Today (Mar. 12), the market for oilseeds and oils in China is shown as follows:

 

Cottonseed: Cottonseed prices are mostly not offered today, while some offered prices steadily decline by 0.01-0.02 yuan/kg. The novel coronavirus epidemic has resulted in poor market of cotton-by products, so the market is bearish on cottonseed outlook. Besides, inland oil mills are cautious in purchasing cottonseed, depressing cottonseed price. Nevertheless, traders and oil mills are in no hurry to sell cottonseed due to a sharp decline of the price recently. And pastures are in rigid demand, limiting the price declines of cottonseed temporarily. It is predicted that short-term cottonseed price will fluctuate weakly.

Summary: The World Health Organization officially characterized the COVID-19 as a pandemic on Wednesday. With more than 1,200 confirmed cases, the United States announced a 30-day ban on travel from all European countries. And the NBA also declared to postpone its season after a player tested positive for coronavirus. The faint US stock market suffered a heavy loss, crude prices saw a correction, and US soybean futures closed with losses on Wednesday. Oil futures extend sharp losses and even hit the limit-down level on China’s Dalian Commodity Exchange today. In the spot markets, soybean oil declines by 140-200 yuan/tonne and palm oil down 60-160 yuan/tonne, both in lukewarm trading. While soybean crush is falling significantly due to small imports in March, soybean oil stocks remain abundant and the demand for oils is sluggish under the epidemic. Moreover, Chinese importers bought about 17 cargoes of Brazilian soybeans on Tuesday and Wednesday due to considerable crush margins on the DCE, China has granted additional-tariff exemptions for some crushers to import US soybeans; hence, soybean imports are forecast to reach 24.50 mln tonnes from April to June. In this case, mills will also pick up operation rates again. In the meantime, Malaysia’s palm oil exports will remain weak overall in March, but its output will see an increase seasonally. In a myriad of bearish fundamentals, short-term oil market is predicted to maintain its weak trend till an effective control of the epidemic. Buyers can stay on the sidelines for the moment. 

Soybean oil: GB Grade I soybean oil is mainly priced at 5210-5350 yuan/tonne in domestic coastal areas, with a decline of 140-200 yuan/tonne. (Tianjin traders 5210; Rizhao traders 5290; Zhangjiagang traders 5350; and Guangzhou traders 5260). 

Palm oil: RBD palm olein is mainly priced at4660-4930 yuan/tonne in coastal areas, mostly down 60-160yuan/tonne. (Tianjin traders 4930-4950, down 60; Rizhao traders yet offered; Zhangjiagang traders 4800, down 120; Guangzhou traders 4660-4680, down 160, and Xiamen yet offered). 

Imported rapeseed oil: Imported rapeseed oil sharply falls in price, of which it settles down 210-250 yuan at 7200-7420 yuan/tonne. (Fujian, Guangdong and Guangxi not offered) The World Health Organization officially characterized the COVID-19 as a pandemic on Wednesday. With more than 1,200 confirmed cases, the United States announced a 30-day ban on travel from all European countries. And the NBA also declared to postpone its season after a player tested positive for coronavirus. The faint US stock market suffered a heavy loss, crude prices saw a correction, and US soybean futures closed with losses on Wednesday. Oil futures post sharp losses on China’s Dalian Commodity Exchange today. Chinese importers keep purchasing Brazilian soybeans due to handsome crush margins on the DCE. And China has granted additional-tariff exemptions for some crushers to import US soybeans. Therefore, soybean imports are forecast to increase rapidly later. Besides, the demand for oils remains extremely low as catering businesses are unable to resume regular operation under the epidemic. Abundant oil stocks are now weighing on the market. Overall, rapeseed oil market is predicted to maintain a weakening trend till a total control on the epidemic. Buyers can wait for the moment.

Cottonseed oil: Cottonseed oil prices are mostly not available today, while some offered prices keep steady. Some prices further decline by 100 yuan/tonne. There is no significant improvement in cottonseed oil trading, putting mental stress on some oil mills. In consequence, they mostly sell cottonseed oil along with the production, which causes lower transaction prices. Furthermore, oils futures on DCE today fall sharply again and even reach the limit down. On the spot market, soybean oil down by 140-200 yuan/tonne and palm oil down by 60-160 yuan/tonne. Thus, the weak trend of cottonseed oil will not change in a short time. But some oil mills have outstanding contract and would not sell low inventory of spots at a low price, which leads cottonseed oil to be resilient temporarily. Buyers can take a wait-and-see attitude.