The soyaoil price in China was falling because of plentiful supplies of low-priced domestic soybeans and heavy import arrivals, traders said. They also said there was increased crushing of rapeseed.

"Domestic beans are everywhere and a lot of canola (rapeseed) has been crushed. That is pressuring the market," a trader said.

There was talk China bought 25,000 tonnes of US soyaoil last week but this could not be confirmed and no price was given.

In general, the import market was quiet because 1998 soyaoil import quotas were mostly exhausted, traders said.

"There is still some quota left for this year but not much. Without the quotas there is not much business we can do," a trader said.

Beijing normally announces the new quotas for the year in January or February. The trader said the amount of new soyaoil quotas waslikely to be no less than this year's. "I would expect an amount below one million tonnes," he said.

The domestic soyaoil price was 7,500 yuan ($904) a tonne. Imports were priced at $630 a tonne C&F China, traders said.

Soybean imports were priced relatively high compared with domestic soybeans after taking account of taxes on imports, trader said. The import market for soybeans and soyameal was very quiet, they said.

US soybeans were priced at $242 a tonne C&F China. The price of domestic beans continued falling and was 2,100 yuan ($253) a tonne in Dalian, traders said.

Chinese buyers were discussing potential purchases of rapeseed from Canada or Australia at around $285-290 a tonne C&F China, one trader said.

"They are crushing for oil. Business is continuously being done," he said.

Another trader said bad weather in Australia had reduced rapeseed available for export. China's need for imports would be clearer in April and May when the condition of the domestic rapeseed crop was known, hesaid.

Independent newsletter Oil World said this week China imported 175,000 tonnes of soyaoil in October although official Chinese figures said the amount was 129,000 tonnes.