Today (Sept. 29), the market for oilseeds and oils in China is shown as follows:

 

Imported soybean: Imported soybean price is steady today, among which Canada soybean with 43% protein is unchanged from Friday at 4600 yuan/tonne, and Myanmar soybean is unchanged from Friday at 4460 yuan/tonne. The supply increases on the marketing of new soybeans. US private exporters reported to the U.S. Department of Agriculture this Friday export sales of 126,000 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 with weak momentum.

Cottonseed: Cottonseed prices today see a drop of 0.02~0.07 yuan/kg and most are not offered. The market is weighted on when cottonseed price is high; only a few oil mills are under operation and make purchase for spot goods before National Day and military parade; the supply increases on the marketing of Xinjiang cottonseed. The prices are likely to further fall back around National Day and buyers may stay on the sideline.

Summary: US soybeans fell on Friday on favorable weather in production regions, and the Dalian Commodity Exchange is closed today. In the spot markets, soybean oil and palm oil are stable with some rises of 10-20 yuan/tonne in tepid trading. Soybean crush declines by 1% to 1.815 mln tonnes as downstream buyers have replenished for the holidays, but the decline is too small, so that soybean oil inventory has increased by 1,100 tonnes to 1.3492 mln tonnes. Meanwhile, Chinese importers are purchasing US soybeans thanks to the resumed trade talks, and US private sellers are said to have sold 126,000 tonnes to China. And palm oil is also in substantial imports. While domestic oil market is in adequate supply, buyers will have slack demand after the holidays. In addition, the demand for soybean meal may recover now that local governments are striving for recovering hog production, so mills may keep operation rates at the high level back from the holidays. Outweighed by the bearish factors, the overall oil market is predicted to fluctuate to stay relatively weak, and buyers can wait for the moment or buy as per daily requirement. 

Soybean oil: GB Grade I soybean oil is mainly priced at 5,850-6,050 yuan/tonne in domestic coastal areas, some up by 10 yuan/tonne. (Tianjin traders 5,850-5,860, Rizhao traders 5,940, Zhangjiagang traders not offered, and Guangzhou traders 5,960). 

Palm oil: RBD palm olein is mainly priced at 4,660-4,780 yuan/tonne in coastal areas, some up 20 yuan/tonne. (Tianjin traders 4,750, up 20; Rizhao traders 4,780, flat; Zhangjiagang traders not offered; Guangzhou traders 4,660 and Xiamen not offered).

Imported rapeseed oil: Imported rapeseed oil drops in price today, of which it settles down 30 yuan partially at 7,170-7,350 yuan/tonne in coastal areas. (Fujian not offered; Guangdong not offered; and Guangxi not offered). The demand for rapeseed oil is subdued by its big price gap with soybean oil and palm oil, so its inventory has increased a little bit to 85,000 tonnes in coastal regions on Friday. While domestic oil market is in liberal supply as palm oil imports will be huge in next two months and new US soybeans will flow into the market in late October, buyers will have slack demand for oils after the holidays. Therefore, rapeseed oil market has trended sideways to tumble. 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; only a few oil mills is operating before the National Day and military parade amid insufficient cottonseed supply; spot soybean oil and palm oil are stable with some rises of 10-20 yuan/tonne. 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. 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.