Today (Dec. 13), 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. But according to a report by the Dow Jones, the United States and China have reached a trade deal in principle. The US offered to suspend tariffs on Chinese goods expected to go into effect on Dec. 15 and to cut existing tariffs in half on $360 billion Chinese commodities. Reports indicated that Trump has signed off on an agreement reached by U.S. and Chinese negotiators. Encouraged by an improving prospect in bilateral trade relations, China may buy more US soybeans later, which is 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. 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. Buyers can make proper replenishment on the dips.

Summary: US President Donald Trump signed off on a phase-one trade deal with China, averting the Dec. 15 introduction of a new wave of US tariffs on Chinese imports, according to a report by Bloomberg, and would reduce existing tariffs on $360 billion Chinese commodities by 50% potentially. US soybean futures closed higher last night on renewed hope over a trade deal between the two countries. Malaysia will raise export tax rate on palm oil to 5% in January, which is bullish to soybean oil, so soybean and its products expand gains in electric trading today, and oil futures also post huge rises on the Dalian Commodity Exchange today on arbitrage in buying up oils. In the spot markets, soybean oil increases by 70-100 yuan/tonne and palm oil up 130-140 yuan/tonne, with little trading after huge hikes. 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 have again gobbled up oil futures, so oil market is buoyed to see another round of rises. But due to good crush margins and a detente in trade war, China has bought about 1.30 mln tonnes of US soybeans this week, and mills will pick up operation rates accordingly. Fundamentals now bode well for later market, but it is necessary to avoid risk of fluctuations in the upward process. 

Soybean oil: GB Grade I soybean oil is mainly priced at 6,700-6,800 yuan/tonne in domestic coastal areas, a rise of 70-100 yuan/tonne. (Tianjin traders 6,700-6,710, Rizhao traders 6,800, Zhangjiagang traders 6,800, and Guangzhou mills yet offered and traders 6,780-6,790). 

Palm oil: RBD palm olein is mainly priced at 6,050-6,200 yuan/tonne in coastal areas, up 130-140 yuan/tonne. (Tianjin traders 6,200, up 140; Rizhao traders yet offered; Zhangjiagang traders 6,130, up 130; Guangzhou traders 6,050, up 130; and Xiamen yet offered). 

Imported rapeseed oil: Imported rapeseed oil rises in price today, of which it settles up 50-70 yuan at 7,630-7,920 yuan/tonne in coastal areas. (Fujian 7,630; Guangdong yet offered; and Guangxi 7,920.) Mills now have low rapeseed stocks available due to tensions between China and Canada, so that rapeseed oil has been in very tight supply under low operations rates. The market is has a positive prospect now. But Chinese buyers keep on buying up on soybeans due to good crush margins on the DCE, and mills will raise soybean crush later. Besides, the demand in oil market is poor due to rising oil prices. Overall, rapeseed oil market may see frequent fluctuations in its upward process. Buyers are suggested to make appropriate replenishment on the dips and not to chase after excessively high prices. 

Cottonseed oil: Cottonseed oil price stays stable with some rises of 50-150 yuan/tonne today. The price of cottonseed is still high, and factories in some regions halt the operation. Besides, the January export taxes on Malaysia palm oil have been raised to 5%, which is bullish for soybean oil. According to Bloomberg, President Donald Trump approved the phase-one trade deal with China, averting the Dec. 15 introduction of a new wave of U.S. tariffs on consumer goods from China, and it was expected to reduce tariff rates by at most 50% on existing $360 billion of Chinese products. Accordingly, the tensions between U.S. and China have eased, which boosts U.S. soybeans on Globex today a further rise of 16 cents. Moreover, oils on DCE today rise significantly due to the arbitrage of buying oils and selling meals. Spot soybean oil up by 70-100 yuan/tonne and spot palm oil up by 130-140 yuan/tonne. Therefore, cottonseed oil market is boosted by all these factors above. But due to the limited downstream demand for cottonseed oil as blending oil, some manufacturers have a light trading. As a result, the price gains of cottonseed oil are not so much as staple oils, but the overall cottonseed oil may fluctuate to stay strong. Buyers can maintain appropriate inventory on the dips but not chase up prices too high.