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China Oils Market Review:Policy news continue to affect the oil market

Source: Mysteel Jan 19, 2026 08:55
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Plant Oil Soybean Demand Price Supply
Last week, vegetable oil futures prices first rose and then fell, driven by multiple narrative-driven factors. The anticipated implementation of the U.S. biodiesel policy in the first quarter boosted overall vegetable oil demand, supporting price increases. On Friday, Canadian Prime Minister Mark Carney stated that Canada will allow up to 49,000 Chinese electric vehicles to enter the Canadian market, subject to the Most Favored Nation tariff rate of 6.1%. By March 1, Canada expects China to reduce tariffs on Canadian rapeseed to a total of approximately 15%. The decline in rapeseed oil prices weighed on the performance of soybean oil and palm oil. In the spot market, both physical prices and the basis for February-May contracts shifted upward, but market trading enthusiasm somewhat weakened. Continued attention is warranted on delivery performance.

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