Today (Aug. 23rd), 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 3990 yuan/tonne, and Canada soybean is unchanged from yesterday at 4860 yuan/tonne. 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 soybean, which China is active in purchasing. However, China's market is propped up when imported and distributed soybean in Tianjin port is small and US soybean import is restricted amid U.S.-China trade war. Short-term prices likely maintain stable.

Cottonseed: Cottonseed prices today stable with a rise of 0.04 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, the cottonseed trading is not much as only a few mills are operating due to poor crush margin. Short-term cottonseed is likely to go strong. Buyers thereby had better make a small replenishment upon low prices and not chase high bids too far.

Summary: The final day of the Pro Farmer Midwest Crop Tour reported an improving yield potential of U.S. soybeans in some regions of Iowa and Minnesota, so U.S. soybeans closed lower last night. And on the Dalian Commodity Exchange today, soybean oil moderately declines and palm oil also hovers below the previous close in spite of some gains. In the spot markets, soybean oil partially declines by 10-20 yuan/tonne and palm oil partially rises by 10-20 yuan/tonne in tepid trading. Due to good crush margins, importers purchased at least 25 cargoes of South American soybeans in the first four days of this week, and 34 cargoes last week. Meanwhile, Argentine soybean oil saw the trading at 12,000 tonnes yesterday with duty-paid price at 6,130 yuan/tonnes for October to December shipments, whilst domestic soybean oil delivery has slightly slowed down in recent few days. Besides, White House economic adviser Larry Kudlow said on Wednesday that China and the United States agreed to have another telephone talk in the next few days after a constructive exchange on Wednesday, which is a sign that the two countries are seeking to resolve their trade disputes. As a result, domestic oil futures fluctuate to fall today. However, mills have maintained low operation rate due to swelling soybean meal inventory, and oil inventories continue dropping as the market is still stocking up for the Mid-autumn festival and National Day. Moreover, Malaysian palm oil futures remain strong due to lower-than-expected production and good export. Therefore, the oil market is resilient now, and there will be little room even with some declines. The overall market may go strong with some fluctuations, but there will be more pressure to fall with the completion of stockpiling and the appearance of U.S. soybean sales pressure, so buyers are suggested not to drive up prices excessively. 

Soybean oil: GB Grade I soybean oil is mainly priced at 6,000-6,260 yuan/tonne in domestic coastal areas, partially down by 10-20 yuan/tonne. (Tianjin 6,000-6,010, Rizhao 6,020, Zhangjiagang 6,260, and Guangzhou 6,140). 

Palm oil: 24-degree palm oil is mainly priced at 4,850-4,970 yuan/tonne in coastal areas, partially up by 10-20 yuan/tonne. (Tianjin 4,960-4,970, up 20; Rizhao 4,950, flat; Zhangjiagang 4,850, up 10; Guangzhou 4,850, up 10; and Xiamen not offered).

Imported rapeseed oil: Imported rapeseed oil declines in price today, of which it settles down 20-30 yuan at 7,420-7,500 yuan/tonne in coastal areas. (Fujian 7,420, down 30; Guangdong not offered; and Guangxi 7,750, stable). The demand for rapeseed oil is subject to its big price gap with soybean oil and palm oil, bringing a dismal scene to its market. Moreover, mills may gradually increase soybean crush due to huge soybean imports later. Besides, White House economic adviser Larry Kudlow said on Wednesday that China and the United States agreed to have another telephone talk in the next few days after a constructive exchange on Wednesday, which is a sign that the two countries are seeking to resolve their trade disputes. And this is bearish to domestic market. Therefore, rapeseed oil market will be dragged down. But rapeseed supply in China will get tightened due to its pending issues with Canada, and the market is still stocking up packaged oil; thus, rapeseed oil market is drawing some support. Overall, short-term rapeseed oil price will have little downside space and may remain strong with some fluctuations at high levels. Buyers can wait for the moment. 

Cottonseed oil: Cottonseed oil today stays stable when operation rate and stock are both low; oil market is in a busy season of restocking for packing oil amid many orders waiting for delivery. However, cottonseed oil is weighted on by the limited consumption for cottonseed oil as blending oils. Besides, today soybean oil on DCE fall back mildly, and sport soybean oil is partially lower 10-20 yuan/tonne. Short-term cottonseed oil is likely to stay stable with strong trend. White House economic adviser Larry Kudlow said the deputies' call with Chinese officials on Wednesday was quite constructive and the deputies had agreed to another conference call. The US-China trade tension may ease, which should be paid attention to.