Today (Feb. 13), 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 have delayed the production and yet to purchase cottonseed. 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 at risk in dropping. And the outlook of demand for meals is worrisome. Therefore, the price may drop moderately after trading resuming.

 

Oils: 

 

Summary: US soybean futures continued to increase last night. Oil futures extend losses on the Dalian Commodity Exchange today, but they’re narrowing down the losses. In the spot markets, soybean oil drops by 50-70 yuan/tonne and palm oil posts a partial decline of 20-40 yuan/tonne, both in tepid trading. Mills are scooping up on soybeans in Brazil and US PNW while picking up operation rates, but the oil market is in weak trading after the Lunar New Year holidays. The reason is that it will take time to comprehensively control the epidemic, which has heavily blown the catering industry. Data show that the epidemic has resulted in a 100% loss in revenue for 78% of restaurants. In this case, soybean oil stocks will again go higher above 900,000 tonnes, and it is said that several mills have already been with swelling stocks. In addition, BMD palm oil also continues to decline on dismal exports in Malaysia. Short-term oil market is predicted to fluctuate with slight declines, and buyers can wait for low and stable prices to make appropriate replenishment. 

 

Soybean oil: GB Grade I soybean oil is mainly priced at 6180-6500 yuan/tonne in domestic coastal areas, a decline of 50-70 yuan/tonne. (Tianjin traders 6180-6200; Rizhao traders 6390; Zhangjiagang traders 6500; and Guangzhou traders 6340-6370). 

 

Palm oil: RBD palm olein is mainly priced at 5810-5900 yuan/tonne in coastal areas, partially down by 20-40 yuan/tonne. (Tianjin traders 5860-5870, down 20; Rizhao traders yet offered; Zhangjiagang traders 5900, flat; Guangzhou traders 5810-5830, down 40; and Xiamen yet offered). 

 

Imported rapeseed oil: Imported rapeseed oil declines in price, of which it settles down 20-30 yuan/tonne at 8090-8190 yuan/tonne. (Fujian 8090, down 30; Guangdong and Guangxi not offered) It will still take time for China to choke the epidemic, which has heavily hit the catering industry. Data show that the epidemic has caused a 100% loss in revenue in 78% of restaurants. The oil market thus suffers a sharp decline in demand and the trading remains weak since the Lunar New Year holidays. Moreover, mills are actively buying up soybeans due to handsome crush margins, and they are sparing no efforts picking up operation rates in these two weeks. Therefore, the oil market has come under pressure. And mills can only keep low operation rates for rapeseed crush as rapeseed has been in short supply amid tensions between China and Canada. Hence, rapeseed oil prices will probably not drop sharply in tight supplies. Buyers can wait at the moment. 

 

Cottonseed oil: Cottonseed oil is mostly unquoted today and individual prices are flat. The data show that the pneumonia epidemic had caused 78% of catering businesses to lose over 100% of revenues, and oils trading remained depressed after holiday. Even the demand for cottonseed oil is very limited. Consequently, very few deals were clinched on the market. Besides, oils on Dalian Commodity Exchange decline further today. On the spot market, soybean oil down by 50-70 yuan/tonne and partial palm oil drops by 20-40 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. Buyers can take a wait-and-see attitude.