Today (Jan. 7), 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 in a short term, 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 price stays stable with several rises of 0.02 yuan/tonne 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 discontinue the purchase under the impact of a round of rain and snow, inspection of environmental protection. In consequence, 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.

Summary: US soybean rose last night bolstered by a trade deal between China and the US very soon, but palm oil fell on the BMD last night on profit taking triggered by tensions in the Middle East and on suspending buying by Indian importers after top producers sharply raised prices. And on the Dalian Commodity Exchange today, oil futures posted sharp losses in early trading, but then fluctuate to go strengthening with only slight declines in midday closing and actually stay above the previous close. It can be said that there is strong support in the market. In the spot markets, soybean oil partially fluctuates by 10-40 yuan/tonne and palm oil fluctuates by 10-20 yuan/tonne, both in tepid trading with some low-level demand. Soybean imports are very huge in December and January, and due to good margins, soybean crush has stayed at a high level of 2 mln tonnes in recent weeks. But the replenishment for packing oils have almost been over, and the demand for bulk oils is also small, so soybean oil stocks increased by 1% to 925,000 tonnes and palm oil stocks also rose by 7.5% to 794,000 tonnes. Nevertheless, soybean oil stocks are at a low level, and some mills still have buyers waiting for picking up goods. Amid bullish sentiment, the overall oil market is still in a strong pattern.

Soybean oil: GB Grade I soybean oil is mainly priced at 7060-7300 yuan/tonne in domestic coastal areas, partially fluctuating by 10-40 yuan/tonne. (Tianjin traders 7080-7090, Rizhao traders 7140, Zhangjiagang traders 7280, and Guangzhou traders 7270). 

Palm oil: RBD palm olein is mainly priced at 6630-6700yuan/tonne in coastal areas, fluctuating by10-20 yuan/tonne. (Tianjin traders6690-6700, up 10; Rizhao traders yet offered; Zhangjiagang traders 6600, down 30; Guangzhou traders6630-6640, up 20; and Xiamen yet offered). 

Imported rapeseed oil: Imported rapeseed oil steadily edges lower in price today, of which it settles down 10-20 yuan at 7890-8200yuan/tonne in coastal areas. (Fujian 7890; Guangdong yet offered; and Guangxi 8200.) China and the United States are expected to sign the trade deal very soon. Soybean imports may exceed the expected, and soybean crush has been at a high level of 2 million tonnes weekly. In addition, both soybean oil and palm oil stocks have increased with the end of replenishment for packing oils before the festival. Therefore, rapeseed oil market is weighed down. But there is no sign of a thaw between China and Canada, so mills now have low rapeseed and rapeseed oil stocks. Overall, rapeseed oil market is predicted to keep its strengthening trend, but there will be frequent fluctuations in the wake of futures. Participants need to keep good balance of buying and selling.  

Cottonseed oil: Cottonseed oil price stays stable with individual rise of 50 yuan/tonne today. And factories offer inconsistently, so the price is more negotiable. The price of cottonseed is still high, and some inland enterprises limit or discontinue production due to inspection of environmental protection. Moreover, bulk oils still stay strong. 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. And short-term cottonseed oil market is predicted to fluctuate. Buyers can maintain appropriate inventory on the dips but not chase up prices too high.