Today (Feb. 11), 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 applied 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 edged higher last night for a sixth session in row, but oil futures moderately decline on the Dalian Commodity Exchange today. In the spot markets, soybean oil goes down by 30-60 yuan/tonne, and palm oil fluctuates partially by 20-40 yuan/tonne, both in tepid trading. There are several factors weighing down the oil market. The catering industry is heavily blown by the epidemic. Chinese importers keep scooping up on Brazilian soybeans, and mills will quickly pick up operation rates due to good crush margins. And according to a report, Malaysian palm oil exports decline and stocks mount higher than the expected. However, oils stocks are still low at present. Rapeseed oil futures are strong now, which is also bullish to the oil market. In the short term, oil market will have limited space for declines and will follow futures to fluctuate frequently. In view of subdued demand under the epidemic, soybean oil stocks is also set to rise with light trading after the festival, so buyers need to be cautious in chasing after high prices. 

 

Soybean oil: GB Grade I soybean oil is mainly priced at 6400-6660 yuan/tonne in domestic coastal areas, down by 30-60 yuan/tonne. (Tianjin traders 6400-6420; Rizhao traders 6550; Zhangjiagang traders 6660; and Guangzhou traders 6570-6590). 

 

Palm oil: RBD palm olein is mainly priced at 6080-6150 yuan/tonne in coastal areas, partially fluctuating by 20-40 yuan/tonne. (Tianjin traders 6100-6110, down 40; Rizhao traders yet offered; Zhangjiagang traders 6150, flat; Guangzhou traders 6080, up 20; and Xiamen yet offered). 

 

Imported rapeseed oil: Imported rapeseed oil goes up in price, of which it settles up 30-50 yuan/tonne at 8230-8350 yuan/tonne (Fujian 8230; Guangdong and Guangxi not offered). Rapeseed oil is now quoted at 05+500/600 (or 8240 yuan/tonne) in Guangxi, and it is hard to find a truck with the price of 400 yuan/tonne under the influence of the epidemic, so the bidding price is not attractive enough. In addition, rapeseed crush stays at a low level amid a stalemate between China and Canada. And mills in Guangdong and Guangxi are just carrying out contracts signed previously, as they have very little supply available for nearby contracts. But the catering industry is still crippling under the epidemic, and the trading is quite light in the spot oil market, so rapeseed oil prices will not go up in a straight line and may fluctuate to adjust after this round of rises, so buyers can wait at the moment. 

 

Cottonseed oil: Cottonseed oil is mostly unquoted today and individual prices are flat. 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. Besides, oils on Dalian Commodity Exchange moderately fall back today, and spot soybean oil declines by 30-60 yuan/tonne. Hence, cottonseed oil market is dragged down by all these factors. But most oil mills continue delaying the operation, limiting the supply of cottonseed oil. Accordingly, cottonseed oil market also will be bolstered temporarily. With crush enterprises resuming the operation successively in the late period, cottonseed oil price may be at risk in dropping.