Today (Mar. 20), the market for oilseeds and oils in China is shown as follows:
Oilseeds:
Imported soybean: Argentine soybean is priced at 3700 yuan/tonne at Shandong port today. Soybeans are in small supply at ports currently, and domestic soybean prices are strengthening. In addition, the market is concerned that soybean shipments in Argentina and Brazil may be disrupted by the coronavirus pandemic. These help support the market for imported soybeans now. Nevertheless, China has bought a total of 35-40 cargoes of South American soybeans this week, including 4-5 cargoes from Brazil yesterday. Meanwhile, Santos port, a main port handling exports in Brazil, is operating normally. Therefore, domestic port traders are still staying on the sidelines. Overall, the market for imported soybeans is predicted to keep steady in the short term.
Cottonseed: Cottonseed prices keep steady with some declines of 0.02 yuan/kg. In order to avoid risk, inland oil mills mainly purchase on a hand-to-mouth basis, so the poor demand drags down cottonseed market. But traders and oil mills are wary of clearing out stocks, and they won’t sell cottonseed at a low price. And pastures are in rigid demand. Moreover, oils and meals futures rise today. Thus, cottonseed market is bolstered by these factors. It is predicted that short-term cottonseed price will fluctuate to adjust.
Oils:
Summary: US soybean futures ended sharply higher on Thursday, supported by a pick-up in exports, technical buying and a rise in crude price. In addition to that, Timbues, a key port town in northern Rosario, Argentina's main grains export hub, posted an order on the government website that it would suspend port activities as part of efforts to contain the spread of the coronavirus. The suspension was reported to last till April 2nd. And on the Dalian Commodity Exchange today, soybean oil futures move higher, but palm oil futures swing to decline due to a fall in Malaysia’s palm oil exports. In the spot markets, soybean oil increases by 10-120 yuan/tonne, but palm oil drops by 10-30 yuan/tonne. DCE futures are narrowing down gains, so buyers are cautious now and the trading is predicted to be not as good as yesterday. As soybean imports are small in March and may also be lower than forecast in April, mills are keeping low operation rates and soybean oil stocks are declining. In the meantime, the demand for oils from the catering industry is picking up, so that both trading and delivery in the oil market are in a pleasant scene. Soybean oil continued to trade high at 45,000 tonnes yesterday. These bolster the oil market to maintain its strengthening trend. But crush margins for Brazilian soybeans still stay high at 290-323 yuan/tonne, so Chinese importers have been attracted to buy a total of 35-40 cargoes of Brazilian soybeans this week. Besides, Malaysia’s palm oil exports fell by 21% month on month in the first 20 days of March. And global financial markets are volatile due to the fast-spreading coronavirus across the globe. Therefore, it is still necessary to avoid risks of frequent fluctuations in the oil market, although there are some corrections. Buyers with adequate stocks can stay on the sidelines for the moment.
Soybean oil: GB Grade I soybean oil is mainly priced at 5450-5550 yuan/tonne in domestic coastal areas, a rise of 10-120 yuan/tonne. (Tianjin traders 5450-5470; Rizhao traders 5550; Zhangjiagang traders 5530; and Guangzhou traders 5470-5480).
Palm oil: RBD palm olein is mainly priced at 4640-4910 yuan/tonne in coastal areas, down by 10-30 yuan/tonne. (Tianjin traders 4910,down 10; Rizhao traders 4830-4840, down 20; Zhangjiagang traders 4760, down 30; Guangzhou traders 4640-4650,down 20, and Xiamen yet offered).
Imported rapeseed oil: Imported rapeseed oil rises in price today, of which it settles up 50-70 yuan at 7070-7190 yuan/tonne. (not available in Fujian, Guangdong and Guangxi) Rapeseed crush stays at a low level amid a stalemate in relations between China and Canada, and rapeseed oil is also in tight supply in spot market. Besides, mills are in downtime broadly as soybean imports are small this month, so soybean oil stocks are declining in China. Moreover, the demand for oils is better now with gradually normal operations in the catering industry. However, China has bought nearly 40 cargoes of South American soybeans this week, lured by considerable crush margins and as soybean shipments in Brazil are not disrupted by the coronavirus. Overall, rapeseed oil market is predicted to follow futures to swing frequently till there is a control of the virus. Buyers are suggested to keep light stockpiles.
Cottonseed oil: Cottonseed oil prices keep steady with partial rises of 50-200 yuan/tonne. Some mills have outstanding contract. And soybean oil on DCE rises today, with an increase of 10-120 yuan/tonne on the spot market. Meanwhile, there are more inquiries in cottonseed oil market today. Thus, partial cottonseed oil prices are boosted by these factors. But the demand for cottonseed oil as blending oil is limited, and there is no substantial improvement in trading, restricting the price rises. It is expected that short-term cottonseed oil market will stay strong with fluctuations.
(USD $1=CNY ￥7.11)
