1. There is structural division of global oilseeds market, where local and foreign markets behave differently.
- Global soybean output continues to increase and the competition between North and South American soybean intensified. SUR of US is tighter than South America. Global output of rapeseed also declined, leading to tight supply. China abolishes the rapeseed temporary reserves policy, cutting down the needs to import rapeseed.

2. Output of China soybean declined and almost none used for crushing. On the other hand, soybean import growth remains and the withdrawal of financing traders improve the crushing margin.

3. China abolishes the temporary rapeseed reserve policy and leads to increase availability of domestic rapeseeds for auction and supply in near future. This reduces the needs for import of rapeseed and rapeseed oil, and reduction of rapeseeds stock in the country.

4. Withdrawal of financing traders also leads to significant decline of oils & fats stock level, improving the margin for imported oils & fats.

5. Lower soybean oil price competed and took some market share from palm olein in food industry but demand for palm stearin remained stable. Overall palm oil demand is expected to return to its normal level.

6. Nevertheless, import of palm oil will still be influenced by import margin and hedging activity, as stock level returned to normal level and steep discount between market price and landed cost disappeared.

7. Soybean oil remains the leading oil in the growth of China oils & fats demand. Increase in rapeseed oil supply very much depends on the extensiveness of the implementation of country’s policy but the release of domestic rapeseeds stocks to the market in inevitable. Supply-demand condition of palm oil remains stable, while distinctive seasonal demand with price fluctuation conditions maintained. Periodical or regional demand and stock changes may influence price. There is increase intensity of import hedging with the change in profit margin. Oils & fats consumption more diversified.

8. Oils &fats; prices are currently at its low with upward movement expected due to the periodic tightness of stock level. El Niño effect remains the prime factor for significant price hike of oils & fats.