Today (Dec. 19), 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 and Burmese soybean at 4,560 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, China will substantially increase soybean imports from the US after the trade deal is signed. In addition, Brazil is expected to harvest abundant soybeans while global supply remains adequate at present. Traders are staying on the sidelines in a hybrid of the bull and the bear, and the market for imported soybeans will probably keep steady in the short term. 

Cottonseed: Today, ottonseed prices mostly remain flat and partially rise by 0.01-0.05 yuan/kg. There is not much spot cottonseed available for sale on the market, and Xinjiang oil mills continue to replenish the stock. Also, ranchers are stocking up cottonseed ahead of the holiday. Besides, the freight from Xinjiang to inland remains high for a shortage of vehicles. Thus, these factors bolster the cottonseed market. However, some factories have little shipping quantity of cottonseed oil and cottonseed meal. Meanwhile, oil mills are a little bit wary of purchasing cottonseed, and the trading volume is limited. 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 maintain appropriate inventory on the dips but not chase up prices too high.

Oils: 

Summary: US soybean lost ground last night on expectations of abundant soybean harvest in Brazil. And on the Dalian Commodity Exchange today, soybean oil moves higher while palm oil drops fractionally. In the spot markets, soybean oil posts a partial rise of 10-20 yuan/tonne and palm oil fluctuates by 10-50 yuan/tonne partially, both in tepid trading. Chinese importers bought at least two cargoes of U.S. soybeans after receiving another round of tariff-free quota of 16 cargoes for U.S. shipments on Tuesday. In order to guarantee the supply of soybean meal, which has been with low stocks, mills will raise soybean crush to around 1.80 mln tonnes both in the coming two weeks. Meanwhile, soybean oil has been in poor trading and delivery recently. These all bring bearish impact on the oil market. But US soybeans have stepped on a strong trend since China and the United States agreed on a trade deal, so soybean import cost has followed to increase, sending crush margins for near-month cargoes to decline. And soybean oil stocks are still decreasing with festival demand underway, and funds will keep buying up on oils with concerns over a production reduction in palm oil caused by drought in Southeast Asia. The overall market is predicted to stay strong, but also to see some fluctuations with underlying bearish factors. Participants need to keep good control between selling and buying. 

Soybean oil: GB Grade I soybean oil is mainly priced at 6,800-6,950 yuan/tonne in domestic coastal areas, a partial rise of 10-20 yuan/tonne. (Tianjin traders 6,800-6,810, Rizhao traders 6,900, Zhangjiagang traders 6,950, and Guangzhou mills yet offered and traders 6,870-6,890). 

Palm oil: RBD palm olein is mainly priced at 6,070-6,220 yuan/tonne in coastal areas, fluctuating by 10-50 yuan/tonne. (Tianjin traders 6,210-6,220, up 10; Rizhao traders 6,160-6,170, down 20; Zhangjiagang traders 6,200, down 50; Guangzhou traders 6,070, up 30; and Xiamen yet offered). 

Imported rapeseed oil: Imported rapeseed oil goes up in price today, of which it settles up 70-100 yuan at 7,780-8,080 yuan/tonne in coastal areas. (Fujian 7,730, up 50; Guangdong yet offered; and Guangxi 8,080.) Mills have to keep low operation rates due to small rapeseed stocks amid pending issues between China and Canada. And rapeseed oil has already fallen into fully tight supply, so its prospect is still positive. But China will substantially increase agricultural products imports like soybeans from the US after the trade deal is signed, so mills are expected to pick up soybean crush to around 1.80 mln tonnes both in the coming two week. Rapeseed oil market may suffer frequent fluctuations in its upward trend, and buyers are suggested not to chase after excessively high prices. 

Cottonseed oil: Cottonseed oil price stays stable with some rises of 50-100 yuan/tonne today. The price of cottonseed remains high. Soybean oil on Dalian Commodity Exchange today rises slightly, and partial spot soybean oil up by 10-20 yuan/tonne. Hence, cottonseed oil market is bolstered. Due to the limited downstream demand for cottonseed oil as blending oil, there are not many actual transactions of some manufacturers, which will limit the upward space of cottonseed oil price. It is expected that short-term cottonseed oil may keep strong with fluctuations. Buyers can maintain appropriate inventory on the dips but not chase up prices too high.