Today (Apr. 2), the market for oilseeds and oils in China is shown as follows:

 

Imported soybean: The price for Argentine soybean is still not available at port today. As port soybeans are not in huge supplies at present and domestic soybean prices also keep rising, participants in the distributing soybeans have a strong sentiment for higher prices. In addition, there are concerns over soybean delivery and shipments from South American producers. These are all bullish to the market for imported soybeans. However, Chinese importers have bought a total of 52 soybean cargoes from Brazil and PNW both this week and last week due to decent crush margins, and soybean imports may reach 8.9 mln tonnes in May; hence, the market is still curbed. Dominated by bullish factors, the market for imported soybeans is predicted to keep firm in the short term.

Cottonseed: Cottonseed prices keep steady with individual declines of 0.04 yuan/kg today. Oils and meals futures continue dropping today, dragging down the turnover of cottonseed oil and cottonseed meal. As some oil plants stop purchasing cottonseed, there is not much trading volume in the market, depressing cottonseed price. But cottonseed traders keep propping up price in the rigid demand from pastures. It is expected that short-term cottonseed price will fluctuate at a narrow range.

Summary: U.S. soybean futures fell in the wake of a sinking stock market on Wednesday. Investors in the financial markets dumped their holdings on the news that U.S. President Donald Trump would extend coronavirus emergency measures through the end of April after confirmed cases had exceeded 200,000 in this country. In addition, a majority of countries across the world had declared a lockdown measure, which forced restaurants to shut. Oil futures further decline on the Dalian Commodity Exchange (DCE) today, but the decline is narrowed down. In the spot markets, soybean oil drops by 10-60 yuan/tonne and palm oil partially fluctuates by 10-20 yuan/tonne, and the trading is strong at low-level basis. Oil market declines, dragged down by the report that China would resume Canadian canola imports. Moreover, gross crush margins for South American soybeans still stay high at 252-325 yuan/tonne for April-July shipments, and Chinese importers have bought a total of 52 soybean cargoes from Brazil and PNW. Besides, catering businesses are crippling globally amid the COVID-19, and the demand for biofuels is also affected by weak crude oil prices. Hence, oil market has come under pressure. However, mills will keep low operation rates in the next two weeks due to soybean shortages, but the demand for oils is very much better than previously. Soybean oil was trading at 63,000 tonnes yesterday. Soybean oil and palm oil stocks keep decreasing in recent few weeks, and people are even lining up to take delivery at ports. There are still concerns about commodity imports due to the spread of the novel coronavirus, which will help limit the downside space. In a hybrid of the bull and the bear, the oil market is forecast to continue its frequent fluctuations in the near term, and buyers can wait for low-level basis to make appropriate replenishment.

Soybean oil: GB Grade I soybean oil is mainly priced at 5480-5630 yuan/tonne in domestic coastal areas, a decline of 10-60 yuan/tonne. (Tianjin traders 5570; Rizhao traders 5630; Zhangjiagang traders 5580; and Guangzhou traders 5480-5500). 

Palm oil: RBD palm olein is mainly priced at 4930-5120元yuan/tonne in coastal areas, partially fluctuating by 10-20 yuan/tonne. (Tianjin traders 5100, flat; Rizhao traders 5120, flat; Zhangjiagang traders 5030-5040, flat; Guangzhou traders 4930, up 10; and Xiamen 5200, flat). 

Imported rapeseed oil: Imported rapeseed oil edges down in price today, of which it settles down 10-20 yuan at 6840-7120 yuan/tonne. (Fujian 6990; Guangdong not available; and Guangxi 6840) DCE crush margins for soybeans are considerable, which attracts Chinese importers to make purchases. Brazil’s soybean shipments to China hit a record high of 9.9 mln tonnes in March, and for this, soybean arrivals at ports may reach 8.9 mln tonnes in May. Meanwhile, catering businesses have been crippling under the fast-spreading pandemic. And it is reported that China has agreed to resume Canadian canola imports. Therefore, rapeseed oil market is under pressure. Merely, rapeseed mills in China are keeping low operation rates, and spot rapeseed oil is in tight supplies. Besides, soybean mills will also lower down operation rate in the coming two weeks for a lack of soybeans. Moreover, the demand for oils has been better recently, as foodservices are resuming operations and schools will gradually open across China this month. In addition, China has required that foreign materials in Canadian canola shipments must be below 1%, a level that very few Canadian exporters can meet at present, so everything remains to be seen. Rapeseed oil prices are slowing down declines today after a sharp drop yesterday, and buyers are suggested to wait for low and stable prices to make replenishment in small batch.

Cottonseed oil: Cottonseed oil prices are stable today. Catering businesses resume the services in succession and schools are about to reopen. Due to the good demand for oils at the low base, the inventories of soybean oil and palm oil keep declining. Furthermore, the cottonseed oil market is bolstered as cost remains high. Besides, the number of COVID-19 infections in U.S. had exceeded 200,000, and there happened a huge sell-off in the financial market after President Donald Trump extending the emergency quarantine until the end of April. Moreover, countries around the world take lockdown measures and shut down the restaurants. In this case, U.S. soybean collapsed overnight. Oils on Dalian Commodity Exchange are still on the decline today and spot soybean oil down by 10-60 yuan/tonne, weighing down cottonseed oil trading to drop. Therefore, cottonseed oil market is predicted to move sideways with fluctuations in the near term. Buyers can take a hand-to-mouth buying.