Today (Aug. 16th), 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 Canada soybean is at 4800 yuan/tonne. China's market is propped up when imported and distributed soybean in Tianjin port is small and US soybean import is restricted amid  uncertainty over U.S.-China trade relationship. However, the market is still under the negative situations that the demand is normal and the soybean supply globally is ample due to the bumper crop of South America. Short-term prices likely maintain stable.

Cottonseed: Cottonseed prices today stable with a rise of 0.06 yuan/kg and most purchase activities suspending, due to the declining supply of cottonseed, and a certain period before the marketing of new cottonseed. However,  market is curbed because the cottonseed trading is not much as most of oil mills halt the operation due to poor crush margin,  and the mills that are operating are reluctant to purchase.  Short-term price is likely to go strong on the strong trend of oils and meals. Buyers are suggested to make a small replenishment upon low price.

Summary: U.S. soybean dipped further last night on weak export data and good weather in production regions. On the Dalian Commodity Exchange (DCE) today, soybean oil extends gains on the arbitrage of buying oils and selling meals, but palm oil drops with fluctuations. In the spot market, soybean oil mostly goes up by 50-120 yuan/tonne, while palm oil fluctuates by 20-30 yuan/tonne in tepid trading. Y2001 contract of soybean oil on the DCE surged to 6,300 yuan/tonnes at one point in early trading, but then quickly fell to below 6,200 yuan/tonne due to lucrative import of crude soybean oil from Argentina, whose import cost is only 6,190 yuan/tonne for shipments from October to December. The spot market ha been in a cautious mood due to considerable oscillations on the DCE, so the trading was less than 20,000 tonnes for two days in row. Soybean crush remains at a low level since soybean meal prices have been crippled under the African swine fever, whilst soybean oil is in quick delivery as buyers are stocking up for the holidays. Soybean oil inventory is decreasing, so is palm oil. And the market may enter into the weather speculation on U.S. soybeans at any time. Besides, it still requires greater efforts to clear trade tensions between China and the United States. Therefore, oil market is now getting support from positive fundamentals, and may maintain its strong momentum when buyers are still busy stocking up oils. But there may more fluctuations at current high levels, so buyers still need to prevent risks and can stay on the sidelines if with adequate stockpiles. 

Soybean oil: GB Grade I soybean oil is mainly priced at 6,030-6,350 yuan/tonne in domestic coastal areas, up by 50-120 yuan/tonne. (Tianjin 6,100-6,110, Rizhao 6,030, Zhangjiagang 6,350, and Guangzhou 6,210). 

Palm oil: 24-degree palm oil is mainly priced at 4,730-4,880 yuan/tonne in coastal areas, fluctuating by 20-40 yuan/tonne. (Tianjin 4,870-4,880, up 30; Rizhao 4,880, down 20; Zhangjiagang 4,760, down 40; Guangzhou 4,730-4,740, flat; and Xiamen 4,750, down 20).

Imported rapeseed oil: Imported rapeseed oil rises in price today, of which it goes up by 80-100 yuan to settle at 7,330-7,430 yuan/tonne in coastal areas. (Fujian 7,330, up 100; Guangdong not offered; and Guangxi 7,360, up 80). It is a long way ahead for trade talks between Beijing and Washington, whilst there is no any practical progress between Beijing and Ottawa; hence, rapeseed supply is in a tight prospect. Besides, buyers are now stocking up packing oil in the market at full swing, sending the trading volume of crude rapeseed oil to reach around 23,000 tonnes in East China and 10,000 tonnes in the South yesterday. Moreover, there may be more weather speculations on U.S. soybean crops later. Therefore, rapeseed oil market goes relatively strong. But imported soybean and palm oil will arriving at ports in large quantities, and there is a huge price gap between rapeseed oil and soybean oil; hence, rapeseed oil prices may have limited upward impetus. Due to the good margins from imported Argentine crude soybean oil, oil futures pare most gains soon after rushing higher in early trade, so buyers are suggested not to drive up prices excessively. 

Cottonseed oil: Cottonseed oil today stays stable when operation rate and output are both low; oil market is in a busy season of restocking for packing oil  amid many orders waiting for delivery. Besides, due to the arbitrage of buying oils and selling meals, today oils on DCE further increase, and spot soybean oil mostly goes up 50-120 yuan/tonne. However, cottonseed oil consumption for blending oil is at a limited level. Short-term cottonseed oil is likely to fluctuate with strong trend. Buyers are suggested to stay on the sideline or take a hand-to-mouth buying strategy.