Today (Sept. 27), 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 supply increases on the marketing of new soybeans. US private exporters reported to the U.S. Department of Agriculture export sales of 257,000 metric tons of soybeans for delivery to China during the 2019/2020 marketing year. And China further purchases US soybean before the US-China high-level trade consultation at the beginning of October, and if the consultation goes well, more US soybeans would be imported. All these are negative to China's market. Short-term prices likely maintain stable for now.

Cottonseed: Cottonseed prices today are stable with a decline of 0.02 yuan/kg and mostly not quoted, 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 soybean edged lower last night, and soybean oil posts a sudden and quick drop as Chinese importers are purchasing US soybeans, and palm oil also fall slightly on the Dalian Commodity Exchange today. In the spot markets, soybean oil drops by 50-100 yuan/tonne and palm oil falls by 20-40 yuan/tonne, and the trading remains tepid as buyers are cautious. The inventory of soybean oil is increasing with high operation rates in soybean crush, and palm oil imports are also huge. While oil is in abundant supply, the oil demand will turn slack after the holiday. The demand for meals on the other hand may increase as local governments provide strong support to resume hog production, so soybean crush will be raised. The overall oil market will likely post slight declines, and buyers can stay on the sidelines. 

Soybean oil: GB Grade I soybean oil is mainly priced at 5,850-6,050 yuan/tonne in domestic coastal areas, down 30-130 yuan/tonne. (Tianjin traders 5,850-5,860, Rizhao traders 5,930, Zhangjiagang traders 6,050, and Guangzhou traders 5,920). 

Palm oil: RBD palm olein is mainly priced at 4,620-4,740 yuan/tonne in coastal areas, down 20-40 yuan/tonne. (Tianjin traders 4,730-4,740, down 20; Rizhao traders not offered; Zhangjiagang traders 4,740, down 30; Guangzhou traders 4,620-4,640, down 40; and Xiamen not offered).

Imported rapeseed oil: Imported rapeseed oil drops drastically in price today, of which it settles down 50-80 yuan at 7,200-7,400 yuan/tonne in coastal areas. (Fujian 7,200, down 80; Guangdong not offered; and Guangxi 7,400, down 50). The demand for rapeseed oil is subdued by its big price gap with soybean oil and palm oil. Domestic oil market is in liberal supply when the demand turns slack with the holidays coming. And soybean harvest is underway in the US late next month. Rapeseed oil market thus fluctuates to fall. But the downside space may be limited by the concern about pending issues between China and Canada, and the declining inventories of rapeseed and rapeseed oil. The market after the holidays remains unclear, and buyers can just stay on hold. 

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 oils market after holiday will be in off season; the consumption of cottonseed oil for blending is limited; Amid a further purchase of US soybean by China, today soybean oil on DCE suddenly sees an accelerating decline, and spot soybean oil and palm oil drop 50-100 yuan/tonne and 20-40 yuan/tonne separately. Before National Day holiday, the prices are likely to stay stable with some fluctuations, and after that, see a proper drop on a rising operation rates. Buyers can stay on the sideline.