Today (Mar. 19), the market for oilseeds and oils in China is shown as follows:

 

 

Imported soybean: Argentine soybean is priced at 3700 yuan/tonne at Shandong port today. Imported soybean supply is low at ports currently. Meanwhile, domestic soybean prices also move higher. Both these are propping up the market. However, soybean harvests are at full swing in Brazil, and Santos port also remains its normal operations in spite of the spread of the coronavirus in the country. Besides, China bought 4-5 cargoes of Brazilian soybeans yesterday after 15 cargoes on Tuesday. Overall, the market for imported soybeans is predicted to keep steady in the short term.

 

Cottonseed: Cottonseed prices keep steady with some fluctuations of 0.02 yuan/kg. Traders and oil mills are wary of selling cottonseed, so there is little cottonseed circulating in the market. And pastures are in rigid demand, so some traders would not sell cottonseed at a low price. Thus, cottonseed market is bolstered. In order to avoid risk, inland oil mills mainly purchase on a hand-to-mouth basis, dragging down cottonseed market. It is predicted that short-term cottonseed price will fluctuate to adjust.

 

 

Summary: US soybean and soymeal made increases on Wednesday, bolstered by a possibility that farmers would use soybean meal to replace DDGS as ethanol mills slowed down operations, but US soyoil declined as investors were buyers of meal futures. And on the Dalian Commodity Exchange (DCE) today, soybean oil swings slightly and palm oil futures fall significantly. The spot markets are more stronger, with soybean oil fluctuating partially by 10-80 yuan/tonne and palm oil fluctuating by 10 yuan/tonne. Soybean oil market traded 65,400 tonnes yesterday, as the demand is better when catering businesses are resuming operations. Meanwhile, soybean imports are small in March and may be lower than forecast in April, and many mills now are in downtime for soybean shortages. Soybean oil stocks reduce with low-level operation rates, and palm oil stockpiles are also declining. Therefore, mills are supporting prices. Brazil’s Santos port also remains its normal operations in spite of the spread of the coronavirus in the country, and Chinese importers are lured to buy up on Brazilian soybeans due to a high crush margin of 307-382 yuan/tonne on the DCE. Meanwhile, financial markets are blown severely by concerns over a slowdown in global economy as the novel coronavirus is spreading rapidly across the globe. US stock market hit the circuit breaker for four times in two weeks, and crude prices plunged to their lowest levels in 18 years as governments tightened travel restrictions across the world. The rises in oil market is constrained by crippling outside markets, and the market is predicted to follow futures to go volatile in the near term in myriad of breaking news. Buyers are suggested to make appropriate replenishment on the dips and remain cautious in chasing after high prices. 

 

Soybean oil: GB Grade I soybean oil is mainly priced at 5350-5430 yuan/tonne in domestic coastal areas, partially fluctuating by 10-80 yuan/tonne. (Tianjin traders 5400-5420; Rizhao traders 5350; Zhangjiagang traders 5430; and Guangzhou traders 5410-5420). 

 

Palm oil: RBD palm olein is mainly priced at 4670-4930 yuan/tonne in coastal areas, fluctuating by 10 yuan/tonne. (Tianjin traders 4930,up 10; Rizhao traders 4850, down 10; Zhangjiagang traders 4800-4810, up 10; Guangzhou traders 4670,up 10, and Xiamen yet offered). 

 

Imported rapeseed oil: Imported rapeseed oil declines in price today, of which it settles down 100-150 yuan at 6950-7140 yuan/tonne. (not available in Fujian, Guangdong and Guangxi) Chinese buyers are scooping up on Brazilian soybeans due to handsome crush margins, and more US soybeans will likely go into Chinese markets. Albeit the spread of the novel coronavirus, soybean loading/unloading remains normal at all ports in Brazil, so do for railways and trucks. Therefore, rapeseed oil market drops under pressure. But as there is no sign of a thaw between China and Canada, mils now have low rapeseed stocks and spot rapeseed oil supply is also tight. Besides, soybean imports are small this month, and many mills have gone into suspensions, so soybean crush will be low in these two weeks. While soybean oil stocks are declining, the demand for oils are getting better as catering businesses resume work. Rapeseed oil prices may gradually become resilient, and buyers can wait for low and stable prices to make some replenishment. 

 

Cottonseed oil: Cottonseed oil prices are mostly not available today, while some offered prices steadily fluctuate by 100-200 yuan/tonne. The overall operation rate in cottonseed oil mills is not high, and some mills have outstanding contract. As catering businesses is gradually recovering, the demand for oils picks up. Moreover, spot soybean oil stages strongly as a whole, which pulls price up in several regions from a low level. But there is no substantial improvement in cottonseed oil trading, and the price still falls in some regions. It is expected that short-term cottonseed oil price will move sideways with fluctuations.