Today (Sept. 26), 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 3750 yuan/tonne, and Canada soybean with 43% protein is unchanged from yesterday at 4600 yuan/tonne. The market is bearish on the increasing supply from new soybeans and a potential supply from US soybean imports. Bloomberg reports Trump said trade deal with China could happen sooner than people think, and China were making a big purchase of US soybean as a goodwill before the high-level trade consultation. If the consultation goes well, more US soybeans will be imported. Short-term prices likely maintain stable for now.

Cottonseed: Cottonseed prices today stay stable with a drop of 0.02~0.06 yuan/kg with most purchase activities suspending when cottonseed price is high; cottonseed oil mills largely halt operation for the National Day and military parade; the trading volume is small with only a few oil mills making some purchases; a few mills make orders for the advance sale of Xinjiang cottonseed; the supply increases on the marketing of cottonseed. The prices are likely to further fall back before National Day and buyers may stay on the sideline.

Summary: US soybeans slipped last night as the market was concerned about US-China trade relations after President Donald Trump criticized Chinese trade policy in his address, and as thoughts of frost risks in the US Midwest began to fade. On the Dalian Commodity Exchange today, oil futures stay in the weak trend and choppy after exports of Malaysian palm oil declined by 20% month on month in the first 25 days this month. In the spot markets, soybean oil and palm oil post a partial drop of 10-30 yuan/tonne with reduced trading. Soybean oil inventory is increasing when mills are keeping soybean crush at a relatively high level, and imports of palm oil are also significant. With huge supply in the market, oil prices will continue to come under pressure. But buyers are still stocking up bulk oils ahead of the holidays, with soybean oil trading at 35,000 tonnes yesterday. Moreover, most mills in Shandong and North China will halt production due to the holiday and the parade. Therefore, there will be limited price declined. In the short term, spot oil prices are predicted to follow futures to stay in range-bound, choppy trading. With the coming of soybean harvests and sales in the US and slack demand after the holidays at home, domestic oil market may be quiet, so buyers can keep light stockpiles. 

Soybean oil: GB Grade I soybean oil is mainly priced at 5,930-6,160 yuan/tonne in domestic coastal areas, some down 10-30 yuan/tonne. (Tianjin traders 5,930-5,940, Rizhao traders 6,010, Zhangjiagang traders 6,160, and Guangzhou traders 6,010). 

Palm oil: RBD palm olein is mainly priced at 4,640-4,810 yuan/tonne in coastal areas, down 10-20 yuan/tonne partially. (Tianjin traders 4,740-4,750, flat; Rizhao traders 4,800-4,810, down 10; Zhangjiagang traders 4,750, down 20; Guangzhou traders 4,640-4,660, flat; and Xiamen 4,730, flat).

Imported rapeseed oil: Imported rapeseed oil stays basically stable in price today, of which it settles at 7,300-7,400 yuan/tonne in coastal areas. (Fujian 7,300, flat; Guangdong not offered; and Guangxi 7,400, flat). The supply outlook of rapeseed is tight due to sticky problems between China and Canada, so rapeseed crush keeps decreasing. This helps rapeseed oil prices stay at the high level. But buyers have finished restocking packing oils for the holidays and the demand is predicted to turn weak after that. In addition, new US soybeans will soon be harvested and go marketing. Therefore, rapeseed oil prices will have less upward impetus. Short-term rapeseed oil will likely fluctuate narrowly at the high level, and buyers can wait or buy on immediate demand.

Cottonseed oil: Cottonseed oil today stays stable when cottonseed price is high; cottonseed oil mills largely halt operation for the National Day and military parade. However, the market is weighted on as the packing-oil restocking is over; the consumption of cottonseed oil for blending is limited; today oils on DCE fluctuate in weak trend, and spot soybean and palm oil partially decline 10-30 yuan/tonne. Before National Day holiday, the prices are likely to stay stable with some fluctuations, and after that, move in weak trend. Buyers can stay on the sideline.