Today (Feb. 27), the market for oilseeds and oils in China is shown as follows:

 

Cottonseed: Cottonseed is mostly unquoted today, while some prices for Xinjiang cottonseed stay stable. The novel coronavirus pneumonia epidemic has resulted in a sharp decline in cottonseed oil, and cottonseed meal price falls back from high levels. In addition, most oil plants in Xinjiang have not resumed production yet, limiting the trading volume in cottonseed market. Thus, cottonseed market is dragged down. Nevertheless, pastures are in rigid demand, but there is not much cottonseed circulating in the market, which bolsters cottonseed market. Besides, logistics from Xinjiang to inland start recovering. It is predicted that cottonseed market will moderately fall after totally resuming trading. 

Oils: 

Summary: US soybean futures rose last night, as Argentina suspended the export registration of agricultural products with a plan to raise soybean export duties by 3 percentage points to 33%. And on the Dalian Commodity Exchange today, oil futures moderately rebound in early trading, but then fluctuate to fall again. In the spot markets, soybean oil posts a partial decline of 20-90 yuan/tonne and palm oil down by 40-60 yuan/tonne, both in tepid trading. Indonesian government plans to increase palm oil export tax to support the expansion of its biodiesel program which uses palm oil as a feed stock, but concerns over the rapidly-spreading coronavirus have overshadowed this bullish news. The financial and commodity markets are in weak tendency. In addition, soybean crush in China is likely to climb higher to 1.85 mln tonnes this week, and soybean stocks have already increased to 1.20 mln tonnes. However, the demand for oils is quite low as leading catering businesses are unable to open at present. The average daily shipment in soybean oil market is only a little more than 10,000 tonnes, far below a normal level of over 30,000 tonnes. Not a few mills are choking with swelling stocks now. And palm oil stocks are also rising in Southeast countries. Due to the spread of the epidemic globally and the bearish fundamentals, the oil market is forecast to maintain its weakening trend, and it will have little potential even if there is a rebound during this period. Buyers can keep light stockpiles for the moment. 

Soybean oil: GB Grade I soybean oil is mainly priced at 5780-6080 yuan/tonne in domestic coastal areas, a partial decline of 20-90 yuan/tonne. (Tianjin traders 5780-5800; Rizhao traders 5870; Zhangjiagang traders 6080; and Guangzhou traders 5780). 

Palm oil: RBD palm olein is mainly priced at 5200-5400 yuan/tonne in coastal areas, mostly down by 40-60 yuan/tonne. (Tianjin traders 5400, down 40; Rizhao traders yet offered; Zhangjiagang traders 5330-5350, down 50; Guangzhou traders 5200, down 60; and Xiamen yet offered). 

Imported rapeseed oil: Imported rapeseed oil rises in price, of which it settles up 10-20 yuan at 8010-8130 yuan/tonne. (Fujian 8010, up 20; Guangdong and Guangxi not offered) The unsettled issue is hindering rapeseed exports from Canada to China. Chinese mills have low rapeseed stocks for use now, so they have to reduce the crush volume. As a result, they have less spot rapeseed oil for sales, and most of them are mainly carrying out contracts. The tight supply is propping up the market at present. But the demand for edible oils is still extremely dismal, for a majority of catering businesses are unable to operate and all schools have delayed the opening under the influence of the epidemic. Moreover, mills are forecast to pick up soybean crush to a very high level of 1.85 mln tonnes this week, which will bring soybean oil stocks to a higher level. And palm oil stocks are also rising. All these are tempering rapeseed oil prices. Short-term rapeseed oil market is predicted to fluctuate at a high level, and buyers can stay on the sidelines for the moment. 

Cottonseed oil: Cottonseed oil is mostly unquoted today, while some offered prices are flat. Being affected by the pneumonia epidemic, catering enterprises have yet to recover, so the demand is always weak in oils market with few trading in cottonseed oil. Moreover, most enterprises do not offer the price as a result of no deals. Besides, oils on Dalian Commodity Exchange pare gains with fluctuations today. On the spot market, partial soybean oil down by 20-90 yuan/tonne and palm oil down by 40-60 yuan/tonne. Consequently, cottonseed oil prices are depressed by these factors. But the overall operation rate in oil plants stays at a low level now, which leads cottonseed oil to be resilient temporarily. With crush enterprises resuming the operation successively in the late period, cottonseed oil price may be at risk in going down. Buyers can take a wait-and-see attitude.