Today (Sept. 4th), 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 4050 yuan/tonne, and Kazakhstan soybean is at 4570 yuan/tonne. China's market is propped up when imported and distributed soybean in Tianjin port is small; demand turns better. US soybean import in short run is restricted amid the uncertainty of US-China trade relationship even if the talks between Chinese and American trade negotiators scheduled for Washington in September are still on and the date hasn't been set. However, the bumper crop harvest in South America and huge global supply still curbs China's market. Short-term prices likely maintain stable.

Cottonseed: Cottonseed prices today are partially stable with most purchase activities suspending, due to tight supply of cottonseed, even though the marketing of some new cottonseed. However, the cottonseed trading is not much as the moisture of new cottonseed is high and operation rate are low on poor crush margin. The cottonseed price is likely to keep the strong trend before the massive marketing of new cottonseed. Buyers therefore had better not chase bids high.

Summary: U.S. soybeans inched lower last night, but on the Dalian Commodity Exchange today, soybean oil breaks declines to rebound and palm oil fluctuate at a narrow range on the arbitrage of buying oils and selling meals. In the spot markets, soybean oil increases by 30-80 yuan/tonnes and palm oil partially fluctuates by 10-20 yuan/tonne in tepid trading. Soybean oil finally posts bounces today after consecutive declines, which can be contributed to the following reasons. Basically, it is the push of the fund from arbitrage. Besides, the market is concerned about the tight supply outlook of South American soybeans in the fourth quarter, and soybean import cost has increased substantially due to rising premiums of Brazilian soybeans, falling exchange rate of Chinese yuan and growing ocean freight. And the import margins of South American soybean oil have also seen slight price inversion again. However, mills substantially raised their soybean crush by 11% to a high level of 1.90 mln tonnes last week, and the market is about to finish restocking edible oils in mid-September and has nearly completed packing oil buying for the festival, so soybean oil inventory thereby increased by 1.3% weekly to 1.336 mln tonnes last week. Such bearish signs from the fundamentals will keep the rebounds under check. Overall, short-term oil spot market is predicted to follow futures to swing frequently at the high level, and may see downside potential upon the completion of restocking or the emergence of sales pressure of U.S. soybeans. Participants can follow these market news. 

Soybean oil: GB Grade I soybean oil is mainly priced at 6,030-6,240 yuan/tonne in domestic coastal areas, up by 30-80 yuan/tonne. (Tianjin 6,030-6,040, Rizhao 6,080, Zhangjiagang 6,240, and Guangzhou 6,160). 

Palm oil: RBD palm olein is mainly priced at 4,830-4,890 yuan/tonne in coastal areas, partially fluctuating by 10-20 yuan/tonne. (Tianjin 4,880-4,890, up 10; Rizhao not offered; Zhangjiagang 4,880, down 20; Guangzhou 4,830, down 10; and Xiamen not offered).

Imported rapeseed oil: Imported rapeseed oil rises in price today, of which it settles up 30-50 yuan at 7,470-7,600 yuan/tonne in coastal areas. (Fujian 7,470, up 50; Guangdong not offered; and Guangxi 7,550, up 30). The import of Canadian rapeseed oil and rapeseed is still difficult without any improvement in relationship between China and Canada, so domestic supply is getting tightened amid bilateral issues. Besides, global rapeseed supply is also tight due to the output cut in Europe Union and Canada. Moreover, the stockpiles of rapeseed oil with the addition of its import from September to December is predicted to be 150,000 tonnes, which can support the consumption till the end of December at most. Rapeseed oil is predicted to stay relatively strong on tight supply outlook. However, while mills are active in raising their operation rates, the demand for rapeseed oil is subject to its enlarged price gap with soybean oil and palm oil and the market has slowed down its demand as it is about to complete small packing oil restocking. Therefore, the upward space is also subdued. The overall short-term market may fluctuate narrowly and stay relatively strong, and buyers can keep light stockpiles. 

Cottonseed oil: Cottonseed oil today stays stable with a rise of 100 yuan/tonne for some prices due to small marketing of new cottonseed, the low operation rate and low cottonseed oil inventory. And today oils on DCE stop decline and rebound on the arbitrage of buying oils and selling meals, and spot soybean oil goes up 30-80 yuan/tonne. However, the demand slow down with the ending of small-packing oil restocking. And the consumption of cottonseed oil for blending  is not a lot. Before the massive marketing of new cottonseed, cottonseed oil is likely to fluctuate. Buyers thereby had better stay on the sideline if having stocks at hand.