Today (Aug. 2nd), 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 imported and distributed soybeans in Tianjin port are not many.  U.S. President Donald Trump said the U.S. is putting 10% tariffs on another $300 billion worth of Chinese goods starting Sept. 1, and the tariffs may increase to over 25%, according to Bloomberg. The re-escalation of U.S.-China trade conflicts is supportive of China's soybean market. 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 make a small replenishment upon low price.

Summary: U.S. President Donald Trump ratcheted up trade disputes with China by abruptly announcing that he would impose a 10% tariff on a further $300 billion in Chinese imports beginning September 1st. U.S. soybean futures continued plunging last night, but oil futures manage to rebound on the Dalian Commodity Exchange today. In the spot market, soybean oil and palm oil increase by 20-50 yuan/tonne to attract more low-level purchases, but the total trading remains small. Soybean oil has declined in inventory amid quicker delivery with the start of peak season for packing oil stockpiling, and palm oil inventory has also dropped. Besides, the weather speculation on US soybean crops may come back abruptly, coupled with further tensions between China and the United States. And oil market has thus taken the opportunity to go upward again. Nevertheless, 24-degree palm oil may seen an import of 580,000 tonnes in August, and soybean also at 141 cargoes with 9.10 mln tonnes. And mills is also picking up their operation rates with the reduction of pressure from soybean meal inventory. On the whole, oil market is expected to keep strong in fluctuation before the completion of packing oil stockpiling, but the market may easily post fluctuations at current high prices. Participants must keep good balance of buying and selling. 

Soybean oil: GB Grade I soybean oil is mainly priced at 5,430-5,590 yuan/tonne in domestic coastal areas, up by 30-50 yuan/tonne. (Tianjin 5,430-5,440, Rizhao 5,420, Zhangjiagang 5,590, and Guangzhou 5,580). 

Palm oil: 24-degree palm oil is mainly priced at 4,430-4,500 yuan/tonne in coastal areas, up by 20-50 yuan/tonne. (Tianjin 4,460-4,470, up 20; Rizhao 4,500, up 20; Zhangjiagang 4,420, up 50; Guangzhou 4,430, up 40; and Xiamen not offered).

Imported rapeseed oil: Imported rapeseed oil rises in price today, of which it settles up 20-30 yuan at 6,920-7,020 yuan/tonne in coastal areas. (Fujian not offered; Guangdong 6,920, up 30; and Guangxi 7,020, up 20). The import of rapeseed oil and rapeseed from Canada to China is still blocked by pending issues between these two countries, and rapeseed supply will get tightened before a detente. Besides, the market is now busying stockpiling packing oil. Therefore, rapeseed oil market may stay at a high level. But the demand is subject to its large price gap with soybean oil and palm oil, and mills are expected to gradually pick up their operation rates in coming two weeks due to huge soybean import. Overall, short-term rapeseed oil prices may fluctuate narrowly and frequently at the high level, and buyers can maintain light stockpiles. 

Cottonseed oil: Cottonseed oil today stays stable with low operation rates and the ongoing busy season of packing-oil restocking ahead of the holiday.  China's market is favorable on the re-escalation of U.S.-China trade conflicts as U.S. President Donald Trump suddenly said the U.S. is putting 10% tariffs on another $300 billion worth of Chinese goods starting Sept. 1. Besides, today oils on DCE rebound again, spot soybean oil and palm oil go up 20-50. However, the market is weighted on by the limited consumption for cottonseed oil as blending oils. Short-term cottonseed oil is likely to stay stable with some fluctuations in narrow range. Buyers are suggested to take a hand-to-mouth purchasing strategy and maintain cautious if chasing high.