Today (Mar. 24), the market for oilseeds and oils in China is shown as follows:

 

Imported soybean: Argentine soybean is priced at 3,750 yuan/tonne at Shandong port today. The supply of imported soybeans remains not very much at ports, and soybean prices in domestic production regions keep rising, which help support the market for imported soybeans. However, Argentina has announced that all ports are operating normally, and trucks are allowed to enter Rosario port now. And workers at Brazil’s Santos port also called off the strike vote. Hence, soybean shipment are in a normal state in South America. Overall, the market for imported soybeans is predicted to keep firm in the short term.

Cottonseed: Cottonseed prices increase by 0.02-0.17 yuan/kg today. The prices of cottonseed oil and cottonseed meal go up as the market picks up, inspiring cottonseed market. And pastures are in rigid demand, so cottonseed traders push price higher amid a market speculation atmosphere. Due to the pricey cottonseed, inland oil mills mainly purchase on a hand-to-mouth basis, so there is not much trading yet. It is predicted that short-term cottonseed price will keep fluctuating to rally.

Summary: US soymeal moved on a strengthening trend on lower DDGS supplies after mills cut down ethanol production due to crashing crude oil prices, pulling US soybean futures to surge in its wake on Monday. Oil futures are all shooting higher on the Dalian Commodity Exchange today on strong trading, lower operation rates and declining stocks. In the spot markets, soybean oil follows to increase by 60-90 yuan/tonne and palm oil up 80-150 yuan/tonne, and the trading is not strong for the moment due to rising prices. The demand for oils is turning better obviously as the coronavirus outbreak is calming down in China, of which soybean oil was trading very strong for a fourth-consecutive day yesterday. Meanwhile, due to slow shipment in Brazil, China’s soybean imports are small both March and April. In this case, mills have to reduce operation rates, and soybean oil stocks also declined by 5% to 1.32 mln tonnes in the week as of March 20. Hence, oil market is driven to go strengthening. However, Argentina has announced that all ports are operating normally, and trucks are allowed to enter Rosario port now. And workers at Brazil’s Santos port also called off the strike vote. In addition, crush margins for South American soybeans are very decent. Meanwhile, palm oil exports are weak in Malaysia and crude oil prices have not hit the bottom, in addition to concerns over global economy, so DCE oil futures are narrowing gains after rushing high in early trading. It is still necessary to avoid risks of frequent fluctuations, and buyers are suggested not to chase after excessively high prices. 

Soybean oil: GB Grade I soybean oil is mainly priced at 5590-5650 yuan/tonne in domestic coastal areas, a rise of 60-90 yuan/tonne. (Tianjin traders 5590; Rizhao traders 5650; Zhangjiagang traders 5650; and Guangzhou traders 5600-5610). 

Palm oil: RBD palm olein is mainly priced at 4670-4950 yuan/tonne in coastal areas, up by 80-150 yuan/tonne. (Tianjin traders 4940-4950, up 80; Rizhao traders 4890, up 130; Zhangjiagang traders 4850, up 150; Guangzhou traders 4670, up 120, and Xiamen not available). 

Imported rapeseed oil: Imported rapeseed oil declines in price today, of which it settles down 10-20 yuan at 7040-7180 yuan/tonne. (Fujian 7100; not available in Guangdong and Guangxi)Chinese importers are attracted to make purchases by handsome crush margins for South American soybeans, so soybean imports will surge from May, which makes rapeseed oil prices unable to maintain sharp rises and turn to fluctuate today. But 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, soybean imports are small this month, so that many mills are idled and soybean oil stocks have been falling for two weeks. Moreover, the demand for oils is turning quite better as catering businesses are resuming work. These may help rapeseed oil market remain resilient. Buyers can wait for low and stable prices to make appropriate replenishment. 

Cottonseed oil: Cottonseed oil prices are partially not available today. And some prices increase by 100-200 yuan/tonne. The trading volume of bulk oils in China keeps extending, seeing a continuous decline of operation rate and inventory. Besides, oils on DCE today successively rise today. In the spot market, soybean oil up by 60-90 yuan/tonne and palm oil up 80-150 yuan/tonne. As cottonseed oil factories remain bullish and are in no hurry to clear out goods, the prices continue rising. But the demand for cottonseed oil as blending oil is limited after a price hike. It is expected that short-term cottonseed oil market will be strong.