeans this week. And if the two countries reach a deal, China will likely make more imports, 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 0.01-0.04 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. Meanwhile, 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.

Oils: 

Summary: CONAB, Brazil's national food supply and agricultural statistics agency, raised its soybean production estimates by 200,000 tonnes to 121.1 million tonnes, and there was a lack of new progress in the phase 1 trade deal between China and the United States. Investors booked profits and closed positions after 6 consecutive rises, so US soybean futures closed with losses last night. On the Dalian Commodity Exchange today, palm oil slows down its downside pace and soybean oil reverses declines to move higher. In the spot markets, soybean oil partially increases by 10-20 yuan/tonne and palm oil fluctuates by 10-50 yuan/tonne. There is still lukewarm trading for spot contracts and some purchases upon forward basis. 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 and southwestern regions, as well as Tianjin, so stocks will continue to decline. The market now has a positive outlook, and funds will also gobble up oil futures. But due to good crush margins for imported soybeans on the DCE, Chinese importers bought about 21 cargoes or 1.26 mln tonnes of US soybeans this week, and mills will again pick up operation rates for soybean crush. These will add to bearish atmosphere in the oil market. Overall, short-term oil market is predicted to follow futures to fluctuate to adjust and to keep its strengthening trend. Buyers are suggested to wait for low and stable prices to make proper replenishment.

Soybean oil: GB Grade I soybean oil is mainly priced at 6,570-6,700 yuan/tonne in domestic coastal areas, a partial rise of 10-20 yuan/tonne. (Tianjin traders 6,570-6,590, Rizhao traders 6,650, Zhangjiagang traders 6,680, and Guangzhou mills 6,700 and traders 6,620-6,630). 

Palm oil: RBD palm olein is mainly priced at 5,870-6,010 yuan/tonne in coastal areas, mostly fluctuating by 10-50 yuan/tonne. (Tianjin traders 5,990-6,010, up 20; Rizhao traders 5,980, down 10; Zhangjiagang traders 5,950, down 50; Guangzhou traders 5,870; and Xiamen yet offered). 

Imported rapeseed oil: Imported rapeseed oil steadily move slightly higher in price today, of which it settles up partially by 10 yuan at 7,560-7,850 yuan/tonne in coastal areas. (Fujian 7,560; Guangdong yet offered; and Guangxi 7,800.) Rapeseed supply is tightening due to tensions between China and Canada, so mills now can only lower down operation rates while carrying out contracts. Rapeseed oil stocks have thus fallen for a 8th week in a row, and the market now has a positive prospect. But due to good crush margins on the DCE, China has bought around 1.26 mln tonnes of US soybeans this week, and mills will again pick up soybean crush accordingly. Moreover, the demand for oils have somewhat slowed down after replenishing at full swing previously. Short-term rapeseed oil market is likely to follow futures to fluctuate frequently at the high level, and buyers can stay on the sidelines or buy on immediate demand. 

Cottonseed oil: Cottonseed oil stays stable today. The price of cottonseed remains high, and factories halt the operation in some regions. Besides, soybean oil on DCE today stops falling and starts rebounding, and partial spot soybean oil up by 10-20 yuan/tonne. Hence, cottonseed oil market is bolstered by these factors. Due to the limited downstream demand for cottonseed oil as blending oils, some manufacturers have not many actual transactions, resulting in the weakness in rise of cottonseed oil. And short-term cottonseed oil prices may keep steady with fluctuations at a narrow range, and buyers can stay on the sideline for the present.