Today (Mar. 25), the market for oilseeds and oils in China is shown as follows:

 

Imported soybean: Argentine soybean is priced at 3,780 yuan/tonne at Shandong port today, a rise of 30 yuan from yesterday. The supply of imported soybeans remains not very much at ports, and soybean prices in domestic production regions keep rising. And the key Brazilian farm town of Canara issued a decree that could disrupt grain export logistics and the operations of global agriculture commodities traders, according to a report by Reuters. The uncertainty in soybean shipments in South America will also help boost imported soybean markets. With a myriad of bullish factors, the market for imported soybeans is predicted to keep firm in the short term.

Cottonseed: Cottonseed prices partly are not available, and some offered prices keep steady with a fluctuation of 0.02-0.5 yuan/kg today. Inland oil mills are wary of purchasing cottonseed due to the high price, so there is not much trading yet. Besides, the price falls slightly from high level but is still strong on account of better outlook, inspiring cottonseed market. Consequently, the price goes up in individual regions and will likely stay strong in a short term.

Summary: The key Brazilian farm town of Canara issued a decree that could disrupt grain export logistics and the operations of global agriculture commodities traders, according to a report by Reuters. Concerns that South American nations might be disrupted in soybean delivery and expectations that the consumption of soybean meal would rise under reducing DDGS supplies continued to pull US soybean futures to close with gains on Tuesday. Oil futures also rise further on the Dalian Commodity Exchange today, but the rise is slowing down. In the spot markets, soybean oil and palm oil both see a partial rise of 20-70 yuan/tonne to attract some low-level purchases. Due to slow soybean shipments in Brazil, soybean arrivals are small in March, and are forecast to be only 6.88 tonnes in April. Mills are likely to keep low operation rates till mid-to-late April for a lack of soybeans, and soybean oil stocks have been declining as the demand for oils is picking up. In addition, Malaysia's Restricted Movement Order to curb the spread of the coronavirus has been extended to April 14, and Sabah said yesterday it would temporarily suspend palm operations partially after seven plantation workers tested positive for the coronavirus, which pulled BMD palm oil futures to move further higher. In the macro terms, after the Federal Reserve announced the open-ended quantitative easing (QE), the market was upbeat that US Congress could reach a $2-trillion Stimulus Deal, which bolstered US stock markets all to soar last night, with Dow Jones jumping record 2100 points. Latest news reported that the $2 Trillion Stimulus Deal has just been reached, and stock markets in China also rise. Short-term oil prices will maintain its strengthening trend in the short term. The major risks in the oil market at present include handsome margins in soybean crush and the fast-spreading pandemic.

Soybean oil: GB Grade I soybean oil is mainly priced at 5670-5750 yuan/tonne in domestic coastal areas, a rise of 20-100 yuan/tonne. (Tianjin traders 5680; Rizhao traders 5680; Zhangjiagang traders 5700; and Guangzhou traders 5670). 

Palm oil: RBD palm olein is mainly priced at 4770-5050 yuan/tonne in coastal areas, a partial rise of 20yuan/tonne. (Tianjin traders 5030-5050, flat; Rizhao traders 5010, up 20; Zhangjiagang traders 4920, up 20; Guangzhou traders 4770, flat, and Xiamen not available). 

Imported rapeseed oil: Imported rapeseed oil rises in price today, of which it settles up 10-30 yuan at 6990-7090 yuan/tonne. (Fujian 7170; not available in Guangdong; and Guangxi 7020) Rapeseed crush remains at a low level due to unsettled issues between China and Canada, and rapeseed oil is in tight supply in spot market. Besides, soybean imports are small both in March and April, so oil mills are keeping low operation rates and soybean oil stocks are on the decline in China. Moreover, the demand for oils is better now as the epidemic is calming down in China. Besides, Malaysia's Restricted Movement Order to curb the spread of the coronavirus has been extended to April 14, and Sabah said yesterday it would temporarily suspend palm operations partially after seven plantation workers tested positive for the coronavirus, which pulled BMD palm oil futures to move further higher. In the macro terms, after the Federal Reserve announced the open-ended quantitative easing (QE), the market was upbeat that US Congress could reach a $2-trillion Stimulus Deal, which bolstered US stock markets all to soar last night, with Dow Jones jumping record 2100 points. Latest news reported that the $2 Trillion Stimulus Deal has just been reached, and stock markets in China also rise. Overall, rapeseed oil spot market is predicted to keep strengthening. Buyers are suggested to make appropriate replenishment and remain cautious in chasing after high prices. 

Cottonseed oil: Cottonseed oil prices are partially not available today. And some prices steadily increase by 50-250 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 rise further today. In the spot market, soybean oil and palm oil partly up by 20-70 yuan/tonne. As cottonseed oil factories remain bullish and are reluctant 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.