Today (Jul. 30th), 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 4150 yuan/tonne, and Myanmar soybean is at 4670 yuan/tonne, unchanged from yesterday. The insufficient quantity of imported and distributed soybean supports the prices. However, as the US-China trade talks is expected to ease amid the trade talks on Tuesday and Wednesday in Shanghai, US soybeans imports later likely increase. Add the off-season period of soybean demand and global ample supply and the imported and distributed soybean is negative. The market is mixed and short-term prices likely maintain stable.

Cottonseed: Cottonseed prices today are partially stable with most purchase activities suspending, due to the declining supply of cottonseed, and a certain period before the marketing of new cottonseed. However, the market is curbed because the cottonseed trading is not much as oil mills are reluctant to purchase and some mills mainly use its own stock due to poor crush margin. Short-term price is likely to stay stable with fluctuation in narrowed range and buyers can make small replenishment upon low prices.

Summary: U.S. soybean futures posted further rises overnight on resumed U.S.-China trade talks in Shanghai on Tuesday and better weekly exports, but oil futures move lower after higher opens and snap off gains to edge down as traders close their positions after profit-taking in the arbitrage of buying oils and selling meals. In the spot market, soybean oil and palm oil mostly snap off rises to steady and extend a partial gains of 20 yuan/tonne with further lower trading volume. Soybean import will be huge as China has resumed U.S. soybean purchases, so soybean crush will probably go up to 1.59 and 1.80 mln tonnes respectively in the next two weeks; thus, oil market cuts off its upward trend to fluctuate today. However, soybean oil is in better delivery than before due to the start of the peak season for packing oil stockpiling, and its inventory has fallen by 1.4% weekly to 1.42 mln tonnes due to lower soybean crush under swelling soybean meal inventories. Meanwhile, palm oil has also declined by 3.3% weekly to 640,000 tonnes. Therefore, there will be limited space for price declines. Buyers can wait and pay attention to the trade talks, and make proper replenishment on the dips after price declines.

Soybean oil: GB Grade I soybean oil is mainly priced at 5,400-5,580 yuan/tonne in domestic coastal areas, up by 20-30 yuan/tonne partially. (Tianjin 5,400-5,410, Rizhao 5,430, Zhangjiagang 5,580, and Guangzhou 5,540). 

Palm oil: 24-degree palm oil is mainly priced at 4,390-4,480 yuan/tonne in coastal areas, a partial rise of 10-20 yuan/tonne. (Tianjin 4,440-4,450, up 10; Rizhao 4,480; Zhangjiagang 4,400, up 20; Guangzhou 4,390; and Xiamen not offered).

Imported rapeseed oil: Imported rapeseed oil stays basically stable with some slight declines today, of which it settles down partially by 10 yuan at 6,930-7,020 yuan/tonne in coastal areas. (Fujian not offered; Guangdong 6,930, up 50; and Guangxi 7,020). The demand for rapeseed oil is subject to its enlarged price gap with soybean oil and palm oil. Furthermore, mills will pick up the utilization rate for soybean crush again after digesting their soybean meal inventories since soybean import will be huge with the resumed purchases of U.S. soybeans. Therefore, rapeseed oil market may be weighed down. But the price decline may be limited by the tight supply outlook of rapeseed amid lingering conflicts between China and Canada and the upcoming peak season for small packing oil stockpiling. Overall, rapeseed oil prices will stay at the high level and buyers can maintain light stockpiles. 

Cottonseed oil: Cottonseed oil today stays stable with a rise of 100 yuan/tonne for some prices due to the low operation rate, high cottonseed price, and busy season for restocking of packing oils starts. Besides, spot soybean oil and palm oil partially go up 20 yuan/tonne. However, the market is weighted on by the limited consumption for cottonseed oil as blending oils, and high fundamental pressure in staple oil market. Short-term cottonseed oil is likely to move sideways. Buyers are suggested to stay on the sidelines or make proper replenishment upon low price, and maintain cautious if chasing high.