Today (Mar. 2), the market for oilseeds and oils in China is shown as follows:

 

Cottonseed: Cottonseed is mostly unquoted today, while some offered prices decline by 0.05 yuan/kg. And a minority of traders revive its offer. The novel coronavirus pneumonia epidemic has resulted in a sharp decline in cottonseed oil, and cottonseed meal price falls back from high levels. As the market is bearish on cottonseed outlook, some factories are active in clearing stocks, which depresses cottonseed price. Nevertheless, pastures are in rigid demand. Besides, cottonseed production in 2019 was lower than previous years, limiting price declines temporarily. But staple oils slump, and logistics from Xinjiang to inland gradually recover. It is predicted that cottonseed market will moderately fall after totally resuming trading. 

Oils: 

Summary: The stock market and energy futures extended the steep declines, as the rapidly-spreading epidemic stoked concerns about the global economic recession, and due to a forecast for a bumper soybean harvest in Brazil, soybean futures fell last Friday. Oil futures also continue to fall but stay above the previous close on the Dalian Commodity Exchange today. In the spot markets, soybean oil prices post a partial decline of 100-150 yuan/tonne and some that fell sharply last Friday rebound by 30-90 yuan/tonne, and palm oil fluctuates by 30-100 yuan/tonne. The overall trading is lukewarm with some low-level purchases. Downstream buyers have quickened the delivery, but it is still far below the normal level. And last week, soybean crush rose by 6.5% to a very high level of 1.92 mln tonnes, so soybean oil stocks also increased further by 12% to 1.34 mln tonnes. And some mills now have swelling soybean oil stocks. Meanwhile, palm oil has seen higher output and lower exports in Malaysia, of which its exports post a month-on-month decline of 13% and its stocks will also go rebuilding. Weighed on by bearish fundamentals and concerns over the spreading epidemic, short-term oil market is predicted to have little potential for rebounds and may maintain its weakening trend amid the epidemic. Buyers can keep light stocks for the moment. 

Soybean oil: GB Grade I soybean oil is mainly priced at 5640-5870 yuan/tonne in domestic coastal areas, mostly down by 100-150 yuan/tonne and with a partial rise of 30-90 yuan/tonne at ports. (Tianjin traders 5690; Rizhao traders 5650; Zhangjiagang traders 5870; and Guangzhou traders 5640). 

Palm oil: RBD palm olein is mainly priced at 5000-5200 yuan/tonne in coastal areas, fluctuating by 30-100 yuan/tonne. (Tianjin traders 5200, up 70; Rizhao traders 5330, down 30; Zhangjiagang traders 5150, up 100; Guangzhou traders 5000, up 100; and Xiamen yet offered). 

Imported rapeseed oil: Imported rapeseed oil declines in price, of which it settles down 10-30 yuan at 7830-7990 yuan/tonne. (Fujian 7830; Guangdong not offered; and Guangxi 7860) The demand for oil products remains extremely weak and the trading is thin in the market, as a majority of catering businesses have not opened and schools have also postponed the opening under the epidemic. Last week, rapeseed oil stocks rose by 1.5% to 304,000 tonnes, and soybean oil stocks also increased by 12% to 1.34 mln tonnes as soybean crush went up to 1.92 mln tonnes; hence, the oil market has come under pressure. But the unsettled issue is hindering rapeseed exports from Canada to China, so Chinese mills have low rapeseed stocks and keep low operation rates at present. And spot rapeseed oil is in tight supply, which makes it more resilient than other oil products. Rapeseed oil will be hard to immune from the overall bearish market, and will keep a relatively weak trend. 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 new orders in cottonseed oil. Moreover, most enterprises do not offer the price as a result of no deals. Moreover, oils futures on Dalian Commodity Exchange drop further today, and spot soybean oil partly down by 100-150 yuan/tonne. Consequently, cottonseed oil prices are depressed by these factors. But the overall operating rate in oil plants is not high now and many oils mills in Xinjiang have outstanding contracts, which lead 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.