Today (Dec. 23), 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 Canadian soybean 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. However, China will substantially increase soybean imports from the US after the trade deal is signed. Moreover, Brazil crop is expected to hit a record high production, Argentine production areas are in favorable weather conditions, and global supply is still huge. In a hybrid of the bull and the bear, the market for imported soybeans will probably keep steady in the short term. 

Cottonseed: Cottonseed prices mostly keep steady and partially rise by 0.01 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, due to the inconsiderable crush margin and the halt of operation on inspection of environmental protection, 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.

Oils: 

Summary: US soybeans rose last Friday as Chinese and US presidents held a phone talk to propel bilateral relations. But due to such a detente, and as soybean crush returned to a high level of 1.86 mln tonnes last week, oil futures move downwards after higher opens and then fluctuate to fall on profit taking. In the spot markets, soybean oil and palm oil slip 20-70 yuan/tonne, and the trading is tepid as buyers are staying on the sidelines. US soybean prices remain high so that domestic import cost is increasing. And with festival demand underway, small packing oil is in quick delivery pace and bulk oil is also in tight supply, so soybean oil stocks dropped by 5% to 900,000 tonnes last week. Meanwhile, the forecast for a production reduction in palm oil in Southeast Asia is also supporting the market. Therefore, despite the decline today, there is little downside space with so many bullish factors at the bottom. Short-term market is predicted to keep the strengthening trend and buyers can wait for low and stable prices to make appropriate replenishment. 

Soybean oil: GB Grade I soybean oil is mainly priced at6780-7050 yuan/tonne in domestic coastal areas, a decline of 20-70 yuan/tonne. (Tianjin traders 6780-6790, Rizhao traders 6900, Zhangjiagang traders6950, and Guangzhou mills 7050and traders 6870-6890). 

Palm oil: RBD palm olein is mainly priced at 6180-6320 yuan/tonne in coastal areas, down 20-50 yuan/tonne. (Tianjin traders 6310-6320, down 20; Rizhao traders 6260, down 30; Zhangjiagang traders 6250, down 50; Guangzhou traders 6180, down 20; and Xiamen yet offered). 

Imported rapeseed oil: Imported rapeseed oil goes down in price today, of which it settles down 10-40yuan at 7740-8080 yuan/tonne in coastal areas. (Fujian7740; Guangdong yet offered; and Guangxi8080.) Soybean imports from the US are expected to increase substantially once the trade deal is signed, and Chinese buyers now are still scooping up on South American soybeans, so soybean imports may go higher than estimates. In addition, the demand for rapeseed oil now is cut by its own high prices. Therefore, rapeseed oil market is weighing down. But as tensions between China and Canada still exist, mills now have few rapeseed stocks and rapeseed oil also dropped slightly to 347,000 tonnes last week. The overall market is predicted to stay strengthening, but it is necessary to avoid risks of short fluctuation. Buyers can wait at the moment. 

Cottonseed oil: Cottonseed oil price stays stable with partial fluctuations of 100-150 yuan/tonne today. The price of cottonseed remains high. And some oil mills stop operation due to the inspection for environmental protection. 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.  It is expected that short-term cottonseed oil may keep strong with fluctuations. Beyond that, oils on DCE today come off early highs and fall back with fluctuations. Spot soybean oil and palm oil drop by 20-70 yuan/tonne. All these are bearish for cottonseed oil market. Accordingly, short-term cottonseed oil may move sideways in a steady pace. Buyers can maintain a wait-and-see attitude.