Today (Oct. 15), 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 41% protein is  unchanged from yesterday at 4350 yuan/tonne, Myanmar soybean is unchanged from yesterday at 4450 yuan/tonne, and Ukraine soybean is unchanged from yesterday at 3470 yuan/tonne. More US soybeans will be imported when the trade war has eased and China will purchase between $40 billion and $50 billion worth of U.S. agricultural products. Add the marketing of China soybean and the supply is ample, but the demand is normal for now. The quotations by traders move sideways with weak trend. Short-term imported soybeans for distribution are likely to be steady with weak momentum.

Cottonseed: Cottonseed prices decline by 0.02-0.06 yuan/kg today. Oil mills are less motivated to purchase cottonseed, so cottonseed price is depressed. Besides, the price of Xinjiang cottonseed delivered to inland oil mills also falls due to the lower freight from Xinjiang to inland. With the increasing supply of cottonseed and wane of staple oils and meals, short-term cottonseed prices may mainly fall back with fluctuations, and buyers can take a wait-and-see attitude.

Summary: Freezes hit more regions than forecast in the US production belt, and China and the United States came to a thaw in trade relationship, so US soybeans continued gains last night. But oil futures extend losses yet still hover around the previous close on the Dalian Commodity Exchange today due to the bearish atmosphere in domestic market after the trade detente. In the spot markets, oils prices mostly steady, of which soybean oil fluctuates partially by 10-30 yuan/tonne and palm oil down partially by 50 yuan/tonne, and the trading is tepid with some low-level purchases for replenishment. Domestic demand for soybean meal will be improving due to good breeding margins, so soybean crush will return to a high level in the coming two weeks. And soybean oil stocks have already increased by 0.2% to 1.354 mln tonnes. In addition, Indian refiners have slashed palm oil import from Malaysia after Indian government announced that it would seek other origins. Therefore, domestic oil market is under pressure. But soybean import for China is more expensive as US soybean prices goes higher and higher after the USDA report sharply cut down soybean stocks estimates. And domestic mills now have huge amount of outstanding contracts. Both of these will help limit downside space of domestic oil market. On the whole, short-term oil market will follow futures to fluctuate to adjust, and buyers can wait for low and stable prices to make appropriate replenishment. 

Soybean oil: GB Grade I soybean oil is mainly priced at 5,930-6,070 yuan/tonne in domestic coastal areas, partially fluctuating by 10-30 yuan/tonne. (Tianjin traders 5,930-5,940, Rizhao traders 5,970, Zhangjiagang traders 6,070, and Guangzhou traders 5,980). 

Palm oil: RBD palm olein is mainly priced at 4,670-4,810 yuan/tonne in coastal areas, a partial decline of 50 yuan/tonne. (Tianjin traders 4,790-4,800, flat; Rizhao traders 4,810, down 50; Zhangjiagang traders 4,760, flat; Guangzhou traders 4,640, flat; and Xiamen yet offered).

Imported rapeseed oil: Imported rapeseed oil steps down in price today, of which it settles down30-50 yuan/tonne at 7,250-7,350 yuan/tonne in coastal areas. (Fujian 7,250, down 50; Guangdong yet offered; and Guangxi 7,650, stable).When the demand for rapeseed oil is influenced by its remarkably higher price than soybean oil and palm oil, domestic oil market now has adequate supplies, and some private firms are said to have purchase Canadian rapeseed. Therefore, rapeseed oil market is dragged down further. But Chinese importers will not purchase substantial rapeseed and rapeseed oil from Canada in consideration of unsteady bilateral relations, which will help limit price declines. Overall, the market is predicted to fluctuate at the high level to adjust in the short term, and buyers can wait at the moment. 

Cottonseed oil: Cottonseed oil stays stable today. Oil mills have a strong will to prop up prices which stay stable at present. But oil mills continue boosting operation rate, and the demand for oils gradually goes into an off-season, so the consumption of cottonseed oil as blending oil is limited. Therefore, cottonseed oil market is weighed down by all these factors. And short-term cottonseed oil is predicted to keep falling back with fluctuations. Buyers can stay on the sideline or buy on immediate demand.