Today (Mar. 26), the market for oilseeds and oils in China is shown as follows:

 

 

Imported soybean: Argentine soybean price is still not available at Shandong port today. The supply of imported soybeans remains not very much at ports. And domestic soybean prices continue to maintain the strengthening trend. Meanwhile, more than 70 cities in Argentina are controlling the movement of farm produce in and out of their jurisdictions due to existing uncertainties in the novel coronavirus. The market is concerned about soybean exports in South America, which is good to domestic market. 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 and the higher-end continues falling slightly. But cottonseed price stays at a high level and cottonseed oil keeps rising contributed to their better outlook, inspiring cottonseed market. In individual regions, local gross cottonseed price increases. And short-term cottonseed price is predicted to stay strong.

 

 

Summary: Brazilian farm town Canarana in Mato Grosso state would amend its coronavirus decree to allow global trading companies such as Cargill and Cofco to ship farm produce out of the city in the next ten days, and China was buying up on Brazilian soybeans due to handsome crush margins; hence, US soybean futures closed with losses on last night (Wednesday), and oil futures also swing to decline slightly on the Dalian Commodity Exchange today. In the spot markets, soybean oil falls by 20-80 yuan/tonne and palm oil down by 100 yuan/tonne, and the trading is not as good as yesterday. It takes more time to transport, load and quarantine grains at present, although ports are operating normally in South America. In this case, soybean arrivals at China’s ports are forecast to be only 6.88 mln tonnes, with about 500,000 tonnes postponed. Currently, mills are keeping low operation rates and this situation may extend to mid-to-late April, so soybean oil stocks will continue to fall. In the meantime, Sabah, the largest producer in Malaysia, would temporarily suspend palm operations in three regions. The market is concerned about production, logistics and port shipments in top producing countries. Hence, the oil market is predicted to have little downside space and to maintain its strengthening trend with some fluctuations. But the outside markets are volatile as the epidemic is spreading worldwide, which will add to fluctuations in the oil market. Participants need to keep good balance of buying and selling, and it is suggested to wait for low and stable prices to make appropriate replenishment, but not to chase for excessive rises.

 

Soybean oil: GB Grade I soybean oil is mainly priced at 5650-5750 yuan/tonne in domestic coastal areas, a decline of 30-80 yuan/tonne. (Tianjin traders 5670; Rizhao traders 5700; Zhangjiagang traders 5750; and Guangzhou traders 5650-5670). 

 

Palm oil: RBD palm olein is mainly priced at 4780-5050 yuan/tonne in coastal areas, mostly down by 110-120 yuan/tonne. (Tianjin traders 5030-5050, down 110; Rizhao traders not available; Zhangjiagang traders 4920-4930, down 110; Guangzhou traders 4780,down 120; and Xiamen not available). 

 

Imported rapeseed oil: Imported rapeseed oil declines in price today, of which it settles down 20-30 yuan at 6990-7090 yuan/tonne. (Fujian 7110; not available in Guangdong; and Guangxi 6940) Brazilian farm town Canarana in Mato Grosso state will amend its coronavirus decree to allow global trading companies such as Cargill and Cofco to ship farm produce out of the city. In addition, China is still buying up on South American soybeans due to considerable crush margins. US soybean futures on Wednesday and rapeseed oil futures on Zhengzhou Commodity Exchange today both decline. But 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, March and April soybean arrivals are relatively small, so mills will have to keep low operation rates till mid-to-late April and soybean oil stocks may continue to drop. Add to that, the demand for oils is better now as the epidemic is improving. Therefore, rapeseed oil market may get 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 steadily increase by 50-200 yuan/tonne. Due to the delay of delivery, shipment and quarantine, there are only 6.88 mln tonnes of soybeans arriving at ports in April and about 500,000 tonnes of soybeans delay arrival. Besides, the operation rate in China crushers remains super low, which may last until mid-to-late April. Thus, soybean oil stocks will slide. And cottonseed oil factories bull the oils market outlook, seeing a continuous increase in price. But the demand for cottonseed oil as blending oil is limited after a price hike. Additionally, oils on DCE fluctuate to edge down today. In the spot market, soybean oil down by 20-80 yuan/tonne and palm oil down by 110 yuan/tonne. This may impact the rises of cottonseed oil. Buyers had better not chase up prices too excessively on the correction of bulk oils.