Today (Jan. 6), the market for oilseeds and oils in China is shown as follows:

 

Imported soybean: Imported soybeans steady today, among which Kazakhstan soybean is unchanged at 4,260 yuan/tonne and Canadian soybean at 4,180 yuan/tonne. China and the United States are expected to sign the trade deal on January 15th, for which China has committed to purchase more US agricultural products. Moreover, Brazil is forecast to harvest abundant soybean crop. These will be negative to domestic market. But port traders now have low soybean supply in hand and are in fair shipment, which still supports the market. Overall, the market for imported soybeans will probably keep range-bound in the short term. 

Cottonseed: Cottonseed prices partially keep stead and some fluctuate in a range of 0.01-0.05 yuan/kg today. Cottonseed supply is less under the impact of low operation rate, and some traders with goods in hand are reluctant to sell them. Thus, the market supply is tight, which bolsters the cottonseed market. However, the crush margin of cottonseed is poor, and some inland enterprises limit or discontinue production due to inspection of environmental protection. In consequence, mills are a little bit wary of purchasing cottonseed, and the trading volume is limited. Therefore, the cottonseed market is weighed down. It is predicted that the short-term cottonseed moves sideways, so buyers can take a wait-and-see attitude.

Oils: 

Summary: US soybean fell sharply last Friday on lower exports and on profit taking after escalating tensions in the Middle East. But palm oil prices have been moving higher in recent two weeks in top producing countries due to the expectation for a reduction in production and as India returns to make purchases, so margins of importing palm oil have gone inverse at home and abroad. Besides, oils futures also perform well due to funds buying on the Dalian Commodity Exchange. Oil futures on the DCE rally from low levels in after-hour trading last Friday, to fluctuate to rebound today. In the spot markets, soybean oil and palm oil increase by 40-50 yuan/tonne, but the trading is low amid cautious atmosphere. Soybean crush last week further rose to over 2 mln tonnes and may also keep flat this week, and soybean oil stocks also increased slightly by 1% to 925,000 tonnes. But mills have been conducting contracts, with some buyers still queuing up for picking up oils. Amid bullish sentiment, the oil market is expected to keep its strengthening trend, but the trading remains tepid with the end of replenishment for packing oils. 

Soybean oil: GB Grade I soybean oil is mainly priced at 7060-7300 yuan/tonne in domestic coastal areas, a partial rise of 40-50 yuan/tonne. (Tianjin traders 7060-7070, Rizhao traders 7170, Zhangjiagang traders 7300, and Guangzhou traders 7240). 

Palm oil: RBD palm olein is mainly priced at 6610-6710yuan/tonne in coastal areas, mostly up by 40-50 yuan/tonne. (Tianjin traders6700-6710, up 40; Rizhao traders yet offered; Zhangjiagang traders 6650, up 50; Guangzhou traders6610-6630, up 50; and Xiamen yet offered). 

Imported rapeseed oil: Imported rapeseed oil steadily fluctuates in price today, of which it fluctuates by 10-20 yuan to settle at 7920-8220yuan/tonne in coastal areas. (Fujian 7920, up 20; Guangdong yet offered; and Guangxi 8200, down 20.) There is not a date set for a thaw between China and Canada, so rapeseed is in tight supply and low crush at present. Rapeseed oil stocks thus fell by 6.6% to 319,000 tonnes last week. Besides, funds are keep buying up on oils. Therefore, rapeseed oil market is still in a strong pattern. But soybean imports remain huge, and soybean crush totaled 2.0 mln tonnes last week and may also keep flat this week. In addition, buyers are cautious as they have almost finished the replenishment for packing oils. Overall, rapeseed oil market is predicted to see little demand in the short term. 

Cottonseed oil: Cottonseed oil price stays stable with partial fluctuations of 20-100 yuan/tonne today. And factories offer inconsistently, so the price is negotiable. The price of cottonseed is still high, and some inland enterprises limit or discontinue production due to inspection of environmental protection. Besides, the night trading lifted from lows and fluctuated to rebound last Friday, leading a rise of 40-50 yuan/tonne in spot market of soybean oil and palm oil. Accordingly, cottonseed oil market is bolstered by these factors. But on the other hand, the market is also dragged down by limited downstream demand for cottonseed oil as blending oil and almost finished packing-oil stockpiling before the holiday. Thus, short-term cottonseed oil market is predicted to fluctuate. Buyers can maintain appropriate inventory on the dips but not chase up prices too high.