Today (Jan. 20), 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: Today, cottonseed is stopped to be purchased and quoted, while a minority of cottonseed oil mills continue the operation to run down inventories. Cottonseed supply is limited under the impact of very low operation rate, for which the cottonseed market is bolstered. However, most oil mills halt the operation with Spring Festival approaching, resulting in almost no transaction. Thus, the cottonseed market is weighed down. Moreover, both purchasing and selling are tepid with the forthcoming Spring Festival and thick festive air. 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 rose last Friday night following by a sharp rise in corn future. And on the Dalian Commodity Exchange today, palm oil futures decline on India’s boycott on imports of Malaysian palm oil as well as rising palm oil export tariffs set by Malaysia, but soybean oil fluctuates to edge higher after lower opens. As oil futures are in correction territory and most distributors are on their way home for the Lunar New Year, there are not many quotes available in the market. Spot soybean oil posts a partial rise of 50 yuan/tonne and palm oil declines by 10-50 yuan/tonne partially. China is expected to ramp up soybean imports under the trade deal with the United States, and mills have maintained soybean crush high at 2 million tonnes weekly due to good margins. Meanwhile, buyers have basically completed replenishment for the festival. Therefore, oil market is under pressure. But soybean oil stocks declined by 3% to 850,000 tonnes last week, which helps limit declines in its prices and support it to rebound today. The overall oil market is predicted to move sideways to adjust in the short term, and buyers are suggested to replenish in small batch on the dips if out of stock and remain cautious in chasing after high prices. 

Soybean oil: GB Grade I soybean oil is mainly priced at 6880-7120 yuan/tonne in domestic coastal areas. (Tianjin traders not offered, Rizhao traders 6980, Zhangjiagang traders not offered, and Guangzhou traders not offered). 

Palm oil: RBD palm olein is not offered in most markets. ( Zhangjiagang traders 6400, down 50; and Guangzhou traders 6430, down 10). 

Imported rapeseed oil: Imported rapeseed oil edges higher in price today, of which it settles up 10-20 yuan at 7950-8250 yuan/tonne in coastal areas. (Fujian yet offered; Guangdong yet offered; and Guangxi yet offered.) Rapeseed has been and will be in tight supply amid rocky relations between China and Canada. Along with low-level crush, rapeseed oil stocks declined by 8% to 270,000 tonnes last week. Besides, a five-day extradition hearing for Huawei’s Meng Wanzhou kicks off on Jan 20 in Canada. The market sentiment is cautious close to the Lunar New Year holidays. But China will certainly expand soybean imports under the trade deal with the United States, and soybean crush remained at a high level of 2 million tonnes last week under good gross margins on the DCE. Meanwhile, the market has completed the replenishment of edible oils for the festival, and many traders have been on their way to holidays. Rapeseed oil market has no bulk purchases as buyers remain cautious in chasing high prices. 

Cottonseed oil: Today, cottonseed oil prices partially stay stable and are stopped to quote for the most part. The purchasing price of cottonseed is high in earlier stage, and there are many enterprises that have halted the operation amid stronger festive air. Besides, the prices are mostly not offered, while individual of spot soybean oil up by 50 yuan/tonne. Thus, cottonseed oil market is supported by all these factors. But for another, it will be also dragged down due to the limited consumption downstream for cottonseed oil as blending oils. Both buying and selling are tepid in the market, so cottonseed oil market is likely to see a little fluctuation and mainly keep steady before Spring Festival.