China could turn to palm oil amid trade tensions

Rising tensions in the US-China trade dispute could prompt China to turn to palm oil as a substitute for soybean, potentially increasing demand for palm oil. However, Hong Leong Investment Bank (HLIB) Research said this positive impact may be offset by uncertainties in global demand, driven by US-imposed tariffs and falling crude oil prices. “The US now charges a 145 per cent tariff on Chinese goods while China imposes a 125 per cent tariff on US goods. “While the current situation remains fluid, witnessed by the flipflopping change in US policies, including a 90-day pause on tariffs for most countries except for China, the intensified trade tension between US and China will result in a shift in trade flows within the vegetable oil complex,” it said in a note. The firm noted that the heightened US-China trade tensions will likely prompt China to lessen its reliance on US soybean imports. It said this could be done by redirecting some of its purchases to South American ...