Today (Feb. 10), the market for oilseeds and oils in China is shown as follows:

 

 

Cottonseed: The cottonseed is not offered today. And a minority of enterprises have submitted an application for returning to job. But it is difficult to get approved, and logistics are blocked, so enterprises delay the production. Also, the supply of cottonseed is limited on the market, which supports cottonseed market. However, the demand from catering industry has been hard hit by fears amid the novel coronavirus pneumonia epidemic, which leads cottonseed oil to risk in dropping. And the demand for meals would be not improved soon. Therefore, cottonseed market is weighed down, and the price may drop moderately after trading resuming.

 

Oils: 

 

Summary: US soybean futures ended higher last Friday on technical buying and delayed harvests by rainfalls in Brazil. Oil futures fluctuate to decline slightly on the Dalian Commodity Exchange today. In the spot markets, soybean oil partially fluctuates by 20-30 yuan/tonne and palm oil posts a partial decline of 40-50 yuan/tonne. As most mills have delayed the production under the epidemic, soybean crush only totaled 790,000 tonnes last week, which is less than half of a normal level. Rapeseed oil futures are the best performers, which is bullish to the oil market. But the catering industry is still crippling under the epidemic, and importers keep purchasing Brazilian soybeans. Besides, Malaysian palm oil exports dropped by 27% in the first ten days of February, and its stocks go slightly higher than expected to 1.76 mln tonnes. In a hybrid of a bull and a bear, short-term oil market is predicted to follow futures to fluctuate frequently. Buyers can keep light stockpiles. 

 

Soybean oil: GB Grade I soybean oil is mainly priced at 6430-6740 yuan/tonne in domestic coastal areas, fluctuating by 20-30 yuan/tonne. (Tianjin traders 6440-6460; Rizhao traders 6600; Zhangjiagang traders 6740; and Guangzhou traders 6630-6640). 

 

Palm oil: RBD palm olein is mainly priced at 6140-6210 yuan/tonne in coastal areas, a partial decline of 40-50 yuan/tonne. (Tianjin traders 6200-6210, down 40; Rizhao traders yet offered; Zhangjiagang traders 6200, flat; Guangzhou traders 6140, down 50; and Xiamen yet offered). 

 

Imported rapeseed oil: Imported rapeseed oil goes up in price, of which it settles up 50-70 yuan/tonne at 8150-8250 yuan/tonne. (Fujian 8170; Guangdong and Guangxi not offered) To safeguard the supply under the epidemic, Guizhou government has programmed to purchase another 80,000 tonnes of rapeseed oil for emergency, and Sichuan also have a plan for the purchase of 21,000 tonnes. But rapeseed stocks only total 290,000 tonnes in east China and 62,000 tonnes in the south, with even less volume available for sales. Moreover, mills now also have low stocks of rapeseed, as there is no sign of a thaw in relations between China and Canada. The nearby contracts for rapeseed oil have almost been sold out, and mills are stalling sales now. This will help prop up the market. However, mills are scooping up on soybeans due to good crush margins on the DCE, and the demand for oils is traditionally slack after the festival, especially now that the catering industry is crippling under the epidemic. And local governments are also implementing policies to push grain and oil enterprises to resume production, so the supply in oil market will again increase in later period. It is predicted that the rapeseed oil market will not go up in a straight line and will fluctuate at the high level, so buyers are suggested not to chase after excessively high prices.  

 

Cottonseed oil: Cottonseed oil is mostly unquoted today and individual prices are down 200 yuan/tonne compared to before Spring Festival. As a result of the pneumonia epidemic, tourism and catering business have been in a huge hurt and universities have delayed the opening. Except that, the amount of packaging also slumps, and demand for cottonseed oil is very limited. In consequence, several oil enterprises lower the price after resuming the quotation. But most oil mills successively delay the operation, limiting the supply and price declines of cottonseed oil. With crush enterprises resuming the operation successively in the late period, cottonseed oil price is likely to go down.