Today (Jan. 15), 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 will boost soybean imports from the United States under the phase-1 trade deal, which will be signed between the two countries very soon. In addition, Brazil is forecast to harvest bumper soybean crops, which is also negative to domestic distributed market. But traders now have little supply in hand at ports, which still supports the distributed markets for imported soybeans. Overall, the market for imported soybeans will probably be little changed ahead of the Spring Festival. 

Cottonseed: Cottonseed price stays stable with several declines of 0.03 yuan/tonne today. The crush margin of cottonseed is poor, and inland enterprises halt the operation and have a holiday successively with Spring Festival approaching. In consequence, the trading volume is limited, and the cottonseed market is weighed down. But cottonseed supply is less under the impact of low operation rate in ginning mills, which limits the price declines. It is predicted that the short-term cottonseed moves sideways, so buyers can take a wait-and-see attitude.

Summary: US soybean futures rose last night, bolstered by the trade deal that would be signed by China and the US very soon. The content of the trade deal will be released on January 15th, except those annexes which specify China’s purchases of US products and services, according to a report by Reuters. If so, the signing of the trade deal is expected to have less impact on the market. Oil futures extend losses in morning trading on the Dalian Commodity Exchange today. In the spot markets, soybean oil partially declines by 20-30 yuan/tonne and palm oil partially fluctuates by 10-30 yuan/tonne. The trading is tepid, as oil futures expand losses in afternoon trading on the DCE. Soybean crush stays stubbornly high in China at present. India has announced to suspend purchases of palm oil from Malaysia, although the decline in palm oil production in Malaysia was lower than forecast for January 1-10. Moreover, the exchange rate of CNY is also rising. Therefore, oils futures have gone into the corrections under pressure. But soybean oil stocks remain low with quick consumption ahead of the festival, and its supply is quite tight in some regions. In addition, the market still expects a reduction in palm oil production in top producing countries. Hence, funds are speculating on going long on the dips. Currently, the oil market is predicted to post some huge adjustments in upward trend, but it is still in the strong pattern. Buyers can wait for low and stable prices to make replenishment in small batch.

Soybean oil: GB Grade I soybean oil is mainly priced at 7100-7290 yuan/tonne in domestic coastal areas, a partial decline of 20-30 yuan/tonne and a partial rise of 20 yuan/tonne. (Tianjin traders 7070-7080, Rizhao traders 7180, Zhangjiagang traders 7300, and Guangzhou traders 7260). 

Palm oil: RBD palm olein is mainly priced at 6570-6690 yuan/tonne in coastal areas, partially fluctuating by 10-30 yuan/tonne. (Tianjin traders 6650-6660, up 10; Rizhao traders 6690, up 30; Zhangjiagang traders 6600, flat; Guangzhou traders 6570, up 30; and Xiamen yet offered). 

Imported rapeseed oil: Imported rapeseed oil rises in price today, of which it settles up 30-50 yuan at 8030-8340 yuan/tonne in coastal areas. (Fujian yet offered; Guangdong yet offered; and Guangxi yet offered.)There is not a date set for a detente between China and Canada, so rapeseed will continue to be in tight supply. Rapeseed crush thus remains low and rapeseed oil market is strong. But China is expected to boost soybean imports from the US under the trade deal that will be signed between the two countries, and soybean crush also stays at an extremely high level. In addition, the demand ahead of the festival is also drawing to a close. As oil futures expand losses in afternoon trading, rapeseed oil market is likely to fluctuate to adjust at the high level. Buyers can wait at the moment. 

Cottonseed oil: Cottonseed oil price is stable with several rises of 50 yuan/tonne today. Cottonseed is pricey and cottonseed oil is out of stock in most factories, supporting cottonseed oil market. Moreover, inland oil mills successively halt the operation and have a holiday, so operation rate is in a downward tendency. But the downstream demand for cottonseed oil as blending oil is limited. Additionally, oils on DCE continued to fall back this morning. On the spot market, partial soybean oil down by 20-30 yuan/tonne and palm oil partly fluctuates by 10-30 yuan/tonne. Thus, these factors drag down cottonseed oil market. Thus, short-term cottonseed oil market is predicted to fluctuate in a steady pace. But bulk oils are still fluctuating to decline, so buyers can wait and see.