Today (Mar. 3), the market for oilseeds and oils in China is shown as follows:

 

Cottonseed: Cottonseed is mostly unquoted today, while some offered prices steadily fluctuate by 0.02-0.1 yuan/kg. The novel coronavirus pneumonia epidemic has resulted in a sharp decline in cottonseed oil. 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, supporting cottonseed market temporarily. Moreover, logistics from Xinjiang to inland gradually recover. It is predicted that cottonseed market will moderately fall after totally resuming trading. 

Summary: US soybean futures rose last night on good export data and technical bounces. And on the Dalian Commodity Exchange today, oil futures were sharply higher in early trading, but due to a lack of buying, the futures then snap off the upward trend to fluctuate to move lower. In the spot markets, soybean oil partially fluctuates by 30-70 yuan/tonne, and palm oil down by 30-60 yuan/tonne, both in lukewarm trading. Last week, as soybean crush jumped by 6.5% to a very high level of 1.92 mln tonnes, and due to lower demand for edible oils when catering business had not recovered, soybean oil stocks rose further by 12% to 1.34 mln tonnes. And some mills now are facing swelling stocks. Meanwhile, gross crush margins for Brazilian soybeans on the DCE stay high at 200-279 yuan/tonne, so Chinese mills are purchasing soybeans from South America. In conclusion, the novel coronavirus epidemic is at times a threat to the commodity market, so the oil market is predicted to be little changed in its weakening trend. Participants are suggested to remain cautious for the moment. 

Soybean oil: GB Grade I soybean oil is mainly priced at 5600-5800 yuan/tonne in domestic coastal areas, partially fluctuating by 20-70 yuan/tonne. (Tianjin traders 5610-5630; Rizhao traders 5690; Zhangjiagang traders 5800; and Guangzhou traders 5600-5610). 

Palm oil: RBD palm olein is mainly priced at 4950-5270 yuan/tonne in coastal areas, down by 30-60 yuan/tonne. (Tianjin traders 5150, down 30; Rizhao traders 5270, down 60; Zhangjiagang traders 5130; Guangzhou traders 4950, down 30; and Xiamen yet offered). 

Imported rapeseed oil: Imported rapeseed oil is stable in price, of which it settles at 7800-7980 yuan/tonne. (Fujian 7800; Guangdong not offered; and Guangxi not offered) A talk between China and Canada was delayed by the spreading coronavirus, so Chinese oil mills now keep rapeseed crush at a low level. And spot rapeseed oil has been in tight supply, so mills are mostly signing April contracts, which helps support the market. However, a majority of catering businesses are unable to open under the epidemic, so the demand for edible oil is incredibly low. In this case, soybean oil, palm oil and rapeseed oil all see higher stocks, especially soybean oil with a sharp increase. In addition, due to handsome crush margins on the DCE, Chinese oil mills are buying up on soybeans in South America. Besides, soybean imports from the US are also forecast to pick up. As soybean oil and palm oil are in a weakening pattern, rapeseed oil market is also unable to buck the trend. Buyers can wait for the moment. 

Cottonseed oil: Cottonseed oil is mostly unquoted today, while some offered prices decline by 300 yuan/tonne. 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. In consequence, the stocks in factories increase and cottonseed oil prices are depressed. Moreover, most enterprises do not offer the price as a result of no deals. 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.