Today (Aug. 27th), 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, of which China has begun the purchase for the year 2020, according to Bloomberg. However, China's market is propped up when imported and distributed soybean in Tianjin port is small and US soybean import is restricted amid an escalation of U.S.-China trade conflicts. 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. 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: Donald Trump said U.S. trade officials received calls from their Chinese counterparts and predicted a trade deal with China, and Chinese Vice Premier Liu He said that China was willing to resolve the trade dispute through negotiations. Due to such a positive sign in trade relationship, U.S. soybeans closed higher last night, but oil futures stop rising to fall on the Dalian Commodity Exchange today. In the spot market, soybean oil and palm oil drop by 20-70 yuan/tonne in tepid trading. There is still much uncertainty in the trade relationship between China and the United States. And as the market is stocking up packing oil in full swing, soybean oil inventory has declined by 1% to 1.32 mln tonnes last week in China. In the meantime, the crush margins Brazilian soybeans have been smaller after a rise in price, and soybean oil has also lost its import profits. Therefore, the oil market is predicted to have little downside space in the short term and to remain relatively strong. But soybean crush will probably return to over 1.80 mln tonnes both this week and next week with the eased inventory of soybean meal, and the market will also finish stocking up ahead of the festival in the middle of September, so market participants also need to focus on such underlying bearish factors. 

Soybean oil: GB Grade I soybean oil is mainly priced at 6,070-6,350 yuan/tonne in domestic coastal areas, down by 20-50 yuan/tonne. (Tianjin 6,070-6,080, Rizhao 6,150, Zhangjiagang 6,350, and Guangzhou 6,170). 

Palm oil: 24-degree palm oil is mainly priced at 4,920-5,090 yuan/tonne in coastal areas, down 20-70 yuan/tonne. (Tianjin 5,080-5,090, down 40; Rizhao not offered; Zhangjiagang 4,980, down 20; Guangzhou 4,920, down 70; and Xiamen not offered).

Imported rapeseed oil: Imported rapeseed oil declines in price today, of which it settles down 20-40 yuan at 7,540-7,690 yuan/tonne in coastal areas. (Fujian 7,540, down 20; Guangdong not offered; and Guangxi 7,600, down 40). The import cost of soybean and oils have been lifted with the substantial devaluation of Chinese yuan. Besides, rapeseed supply is getting tightened due to pending issues between China and Canada. Therefore, rapeseed oil market is buoyed to see just small declines in the short term, and the overall trend will remain strong at the high level. But the demand for rapeseed oil is subject to its big price gap with soybean oil and palm oil. Moreover, soybean crush will likely exceed 1.80 mln tonnes both this week and next week. And the market will almost complete stocking up ahead of the festival in the middle of September. These are all underlying negative factors to the market. Buyers can wait for low and stable prices to make replenishment in small batch. 

Cottonseed oil: Cottonseed oil today stays stable with a rise of 100 yuan/tonne for some prices when operation rate and stock are both low; oil market is still in a busy season of restocking for packing oil amid many orders waiting for delivery. However, the upward potential is curbed by the fall of oils on DCE, a 20-70 yuan/tonne decline of spot soybean oil and palm oil today, and a rise of US soybean overnight as the US-China trade tension may ease after Trump says China and US make a phone call and US is going to have a deal with China, and China's Vice Premier Liu He, its lead trade negotiator, said, "China is willing to resolve its trade dispute with the United States through calm negotiations and resolutely opposes the escalation of the conflict." Short-term cottonseed oil price is likely to stay stable with strong momentum.