Today (Jan. 10), 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 to sign thephase-1 trade deal next week, after which soybean imports from the US may get increased. Moreover, Brazil is forecast to harvest abundant soybean crop, as Agro consult boosted its estimates for 2019/20 by 300,000 tonnes to 124.3 mln tonnes. These will be negative to domestic market. But port traders now have low soybean supply in hand, which still supports the market. Overall, the market for imported soybeans will probably be little changed ahead of the Spring Festival. 

Cottonseed: Cottonseed prices stay stable today. Cottonseed supply is less under the impact of low operation rate, for which the cottonseed market is bolstered. However, the crush margin of cottonseed is poor, and some enterprises are wary of purchasing cottonseed with Spring Festival approaching. In consequence, the trading volume is limited. Additionally, the freight from Xinjiang to inland falls. 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 futures inched lower last night as investors squared positions ahead of a USDA report. And on the Dalian Commodity Exchange today, soybean oil fluctuates to edge lower, and palm oil stays below the previous close in spite of a rise. Spot soybean oil declines by 20-40 yuan/tonne and palm oil fluctuates by 10-40 yuan/tonne partially. Buyers are cautious in consideration of fluctuations on the DCE. Soybean imports are arriving at ports in huge quantity, and soybean crush still keeps high. Soybean oil and palm oil stocks are both rising. The upward pace in oil market is limited with the end of the replenishment for the festival. However, there is a sign of a detente in tensions between the United States and Iran. Moreover, a report by MPOB showed that palm oil production and stocks both went lower than expected in December. In addition, Malaysia plans to launch B20 biodiesel programme in February, and Indonesia is going to test B40 in April. Domestic mills now have 1.50 million tonnes of soybean oil in outstanding contracts, and some mills still have customers waiting for picking up goods. These will continue to boost the oil market. The oil market is predicted to have little space for adjustments and to keep its strengthening trend. Besides, China and the US are to sign the phase-1 trade deal next week, when there may be more details on US agricultural products purchases leaked. Participants can keep a close eye on it. 

Soybean oil: GB Grade I soybean oil is mainly priced at7160-7400 yuan/tonne in domestic coastal areas, down 20-40 yuan/tonne. (Tianjin traders7160-7170, Rizhao traders 7220, Zhangjiagang traders 7400, and Guangzhou traders 7370-7400). 

Palm oil: RBD palm olein is mainly priced at 6670-6760 yuan/tonne in coastal areas, partially fluctuating by10-40 yuan/tonne.(Tianjin traders 6750-6760, down 10; Rizhao traders6730-6740, down 20 from yesterday afternoon; Zhangjiagang traders 6670, flat; Guangzhou traders 6670, down 40; and Xiamen yet offered). 

Imported rapeseed oil: Imported rapeseed oil stays stable in price today, of which it settles at 7980-8300yuan/tonne in coastal areas. (Fujian 7980; Guangdong yet offered; and Guangxi yet offered.)China and Canada are in stalemate, so rapeseed supply is still tightening in China and the crush is at a low level. Besides, funds are active in taking arbitrage by buying up on oils. Therefore, rapeseed oil market is still strong. But China is expected to boost US soybean imports after the phase-1 trade deal is signed. Buyers have almost completed replenishment for the festival, so there may be little high-level purchases.

Cottonseed oil: Cottonseed oil price stays stable with individual rise of 200 yuan/tonne today. And factories offer inconsistently, so there is more room to negotiate prices. The price of cottonseed is still high, and some inland enterprises limit or discontinue production due to inspection of environmental protection. 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 declines of 20-40 yuan/tonne in spot soybean oil. 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.