Today (Aug. 1st), 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. As to the trade talks that have ended for this round, the two sides discussed the issues of purchasing more US agricultural products, but the purchase agreement and details are not published. A further negotiation will be held at the beginning of Sept. There are still some uncertainties over US-China trade relationship. However, the market is still under the negative situations that it's off-season period and the soybean supply globally is ample. 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. Buyers are suggested to stay on the sideline for the present amid an adjustment of meals.

Summary: U.S. and Chinese negotiators ended this round of trade talks and agreed to meet again in Washington in September, during which both sides focused on China to buy more agricultural products from the U.S., but no purchase agreement or detail was mentioned. U.S. soybean futures fell amid such an uncertain situation, and oil futures also extend losses on the Dalian Commodity Exchange today. In the spot market, soybean oil and palm oil slip by 20-40 yuan/tonne in weak trading. Mills will gradually raise their operation rate with the reduction of pressure from soybean meal inventory and huge soybean import later. And buyer turn cautious after consecutive price rises so that there is a sign of fund outflow. Short-term oil market may continue to drop to adjust. But soybean oil and palm oil inventories have both declined with the start of the peak season for packing oil stockpiling, and there may be again the weather speculation on the U.S. soybean crops. With stronger support at the bottom of oil market, the price is predicted to have little downside potential. The overall market will probably fluctuate to consolidate, and buyers can wait for this round of declines to make proper replenishment.

Soybean oil: GB Grade I soybean oil is mainly priced at 5,380-5,540 yuan/tonne in domestic coastal areas, down by 20-40 yuan/tonne. (Tianjin 5,380-5,390, Rizhao 5,380, Zhangjiagang 5,540, and Guangzhou 5,510-5,520). 

Palm oil: 24-degree palm oil is mainly priced at 4,390-4,460 yuan/tonne in coastal areas, mostly down by 20-30 yuan/tonne. (Tianjin 4,420-4,430, down 20; Rizhao 4,460, down 20; Zhangjiagang 4,370, down 30; Guangzhou 4,390, flat; and Xiamen not offered).

Imported rapeseed oil: Imported rapeseed oil declines in price today, of which it settles down 10-20 yuan at 6,880-6,980 yuan/tonne in coastal areas. (Fujian not offered; Guangdong 6,880; and Guangxi 6,980, down 20). The demand for rapeseed oil is reducing, which can be attributed to its large price gap with soybean oil at a high level of 1,400 yuan/tonne. Moreover, oil mills are expected to gradually pick up their operation rate with the reduction of soybean meal inventory pressure and huge soybean import recently. Therefore, rapeseed oil market is dragged down. But rapeseed supply may get tightened due to the unsolved issues between Beijing and Ottawa, and the stockpiling for packing oil has already entered into the peak season; thus, rapeseed oil prices may have limited declines. Overall, the prices will stay at a high level, and buyers can maintain light stockpiles. 

Cottonseed oil: Cottonseed oil today stays stable with a rise of 150 yuan/tonne for some prices due to the low operation rate, high cottonseed price ,and the start for the season of packing-oil stockpiling. However, cottonseed oil consumption is not a lot as blending oils. Besides, for the trade talks that have ended for this round, the two sides discussed the issues of purchasing more US agricultural products, but the purchase agreement and details are not published. A further negotiation will be held at the beginning of Sept. The uncertainties over trade talks make oils on DCE further decline, spot soybean oil and palm oil down 20-40 as well. All these factors drag down cottonseed oil and short-term prices are likely to move sideways. Buyers are suggested to stay on the sideline and maintain cautious if chasing high.