Today (Apr. 14), the market for oilseeds and oils in China is shown as follows:

 

Imported soybean: The price for Argentine soybean is 4,400 yuan/tonne at port today. Soybeans are in small supply at Shandong ports currently. Domestic soybean prices are swinging at high levels, and some sellers even mingle domestic soybeans with imported soybeans. This continues to bolster the market. However, some traders grow a strong sentiment for making delivery and have fractionally reduced their quotes. Moreover, calculated by current soybean shipments from South America to China, monthly soybean arrivals at ports will average 9.8 mln tonnes from May-July.In a hybrid of the bull and the bear, the market for imported soybeans is predicted to stay stable in the short term.

Cottonseed: Cottonseed prices steadily rise by 0.01-0.03 yuan/kg. There is not much gross cottonseed left in the market. Meanwhile, ranchers are in need of purchasing cottonseed, so the operation rate in oil mills holds a relative high level. As cottonseed is in great demand, the offers are firm. But both of oils and meals futures drop today, so oil mills are cautious in purchasing cottonseed. It is predicted that short-term cottonseed price may move sideways with fluctuations, so buyers can wait and see.

Summary: US soybean fell on Monday amid the spread of the pandemic. And oil futures all declines on the Dalian Commodity Exchange today. In the spot markets, soybean oil goes down 50-110 yuan/tonne and palm oil fluctuates by 10-90 yuan/tonne. Spot trading is forecast to be thin, while there may be some purchases on low-level forward basis. The demand from India and its Ramadan restocking are forecast to further reduce, as the top importing country has extended the nationwide lockdown until May 3 in a bid to contain the continued spread of the coronavirus, Malaysian palm oil futures thus fell. Meantime, Chinese buyers keep purchasing Brazilian soybeans as gross crushing margins still stay high at 255-340 yuan/tonne for April-June delivery, and monthly soybean arrivals at ports will average 9.8 mln tonnes from May-July. Besides, soybean crush will return to a normal level of 1.75 mln tonnes next week. Beside, catering businesses are crippling under the pandemic, and subdued crude oil prices have led to a dim outlook in the demand for vegetable oils. All these bearish factors are crack down on the oil market. Although soybean oil and palm oil keep declining and buyers in Tianjin, eastern China and Guangxi are still waiting for picking up soybean oil, there is no supply problem as mills will recover operation rates next week. Overall, short-term oil market will probably continue o fluctuate to decline, and buyers can wait for the moment.

Soybean oil: GB Grade I soybean oil is mainly priced at 5690-5880 yuan/tonne in domestic coastal areas, a decline of 50-110 yuan/tonne. (Tianjin traders 5750; Rizhao traders 5880; Zhangjiagang traders 5800; and Guangzhou traders 5690). 

Palm oil: RBD palm olein is mainly priced at 4910-5150 yuan/tonne in coastal areas, fluctuating by 10-90 yuan/tonne. (Tianjin traders 5120-5150, up 10; Rizhao traders not available; Zhangjiagang traders 5030, up 40; Guangzhou traders 4910-4920,up 10; and Xiamen not available). 

Imported rapeseed oil: Imported rapeseed oil declines in price today, of which it settles down 90-120 at 7,000-7,080 yuan/tonne. (Fujian 7080, down 110; Guangdong 7000, and Guangxi 7000.) Chinese buyers keep purchasing South American soybeans due to considerable crushing margins, and monthly soybean arrivals at ports will average near 10 mln tonnes from May-July; hence, oil mills will gradually pick up operation rates from the second half of this month, and soybean crush is forecast to return to a normal level of 1.75 mln tonnes next week. Meanwhile, catering businesses are crippling under the pandemic, and subdued crude oil prices have led to a dim outlook in the demand for vegetable oils. Rapeseed oil market thus comes under pressure. Nevertheless, domestic rapeseed crush remains at a low level amid tensions between China and Canada, and soybean oil, palm oil and rapeseed oil stocks are all declining, which help support rapeseed oil market. The overall market is dominated by bearish factors now and will probably follow futures to swing to decline in the short run. Buyers can wait for the moment.

Cottonseed oil: Cottonseed oil keeps steady with partial declines of 30-50 yuan/tonne today. The coronavirus pandemic has hit global demand in catering industry, and gloomy crude oil market has restricted the demand for biofuel. Consequently, oils on DCE drop today, and spot soybean oil down by 50-110 yuan/tonne, which drags down partial cottonseed oil prices to slightly follow the decline. But the supply of cottonseed oil is limited due to its low output, so most of factories have no inventories and the quotation mainly stays stable. Moreover, soyoil mills will recover the operation next week, which will create an increase of soybean oil supply. This may drag down cottonseed oil market to fluctuate to fall back. Buyers can stay on the sideline.