Abstract: Based on the auction results of rapeseed oil in temporary reserve onOctober 20 of 2010, the authors analyze the role of auction of the rapeseed oil in stabilizing edible oil market in China in this article. At the end of thisarticle, policy proposals such as increasing the temporary reserve of rapeseed and allocating more reserves to Yunnan, Guizhou and Sichuan provinces as wellas raising the subsidy of well-bred rapeseed and adding the direct subsidy of farming rapeseed, etc. are suggested in order to further stabilize China's edible oil market in the future.