Today (Mar. 17), the market for oilseeds and oils in China is shown as follows:

 

Imported soybean: Argentine soybean is priced steadily at 3700-3720 yuan/tonne at Shandong port today. Imported soybean supply is low at ports currently. Meanwhile, as state-level grain depots in Bei’an, Dunhua and Dayangshu have offered a high price of 4.20 yuan/kg to purchase soybeans, domestic soybean prices keep firm and stay at a high level. In this case, some buyers start to return to Argentine market. There is demand in the market now. All these are propping up the market. However, all agencies have increased their estimates for Brazilian soybeans, a sign that local farmers will harvest massive crops, which is still a constraint to domestic market. Overall, the market for imported soybeans is predicted to keep steady in the short term.

Cottonseed: Cottonseed prices are mostly not available today, while some offered prices fluctuate by 0.02 yuan/kg. Traders and oil mills are wary of selling cottonseed due to a sharp decline of the price some time ago, so there is not much cottonseed circulating in the market. And pastures are in rigid demand, which leads some traders to tend to raise price. Besides, the freight from Xinjiang to inland rises slightly owing to a shortage of vehicles. However, the market outlook of cotton-by products is poor. In order to avoid risk, inland oil mills mainly purchase on a hand-to-mouth basis, depressing some cottonseed prices. It is predicted that short-term cottonseed price will move sideways with fluctuations.

Oils: 

Summary: US stock market hit the circuit breaker on Monday for a third time in the past two weeks amid fast-spread novel coronavirus pandemic. Crude oil crashed by 9.6%, and US soybean also saw steep losses last night. Oil futures extend losses on the Dalian Commodity Exchange today, but the losses are smaller, as the demand for oils is getting better and there is a decline in soybean crush, soybean oil stocks and palm oil stocks. In the spot markets, soybean oil partially fluctuate by 10-70 yuan/tonne and palm oil goes up by 30-50 yuan/tonne to attract some low-level purchases. Work resumption has been 90% in China outside Hubei Province, according to the National Development and Reform Commission. The demand for oils is better than before, of which soybean oil saw the trading over 20,000 tonnes yesterday. As soybean imports are relatively small in March, soybean stocks in coastal mills now only total 2.35 mln tonnes, a decline of 18% from the previous week and of 39% from a year earlier. Soybean crush have been falling in the past weeks, and soybean oil stocks also follow to drop by 0.5% to 1.392 mln tonnes. And palm oil stocks have also decreased by 5.7% to 846,600 tonnes. Oil mills are propping up prices in view of better fundamentals. Still, soybean oil stocks are abundant. Besides, crush margins have further grown to 321-378 yuan/tonne for March-July Brazilian soybeans, which attracted Chinese buyers to order 35 cargoes of Brazilian soybeans last week. And China has granted additional-tariff exemptions for some crushers to import US soybeans, so that importers have also returned to the US markets. Hence, there is still pressure in the oil market. The macro factors are still volatile due to the spread of novel coronavirus pandemic, so the oil market will have limited potential for bounces. Buyers are suggested to replenish appropriately on the dips, remain cautious in chasing after high prices, and beware of capricious fluctuations.

Soybean oil: GB Grade I soybean oil is mainly priced at 5310-5350 yuan/tonne in domestic coastal areas, fluctuating by 10-70 yuan/tonne. (Tianjin traders 5310-5330; Rizhao traders 5290; Zhangjiagang traders 5320; and Guangzhou traders 5330-5350). 

Palm oil: RBD palm olein is mainly priced at 4610-4850 yuan/tonne in coastal areas, up 30-50 yuan/tonne. (Tianjin traders 4850, up 30; Rizhao traders 4820, up 30; Zhangjiagang traders 4750, up 50; Guangzhou traders 4610-4620, up 30, and Xiamen yet offered). 

Imported rapeseed oil: Imported rapeseed oil declines in price today, of which it settles down 20-40 yuan at 7070-7280 yuan/tonne. (not available in Fujian, Guangdong and Guangxi) Chinese importers are lured to buy up on Brazilian soybeans by handsome margins, and China has granted additional-tariff exemptions for some crushers to import US soybeans. Moreover, there is still a myriad of bearish fundamentals in the oil market. Therefore, rapeseed oil market is predicted to maintain its weakening trend amid the spread of the virus. Nevertheless, the consumption of oils is picking up, as over 90% factories have resumed work and catering businesses have also resumed operations. Hence, the oil market may gradually get resilient. Buyers can wait for low and stable prices to make small replenishment.

Cottonseed: Cottonseed prices are mostly not available today, while some offered prices fluctuate by 0.02 yuan/kg. Traders and oil mills are wary of selling cottonseed due to a sharp decline of the price some time ago, so there is not much cottonseed circulating in the market. And pastures are in rigid demand, which leads some traders to tend to raise price. Besides, the freight from Xinjiang to inland rises slightly owing to a shortage of vehicles. However, the market outlook of cotton-by products is poor. In order to avoid risk, inland oil mills mainly purchase on a hand-to-mouth basis, depressing some cottonseed prices. It is predicted that short-term cottonseed price will move sideways with fluctuations.