Imported soybean: Imported soybean price is steady today, among which Russian soybean is unchanged at 4150 yuan/tonne from yesterday. China's market is propped up when imported and distributed soybean in Tianjin port is small and US soybean import is restricted amid the escalation of U.S.-China trade conflicts. However, the market is still under the negative situations that it's off-season period and the soybean supply globally is ample as Brazilian soybean output for Year 2019/20  was seen on average at 122.8 million tonnes, 6.8% more than in the previous season, according to the average forecast from a poll of analysts. The market is mixed and short-term prices likely maintain stable.

Cottonseed: Cottonseed prices today are partially stable with most purchase activities suspending, due to the declining supply of cottonseed, and a certain period before the marketing of new cottonseed. However,  the upward potential is curbed because the cottonseed trading is not much as oil mills are reluctant to purchase and some mills mainly use its own stock due to poor crush margin. Short-term price is likely to fluctuate greatly. Buyers are suggested to make a small replenishment upon low price.

Summary: U.S. soybean inched higher last night on weather speculations on soybean crop, and soybean oil futures post strong gains and palm oil also with rises on the Dalian Commodity Exchange today, due to the arbitrage of buying oils and selling meals, coupled with deteriorating US-China economic and trade disputes and the suspension of purchases of US agricultural products by Chinese firms. In spot markets, soybean oil surges 80-120 yuan/tonne and palm oil also increases by 20-30 yuan/tonne to attract some low-level purchases, but the total trading remains tepid. The import cost of soybeans and oils is increased because the exchange rate of yuan fell below 7. Meanwhile, while soybean oil is in quick delivery due to the stockpiling for the festivals, its output is decreasing as mills maintain low operation rate on account of swelling soybean meal inventory and upcoming typhoon. And palm oil inventory is also reducing. Oil market is predicted to surge under the push of fund inflow and protracted trade disputes, and short-term spot market is expected to follow futures to move higher. But there are bearish factors including huge arrivals of soybean and palm oil at ports in coming two months, so participants still need to remain cautious. 

Soybean oil: GB Grade I soybean oil is mainly priced at 5,690-5,900 yuan/tonne in domestic coastal areas, up by 80-120 yuan/tonne. (Tianjin 5,690-5,700, Rizhao 5,670, Zhangjiagang 5,900, and Guangzhou 5,830). 

Palm oil: 24-degree palm oil is mainly priced at 4,530-4,600 yuan/tonne in coastal areas, up by 20-30 yuan/tonne. (Tianjin 4,590-4,600, up 30; Rizhao not offered; Zhangjiagang 4,550, up 20; Guangzhou 4,530, up 20; and Xiamen not offered).

Imported rapeseed oil: Imported rapeseed oil rises in price today, of which it settles up 20-30 yuan at 7,070-7,150 yuan/tonne in coastal areas. (Fujian not offered; Guangdong 7,010, up 30; and Guangxi 7,120, stable). The import of rapeseed and rapeseed oil from Canada is still confronted with pending issues between Beijing and Ottawa, and rapeseed supply in China is getting tightened. Besides, the stockpiling for packing oil in the run up for the festivals has been in full swing. Therefore, rapeseed oil market is shored up to maintain strong. It demand is met with its big price gap with soybean oil and palm oil, bringing a dismal scene to its market. Moreover, some private firms are said to increase their rapeseed purchases, and soybean and palm oil are also in substantial arrivals in coming two months. These fundamentals may set curbs to price rises, and rapeseed oil has already seen its rises smaller than soybean oil. Buyers are suggested to make appropriate replenishment on the dips and not to chase up prices excessively. 

Cottonseed oil: Cottonseed oil today stays stable with a rise of 50 yuan/tonne when operation rates are low; the busy season of packing-oil restocking ahead of the holiday starts; related Chinese companies have halted purchases of U.S. farm produce amid a deterioration of US-China trade relationship; today oils on DCE surge with an arbitrage of buying oils and selling meals, spot soybean oil goes up 80-120 yuan/tonne. However, the market is weighted on by the limited consumption for cottonseed oil as blending oils. Short-term cottonseed oil is likely to fluctuate greatly and buyers had better maintain proper stock level upon low price and be prudent if chasing high.