Today (Sept. 12th), the market for oilseeds and oils in China is shown as follows:

 

Imported soybean: Imported soybean price declines today, among which Russian soybean is down 60 yuan/tonne from yesterday at 3990 yuan/tonne, and Canada soybean is down 20 yuan/tonne from yesterday at 4930 yuan/tonne. The market is still under the negative situations that the demand at Tianjin Port is normal with the upcoming new soybean marketing and the soybean supply globally is ample due to the bumper crop of South America soybean. However, the insufficient volume of China's distributed soybean inventory and the US soybean import restriction is supportive of the price, even though China’s Ministry of Finance announced plans to exempt 16 types of U.S. products from additional tariffs on Wednesday, which doesn't include soybean and other major agriculture products. The market is mixed and short-term prices likely maintain stable.

Cottonseed: Cottonseed prices today are partially stable with 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 buyers are suggested to take a wait-and-see attitude.

Summary: U.S. soybean posted losses last night on good weather conditions in production regions. On the Dalian Commodity Exchange today, oil futures stop rising to decline due to the sign of a detente in trade war after Donald Trump tweeted to postpone the deadline of additional tariffs on $250 billion worth of Chinese goods to Oct. 15 from Oct 1, and also slower demand in domestic market with the end of restocking of packing oils when palm oil arrivals remain huge in September and October. In the spot markets, soybean oil and palm oil slip by 10-60 yuan/tonne with the trading not as good as yesterday. The demand for feed is subdued by the African swine fever which has swept the hog herd in China, so that some southern crush mills choked with soybean meal have no choice but to reduce their operation rates. Soybean import cost from South American remains high due to a tight supply prospect in the fourth quarter, and the import margins of South American soybean oil have also seen slight price inversion again. Therefore, the oil market is still resilient. The market is waiting for the USDA monthly report on Thursday night, which is forecast to be neutral, as both soybean production and inventory in the new season will be lowered down. For the week after the release of the report in the past decade, U.S. soybeans were closed lower for nine years. Due to the sales pressure of new soybeans, U.S. soybeans in this period is easy to close lower. Overall, the oil market is predicted to fluctuate and stay relatively weak, and buyers are suggested to keep light stockpiles. 

Soybean oil: GB Grade I soybean oil is mainly priced at 6,000-6,220 yuan/tonne in domestic coastal areas, up by 10-60 yuan/tonne. (Tianjin traders 6,000-6,010, Rizhao traders 6,050, Zhangjiagang traders 6,220, and Guangzhou traders 6,140-6,150). 

Palm oil: RBD palm olein is mainly priced at 4,770-4,910 yuan/tonne in coastal areas, up by 10-60 yuan/tonne. (Tianjin traders 4,800, down 40; Rizhao traders 4,910, down 10; Zhangjiagang traders 4,870, down 20; Guangzhou traders 4,770, down 60; and Xiamen not offered).

Imported rapeseed oil: Imported rapeseed oil steps down in price today, of which it settles down 30-40 yuan/tonne at 7,390-7,490 yuan/tonne in coastal areas. (Fujian 7,390, down 40; Guangdong not offered; and Guangxi 7,490, down 30). The demand for rapeseed oil is subdued by its enlarged price gap with soybean oil and palm oil. Moreover, soybean crush has been at a relatively high level of above 1.80 mln tonnes in recent two weeks and palm oil arrivals will also be huge in September and October. Meanwhile, the market is about to complete their restocking for the holidays. Therefore, rapeseed oil market is depressed by weaker demand. With the detente in U.S-China relationship, the market is also expecting for some improvement in the relationship between China and Canada. As the market is waiting for the hearing on the extradition of HUAWEI Meng Wanzhou on Sept 23 and the upcoming U.S.-China trade negotiations, rapeseed oil market may fluctuate to adjust in the short term. And buyers can stay on the sidelines 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 stop rising and decline, and spot soybean oil is down 10-60 yuan/tonne, which is due to the slowing demand, and the huge import volume of palm oil during Sept. and Oct., as well as the news that Trump said US will move the increased Tariffs on 250 Billion Dollars worth of goods (25% to 30%), from October 1st to October 15th. 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.