Today (Aug. 26th), 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 last Friday at 3990 yuan/tonne, and Canada soybean is at 4860 yuan/tonne, unchanged from last Friday. 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, with a total of 36 cargoes last week. However, China's market is propped up when imported and distributed soybean in Tianjin port is small and US soybean import is restricted amid re-escalation of U.S.-China trade conflicts last weekend. China and US impose tariff on goods from each other and the trade war is unlikely to end in short run. 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 amid a few cotton harvest in some regions. However, the cottonseed trading is not much as only a few mills are operating due to poor crush margin. Meals and oils all rise on the re-escalation of U.S.-China trade conflicts last weekend and short-term cottonseed is likely to go strong. Buyers may make small replenishment upon low prices.

Summary: U.S. soybeans closed lower last Friday night after China announced to impose additional tariffs of 10 percent or 5 percent on approximately $75 billion of U.S. products, of which it would impose an extra 5% tariff on U.S. soybeans, and on early Saturday morning, President Donald Trump announced to raise existing duties on $250 billion in Chinese products to 30% from 25% on Oct. 1, and the tariffs on another $300 billion in Chinese goods to 15% from 10%. Amid another escalation in U.S.-China trade frictions, the off-shore exchange rate of Chinese yuan has devalued significantly even below 7.18 today. And this has lifted the import cost of soybean and oils. Oils futures post sharp gains on the Dalian Commodity Exchange today. And in the spot market, soybean oil increases by 100-130 yuan/tonne and palm oil by 130-150 yuan/tonne with some low-level purchases, but the total trading remains tepid. The oil market had stopped rises and fluctuated last week, but now, it is predicted to keep its strong trend in the short term due to the escalation in the trade frictions over the weekend, in addition that soybean oil inventory continued dropping by 1% weekly to 1.32 mln tonnes. However, Chinese importers bought a total of 36 cargoes of South American soybeans last week due to handsome crush margins on the commodity exchange, and Argentine soybean oil is also profitable. And soybean crush is predicted to improve significantly in the coming few weeks due to somewhat eased soybean meal inventory. Participants also need to pay attention to those underlying bearish factors.

Soybean oil: GB Grade I soybean oil is mainly priced at 6,100-6,380 yuan/tonne in domestic coastal areas, up by 100-130 yuan/tonne. (Tianjin 6,100-6,110, Rizhao 6,160, Zhangjiagang 6,380, and Guangzhou 6,210). 

Palm oil: 24-degree palm oil is mainly priced at 5,010-5,150 yuan/tonne in coastal areas, up by 130-150 yuan/tonne. (Tianjin 5,120-5,150, up 130; Rizhao 5,120, up 140; Zhangjiagang 5,000, up 150; Guangzhou 5,010, up 130; and Xiamen not offered).

Imported rapeseed oil: Imported rapeseed oil rises drastically in price today, of which it settles up 100-150 yuan at 7,550-7,800 yuan/tonne in coastal areas. (Fujian 7,550, up 130; Guangdong not offered; and Guangxi 7,800, up 50). China announced to impose additional tariffs of 10 percent or 5 percent on approximately $75 billion of U.S. products, of which it would impose an extra 5% tariff on U.S. soybeans, and then, President Donald Trump also announced to raise existing duties on $250 billion in Chinese products to 30% from 25% on Oct. 1, and the tariffs on another $300 billion in Chinese goods to 15% from 10%. Amid an escalation in U.S.-China trade frictions, U.S. soybeans closed lower last Friday night, but the off-shore exchange rate of Chinese yuan has devalued significantly even below 7.18 today, which has lifted the import cost of soybean and oils. And oils futures significant gains in domestic market today. Meanwhile, the import of Canadian rapeseed and rapeseed oil is confronted with unsettled issues between Beijing and Ottawa, so rapeseed supply is getting tightened. Besides, domestic market is still stocking up packing oil, sending rapeseed oil inventory to fall by 4.5% weekly to 466,000 tonnes last week. These will help buoy rapeseed oil market to run firmly, but its demand is still influenced by its big price gap with soybean oil. Buyers are suggested not to drive up prices excessively. 

Cottonseed oil: Cottonseed oil today stays stable with a rise of 50-200 yuan/tonne 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. China’s Ministry of Finance announces on its website that it will apply new tariffs of between 5% and 10% on $75 billion worth of goods from the United States, including an additional tariff of 5% on soybean based on the previous 25% additional tariff. Trump tweets that duties on goods imported from China will be increased: on Oct. 1, tariffs on $250 billion China's products will rise from 25% to 30%; tariffs planned for Sept. 1 on $300 billion worth of Chinese goods will now be 15%, instead of 10%. The cost of imported soybean and oils will increase after a big devaluation of RMB, offshore rate briefly falling below 7.18, and today oils on DCE surge, spot soybean oil and palm oil up 100-150 yuan/tonne. However, cottonseed oil consumption for blending oil is at a limited level and the rise of cottonseed oil is less than that of staple oils. Short-term prices are likely to go strong.