Today (Sept. 30), the market for oilseeds and oils in China is shown as follows:

 

Imported soybean: Imported soybean price is steady with some decline today, among which Canada soybean with 43% protein drop 130 yuan/tonne from yesterday at 4470 yuan/tonne, and Myanmar soybean is unchanged from yesterday at 4460 yuan/tonne. The supply increases on the marketing of new soybeans. Chinese Vice Premier Liu He will lead the Chinese delegation to visit Washington D.C. for the 13th round of the China-U.S. high-level economic and trade consultations in the week following China's National Day holiday. US private exporters reported to the U.S. Department of Agriculture last Friday export sales of 126,000 metric tons of soybeans for delivery to China during the 2019/2020 marketing year. With the ease of US-China trade tension, more US soybeans may 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 0.01~0.04 yuan/kg and most are not offered. The market is weighted on when only a few oil mills are under operation and make purchase for spot goods; the supply increases on the marketing of Xinjiang cottonseed. The prices are likely to further fall back during National Day, and is possible to see a small and short-term rebound on intensive purchase in middle and ending of next month. Buyers may stay on the sideline or take a a hand-to-mouth buying strategy.

Summary: US soybean closed lower last Friday on benign weather in production regions, but the loss was limited as China continued buying US soybeans, and a fresh round of high-level trade negotiations would be held between China and the United States in Washington in the week after China’s National Day holiday. And on the Dalian Commodity Exchange today, soybean oil eases slightly and palm oil fluctuates in the correction territory. In the spot markets, soybean oil posts a partial loss of 10 yuan/tonne, and palm oil partially goes ups and downs by 10-30 yuan/tonne. The trading is just a little as buyers have already made replenishment for the National Day holiday, which lasts for seven days from October 1st. Soybean oil inventory posts a slight weekly increase to 1.35 mln tonnes amid slow delivery. In addition, Chinese importers are buying up on US soybeans, palm oil imports are also huge. Therefore, domestic oil is in ample supply. 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 holiday. Besides, President Donald Trump said that a deal to end the trade war with China was highly possible and could happen sooner than people think. And US farmers are about to harvest their soybean crops and put them on the market, and Chinese buyers will have slack demand for oils after the holiday. These are all negative the market. Therefore, the oil market is predicted to continue its relatively weak trend recently, and buyers can wait 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 down by 10 yuan/tonne. (Tianjin traders 5,840-5,850, Rizhao traders 5,920, Zhangjiagang traders6,050, and Guangzhou traders 5,950). 

Palm oil: RBD palm olein is mainly priced at 4,650-4,820 yuan/tonne in coastal areas, some fluctuating by 10-30 yuan/tonne. (Tianjin traders 4,740-4,750, flat; Rizhao traders 4,810-4,820, up 30; Zhangjiagang traders 4,760, up 20; Guangzhou traders 4,650, down 10; and Xiamen not offered).

Imported rapeseed oil: Imported rapeseed oil drops in price today, of which it settles down 30-50 yuan at 7140-7320 yuan/tonne in coastal areas. (Fujian not offered; Guangdong not offered; and Guangxi 7350, down 50). Market participants are worried about the uncertainty in upcoming US-China trade negotiations and the hearing against Meng Wanzhou. Besides, inventories of soybean oil and rapeseed oil both increased last week, and RBD palm olein imports are predicted to be 600,000 tonnes in October and not less than 500,000 tonnes in November. Domestic oil market is still in ample supply, but buyers will have slack demand for oils after the holiday. Meanwhile, US farmers are about to harvest their soybeans and put them on the market. The rapeseed oil market is thus weighed down, and may continue the trend after the holiday. Buyers can take a watch-and-wait policy. 

Cottonseed oil: Cottonseed oil today stays stable when only a few cottonseed oil mills are operating; cottonseed meal supply is small. 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; supply will increase on a rising operation rates after National Day Holiday; today meals on DCE drop a little, and spot soybean oil is partially down 10 yuan/tonne. After National Day holiday, the prices are likely to see a proper drop. Buyers can stay on the sideline.