Today (Mar. 9), the market for oilseeds and oils in China is shown as follows:

 

Cottonseed: Cottonseed prices are mostly not offered today, while some offered prices fluctuate by 0.01-0.03 yuan/kg. The novel coronavirus epidemic has resulted in few trading in cottonseed oil. Moreover, oils futures limit down today, so the market is bearish on cottonseed outlook. Besides, traders and Xinjiang oil mills are active in clearing stocks but inland plants are cautious in purchasing cottonseed, depressing cottonseed price. Nevertheless, cottonseed production in 2019 was lower than previous years, supporting cottonseed market temporarily. It is predicted that short-term cottonseed price will fluctuate weakly. 

Summary: The number of confirmed coronavirus cases globally has topped 100,000, as the epidemic spreads to more than one hundred countries and regions. Escalating concerns over a slowdown in global economy has triggered a wave of selling in the commodity and stock markets, coupled with an estimate for bumper harvests in Brazil, US soybeans dropped significantly last Friday and extend losses on Globex today. And after the OPEC and Russia failed to reach an agreement on a reduction in oil supply, Saudi Arabia started an oil price war by slashing its prices by the most in over twenty years; hence, crude oil prices crashed by over 38% from last Friday to today. The three major US stock indices slumped. And oil futures also hit the limit-down level upon opening on Dalian commodity exchanges today. In the spot markets, soybean oil drops by 150-350 yuan/tonne and palm oil mostly down by 210-250 yuan/tonne. As soybean arrivals at domestic ports are smaller in March, soybean crush fell 14% to 1.66 mln tonnes last week. But due to low demand, soybean oil stocks still grew by 4% to 1.40 mln tonnes. And Chinese importers are buying up on Brazilian soybeans in view of handsome crush margins. Moreover, the Chinese government has granted new tariff exemptions on US soybean imports for Chinese crushers with one year-long validity. Besides, Malaysia has seen higher production and lower exports. With these factors coupled with a steep decline in crude oil prices, the oil market is predicted to maintain its weakening trend until a total control of the epidemic. Buyers can wait for the moment. 

Soybean oil: GB Grade I soybean oil is mainly priced at 5400-5550 yuan/tonne in domestic coastal areas, a decline of 150-350 yuan/tonne. (Tianjin traders 5400; Rizhao traders yet offered; Zhangjiagang traders 5550; and Guangzhou traders yet offered). 

Palm oil: RBD palm olein is mainly priced at 4800-4990 yuan/tonne in coastal areas, mostly down by 210-250 yuan/tonne. (Tianjin traders 4990 partially, down 220; Rizhao traders yet offered; Zhangjiagang traders 4950 partially, down 210; Guangzhou traders 4800 partially, down 250, and Xiamen yet offered). 

Imported rapeseed oil: Imported rapeseed oil crashes in price, of which it settles down 240-280 yuan at 7460-7550 yuan/tonne. (Fujian 7790, down 240; Guangdong not offered; and Guangxi not offered) The number of confirmed coronavirus cases globally has topped 100,000, as the epidemic spreads to more than one hundred countries and regions. Escalating concerns over a slowdown in global economy has triggered a wave of selling in the commodity and stock markets, coupled with an estimate for bumper harvests in Brazil, US soybeans dropped significantly last Friday and extend losses on Globex today. And after the OPEC and Russia failed to reach an agreement on a reduction in oil supply, Saudi Arabia started an oil price war by slashing its prices by the most in over twenty years; hence, crude oil prices crashed by over 38% from last Friday to today. The three major US stock indices slumped. And oil futures also hit the limit-down level upon opening on China’s commodity exchanges today. The overall demand for oil products remains extremely dismal, for a majority of catering business are unable to open and all schools have postponed openings under the impact of the epidemic. With thin trading in the market, rapeseed oil stocks rose slightly to 307,000 tonnes in coastal regions and nationwide soybean oil stocks grew  by 4% to 1.39 mln tonnes last week. The overall oil market has come under pressure, and rapeseed oil is also unable to buck the trend. Buyers can stay on the sidelines for the moment. 

Cottonseed oil: Cottonseed oil prices are mostly not available today, while some offered prices decline. Most of catering enterprises have yet to recover, so the demand is always weak in oils market with few new orders in cottonseed oil and stocks in factories increase. Besides, Saudi Arabia ignited an oil price war after Russia not supporting the production cuts proposed by OPEC. In consequence, crude collapsed by more than 38% in last Friday and saw a steep fall in U.S. three major stocks index (DJIA, S&P 500 and NASDAQ). Furthermore, oils on Dalian Commodity Exchange hit the decline limit at the opening of trading today. On the spot market, soybean oil down by 150-350 yuan/tonne and palm oil mostly down by 210-250 yuan/tonne. Therefore, cottonseed oil prices are depressed by these factors and will likely adjust weakly in a short term. Buyers can stay on the sideline.