Today (Sept. 10th), 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 unchanged from yesterday at 4470 yuan/tonne. The market is negative when the demand in Tianjing port is normal; the global soybean supply is huge with a bumper harvest in South America; FCStone estimates show the Brazil 2019/20 soybean production is 121.41 million tonnes, up 5.5% from a year earlier. 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 maintain stable.

Cottonseed: Cottonseed prices today stable with a drop of 0.02 yuan/kg and most purchase activities suspending. 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. However, the price adjustment is limited by the tight supply before the massive marketing of new cottonseed. The price is expected to fall back in the wake of new cottonseed marketing and, and buyers are suggested to take a wait-and-see attitude.

Summary: U.S. soybeans remained flat last night in the hybrid of good weather conditions in U.S. production regions and technical buying, and oil futures moderately decline in early trading and then fluctuate move higher on the Dalian Commodity Exchange today. In the spot markets, soybean oil and palm oil increase by 20-50 yuan/tonne in tepid trading, attracting purchases at low prices. Due to swelling meal inventory in some southern mills, soybean crush fell by 4.6% weekly to 1.81 mln tonnes last week, so that oil inventory also followed to drop slightly by 0.3% to 1.332 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. However, China and the United States confirmed to hold another round of negotiations in Washington in earlier October, and China is said to buy certain amount of soybean from the United States before the negotiations. Meanwhile, the arrival of palm oil at ports will also be huge in September and October. And the restocking for oils ahead of the holidays is about to complete in mid-September, and such weaker demand will then exert pressure on the oil market. Overall, short-term oil market will have little impetus to rebound and will mainly fluctuate and stay relatively weak. Buyers can keep light stockpiles. 

Soybean oil: GB Grade I soybean oil is mainly priced at 6,000-6,200 yuan/tonne in domestic coastal areas, up by 20-50 yuan/tonne. (Tianjin traders 6,000-6,010, Rizhao traders 6,040, Zhangjiagang traders 6,230, and Guangzhou traders 6,160). 

Palm oil: RBD palm olein is mainly priced at 4,860-4,960 yuan/tonne in coastal areas, up by 40-50 yuan/tonne. (Tianjin traders 4,880-4,890, up 50; Rizhao traders 4,960, up 40; Zhangjiagang traders 4,930, up 50; Guangzhou traders 4,860, up 40; and Xiamen not offered).

Imported rapeseed oil: Imported rapeseed oil rises in price today, of which it settles up 30-40 yuan at 7,430-7,500 yuan/tonne in coastal areas. (Fujian 7,430, up 40; Guangdong not offered; and Guangxi 7,500, stable). The import of Canadian rapeseed oil and rapeseed is still impeded as there is no improvement in relationship between China and Canada, and rapeseed oil prices will stay at the high level before a thaw in bilateral relations. However, China and the United States confirmed to hold another round of negotiations in Washington in earlier October. And domestic market is about to complete replenishing for the holidays in mid-September. Meanwhile, U.S. soybeans will soon go marketing. And Chinese importers are now purchasing Australian rapeseed that is to be sold in October, and some private firms are also buying Canadian rapeseed. Under such a better-than-expected supply state, mills have raised their operation rates to a normal level in recent weeks. Short-term rapeseed oil prices may be subdued when climbing higher and may fluctuate frequently at the high level, and buyers can maintain light stockpiles. 

Cottonseed oil: Cottonseed oil today stays stable due to the low operation rate and almost non-inventory. Besides, today oils on DCE see a moderate drop in the morning session,  and then go up with fluctuations, while spot soybean oil and palm oil is up 20-50 yuan/tonne. However, the market is dragged down when the small-packing oil restocking is about to end; demand becomes weak; and the consumption of cottonseed oil for blending is not a lot. 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.