Today (Aug. 19th), the market for oilseeds and oils in China is shown as follows:

 

Imported soybean: Imported soybean price is steady today, among which Russian soybean is unchanged from last Friday at 4150 yuan/tonne, and Canada soybean is at 4800 yuan/tonne, unchanged from last Friday. China's market is propped up when imported and distributed soybean in Tianjin port is small and US soybean import is restricted amid uncertainty over U.S.-China trade relationship. However, the market is still under the negative situations that the demand is normal and the soybean supply globally is ample due to the bumper crop of South America. Short-term prices likely maintain stable.

Cottonseed: Cottonseed prices today stable with a rise of 0.04 yuan/kg and 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 most of oil mills halt the operation due to poor crush margin,  and the mills that are operating are reluctant to purchase.  Short-term price is likely to go strong on the strong trend of oils and meals. Buyers are suggested to make a small replenishment upon low price, and not chase high.

Summary: U.S. soybeans closed with gains last Friday as traders were buying at low levels, but oil futures moderately fall on the Dalian Commodity Exchange today. In the spot market, soybean oil goes down by 10-60 yuan/tonne, and palm oil prices are mixed to fluctuate by 10-40 yuan/tonne, the overall trading remains tepid. Due to swelling soybean meal inventories and the typhoon, soybean crush fell 4.8% to 1.58 mln tonnes last Friday. But mills are in quick delivery as buyers are stocking up for holidays, so soybean oil inventory also decreased by 3.3% weekly to 1.33 mln tonnes and palm oil also reduced by 5% weekly to 528,000 tonnes. Besides, the weather speculation on U.S. soybeans may occur at any time, and China and the United States are still in tensions. Therefore, the oil market is predicted to have little downside space and to remain relatively strong, although short-term prices may fall on the back of technical corrections on the DCE. Buyers can wait for low and stable price declines to make replenishment in small batch. 

Soybean oil: GB Grade I soybean oil is mainly priced at 5,980-6,280 yuan/tonne in domestic coastal areas, down by 10-60 yuan/tonne. (Tianjin 6,020-6,030, Rizhao 5,980, Zhangjiagang 6,280, and Guangzhou 6,150). 

Palm oil: 24-degree palm oil is mainly priced at 4,740-4,890 yuan/tonne in coastal areas, mostly up 10-40 yuan/tonne. (Tianjin 4,860-4,870, up 10; Rizhao 4,890, up 10; Zhangjiagang 4,800, up 40; Guangzhou 4,740, up 10; and Xiamen not offered).

Imported rapeseed oil: Imported rapeseed oil declines in price today, of which it goes down by 20-40 yuan to settle at 7,320-7,410 yuan/tonne in coastal areas. (Fujian 7,320, down 20; Guangdong not offered; and Guangxi 7,600, down 100). The demand for rapeseed oil is influenced by its big price gap with soybean meal, so its inventory increased by 1.3% to 489,000 tonnes in coastal areas last week. In addition, soybean arrivals at ports will be huge in later period, and palm oil supply will also increase as some cargoes have been postponed to September from August. These are all negative to rapeseed oil market. But rapeseed supply points to a tight prospect since there is no practical improvement in relationship between Beijing and Ottawa, and the market is busy in stocking up packing oil. Besides, the weather speculation on U.S. soybean crops may occur at any time. Therefore, rapeseed oil may have limited price declines to stay at a high level. Futures prices are in technical corrections now, so buyers can just stay on the sidelines for the moment. 

Cottonseed oil: Cottonseed oil today stays stable with some fluctuations of 50-100 yuan/tonne

when operation rate and output are both low; oil market is in a busy season of restocking for packing oil amid many orders waiting for delivery. However, the upward potential is curbed by the limited cottonseed oil consumption for blending oil, the mild retreat of oils on DCE and a drop of 10-60 yuan/tonne for spot soybean oil. Short-term cottonseed oil is likely to fluctuate with strong trend. Buyers are suggested to stay on the sideline or take a hand-to-mouth buying strategy.