Today (Sept. 9th), 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 4050 yuan/tonne, and Kazakhstan soybean is at 4470 yuan/tonne, unchanged from last Friday. The market is still under the negative situations that the demand at Tianjin Port is normal and the soybean supply globally is ample due to the bumper crop of South America soybean, which China is active in purchasing. However, China's market is propped up as the distributed soybeans are not many and disperse, about 30,000 tonnes in total. Besides, US soybean import is restricted before any substantive progress of US-China trade talks. The market is mixed and short-term prices likely turn stable.

Cottonseed: Cottonseed prices today stable with a rise of 0.06 yuan/kg and most purchase activities suspending, which is due to the tight supply before the massive marketing of new cottonseed. However, the cottonseed market is weighted on due to low operation rate, the almost ending of old seed purchase, and a low purchase willingness for new cottonseed, of which moisture and price are both high. The price is expected to fall back in the wake of new cottonseed marketing and and increasing supply, and buyers are suggested to take a wait-and-see attitude.

Summary: U.S. soybean closed lower last Friday night as weather forecasts were yet to show frost risks in the Midwest. On the Dalian Commodity Exchange today, soybean oil fluctuates to nudge lower, but palm oil rebound after losses as Malaysian palm oil has posted good export data in August and its stock in late August is estimated to decline to around 2.22 mln tonnes. And in the spot markets, soybean oil drops by 10-30 yuan/tonnes and palm oil rises by 30-80 yuan/tonnes, and the overall trading remains tepid. China and the United States have confirmed to hold talks in early October in Washington, domestic market is about to finish restocking ahead of holidays in mid-September, and U.S. soybeans will go marketing soon. These all put pressure on domestic oil market. However, due to swelling soybean meal inventory and soybean shortages among some southern mills, soybean crush fell by 4.6% to 1.81 mln tonnes last week, and soybean oil inventory thus slightly dropped by 0.34% weekly to 1.3318 mln tonnes. Moreover, soybean import cost has surged on rising premiums of Brazilian soybeans and the tight supply outlook in the fourth quarter in South America. And the import margins of South American soybean oil have also seen slight price inversion again, which makes it remain resilient. Overall, short-term oil market is predicted to follow futures to post frequent fluctuations, but to stay relatively weak later. Buyers are suggested to stay on the sidelines or keep light stockpiles. 

Soybean oil: GB Grade I soybean oil is mainly priced at 6,000-6,200 yuan/tonne in domestic coastal areas, down by 10-30 yuan/tonne. (Tianjin traders 6,000-6,010, Rizhao traders 6,030, Zhangjiagang traders 6,200, and Guangzhou traders 6,130). 

Palm oil: RBD palm olein is mainly priced at 4,810-4,920 yuan/tonne in coastal areas, up by 30-80 yuan/tonne. (Tianjin traders 4,830-4,840, up 40; Rizhao traders 4,920, up 80; Zhangjiagang traders 4,880, up 50; Guangzhou traders 4,810, up 30; and Xiamen not offered).

Imported rapeseed oil: Imported rapeseed oil declines in price today, of which it settles down 20-30 yuan at 7,390-7,470 yuan/tonne in coastal areas. (Fujian 7,390, down 20; Guangdong not offered; and Guangxi 7,500, down 20). The demand for rapeseed oil is subdued by its enlarged price gap with soybean oil and palm oil, so it inventory has increased fractionally to 448,000 tonnes in coastal regions last week. In addition, soybean crush is predicted to stay at the high level in coming two weeks. Meanwhile, rapeseed supply may be not as tight as forecast since Chinese importer have bought from Australia3 cargoes of new rapeseed, which is about to go marketing in October, and some domestic private firms are still buying rapeseed from Canada. But the import amount of Canadian rapeseed and oil will not be substantial due to pending issues between Beijing and Ottawa, which will also support domestic rapeseed oil market. Overall, short-term price trend may fluctuate narrowly at the high level, and buyers can wait for the moment. 

Cottonseed oil: Cottonseed oil today stays stable due to the low operation rate and almost non-inventory. However, the market is dragged down when the small-packing oil restocking is about to end; the consumption of cottonseed oil for blending is not a lot; and today soybean oil on DCE slightly drops, while spot soybean oil is down 10-30 yuan/tonne. Cottonseed oil is likely to see a proper drop with fluctuations after the massive marketing of new cottonseed. Buyers can just wait on the sidelines.