Today (Jan. 17), 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. Port traders now do not have much supply in hand. And market participants are staying on the sidelines due to China's pledge to buy U.S. farm goods based on "market conditions" during the Phase 1 trade deal signing ceremony on Wednesday. Moreover, the market now is quiet as traders are getting off the market for the Spring Festival. Overall, the market for imported soybeans will probably be little changed ahead of the Spring Festival. 

Cottonseed: Cottonseed price partially stays stable today, and most factories discontinue the purchase to consume inventory. 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 oil mills halt the operation and have a holiday successively with Spring Festival approaching, resulting in tepid trading. Thus, the cottonseed market is weighed down. It is predicted that cottonseed price will mainly keep steady before holiday, so buyers can take a wait-and-see attitude.

Summary: US soybean futures closed lower last night, as the market remained skeptical about whether China would meet its commitment to boost purchases of U.S. soybeans in the face of bumper crop and favorable prices in South America. Oil futures continue to move lower on the Dalian Commodity Exchange today, but stay above the previous close. The market sentiment is somewhat improved after sources said that India’s Minister of Commerce denied any curbs on imports from Malaysia. In the spot markets, soybean oil partially extend a decline of 20-40 yuan/tonne and palm oil posts a partial rise of 10-20 yuan/tonne. The trading is small with only some low-level purchases as most buyers have already made replenishment for the Spring Festival. The impact from higher-than-expected palm oil production and lower exports in South America have been digested to some extent after a sharp decline, so oil market slows down its downside pace today. But the market has little upward impetus for a lack of bullish support and may move sideways in the short term. Buyers are suggested to make appropriate replenishment on the dips and remain cautious in chasing after high prices. 

Soybean oil: GB Grade I soybean oil is mainly priced at 6930-7120 yuan/tonne in domestic coastal areas, a partial decline of 20-40 yuan/tonne and a partial rise of 10yuan/tonne. (Tianjin traders 6930-6940, Rizhao traders 7000, Zhangjiagang traders 7120, and Guangzhou traders 7110). 

Palm oil: RBD palm olein is mainly priced at6440-6560 yuan/tonne in coastal areas, a partial rise of 10-20yuan/tonne. (Tianjin traders 6550-6560, up 10; Rizhao traders yet offered; Zhangjiagang traders 6450, flat; Guangzhou traders 6440, up 20; and Xiamen yet offered). 

Imported rapeseed oil: Imported rapeseed oil steadily edges higher in price today, of which it settles up 10-20 yuan at7960-8250yuan/tonne in coastal areas. (Fujian yet offered; Guangdong yet offered; and Guangxi yet offered.) Rapeseed oil market is bolstered by its own low stocks, as rapeseed crush is bothered by tight supplies amid a stalemate between China and Canada. But China is expected to ramp up soybean imports from the U.S. after the signing of the trade deal, and soybean crush now also stays at an extremely high level. In addition, buyers have basically completed replenishment for the festival. Therefore, rapeseed oil market would likely fluctuate o adjust at the high level, and buyers can wait at the moment.

Cottonseed oil: Cottonseed oil prices partially stay stable and partially are stopped to quote today. Cottonseed is pricey and cottonseed oil is out of stock in most factories, supporting cottonseed oil market. Moreover, 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 lower today. On the spot market, partial soybean oil down by 20-40 yuan/tonne. Thus, these factors drag down cottonseed oil market. There are many oil mills that have already halted the operation, so cottonseed oil market is likely to see a little fluctuation and mainly keep steady before Spring Festival.