Today (Aug. 20th), 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 yesterday at 4150 yuan/tonne, and Canada soybean is unchanged from yesterday at 4880 yuan/tonne. China's market is propped up when imported and distributed soybean in Tianjin port is small and US soybean import in the short run is restricted amid U.S.-China trade conflicts. 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 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 cottonseed trading is not much as only a few mills are operating due to poor crush margin. Short-term cottonseed is likely to go strong. Buyers are suggested to make a small replenishment upon low price, and not chase high.

Summary: U.S. soybean closed with losses last night due to favorable rains in the production regions, and oil futures continue to fall on the Dalian Commodity Exchange today. In the spot market, soybean oil drops by 20-40 yuan/tonne and palm oil partially fluctuates by 10-20 yuan/tonne, and the trading remain tepid. Soybean oil has posted better import margins, and domestic oil futures prices are curbed by dismal export of palm oil under growing output in Malaysia. However, soybean crush declined by 5% last week to 1.58 mln tonnes due to swelling meal inventories and the typhoon, and mills have been 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 relationship between China and the United States are clouded by trade disputes. These all bode well for a bullish market, so the market will likely stay strong. Overall, short-term oil market will have little space for downside, and buyers can wait for low and stable prices to make replenishment in small batch. 

Soybean oil: GB Grade I soybean oil is mainly priced at 5,980-6,230 yuan/tonne in domestic coastal areas, down by 20-40 yuan/tonne. (Tianjin 5,980-5,990, Rizhao 5,980, Zhangjiagang 6,230, and Guangzhou 6,090). 

Palm oil: 24-degree palm oil is mainly priced at 4,720-4,880 yuan/tonne in coastal areas, fluctuating by 10-20 yuan/tonne. (Tianjin 4,850-4,860, flat; Rizhao 4,880, down 10; Zhangjiagang 4,750, down 10; Guangzhou 4,720, up 20; and Xiamen not offered).

Imported rapeseed oil: Imported rapeseed oil rises in price today, of which it goes up by 10-20 yuan to settle at 7,350-7,430 yuan/tonne in coastal areas. (Fujian 7,350, up 20; Guangdong not offered; and Guangxi 7,700, up 100). The import of rapeseed and rapeseed oil from Canada is still confronted with pending issues between Beijing and Ottawa, so rapeseed supply in China will get tightened. Besides, buyers are busy stocking up packing oil ahead of the festivals, and the weather speculation on U.S. soybean crops may occur at any time. In addition, it is less likely for China and the United States to settle their trade disputes in a short time. Therefore, rapeseed oil market is buoyed to go relatively strong. But the demand for rapeseed oil is subject to its big price gap with soybean oil and palm oil, and imported soybean will arriving at ports in huge quantities in the next two months. And the overall oil market may be restricted by the weaker export of palm oil in Malaysia for the upcoming peak production season. Overall, short-term rapeseed oil prices may fluctuate at the high level and stay strong, and buyers can take hand-to-mouth buying. 

Cottonseed meal: Today cottonseed meal stays stable due to the low operation rate and low cottonseed meal inventory. And today meals on DCE see a slight rise with fluctuation, and spot soybean meal is stable with a rise of 10-20 yuan/tonne. However, the demand is affected by the devastating outbreak of African swine fever. Moreover, soybean meal is dropping away from cottonseed meal. Short-term prices are likely to stay stable with some fluctuations and buyers are suggested to stay on the sideline for the present.