Today (Apr. 15), 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, and domestic soybean prices still posts an uptrend, both of which continue to bolster the market. However, some traders grow a strong sentiment for making delivery to book profit and have fractionally reduced their trading prices. Moreover, Chinese buyers are actively buying Brazilian soybeans, lured by handsome crushing margins. And 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 keep steady with individual rises of 0.02 yuan/kg. There is not much gross cottonseed left in the market. Meanwhile, ranchers are in need of purchasing cottonseed, so traders are in no hurry to run out stocks and the offers are firm. But the trading in cottonseed meal market is gloomy, and cottonseed oil stop rising. Thus, oil mills are cautious in purchasing cottonseed, dragging down cottonseed market. It is predicted that short-term cottonseed price may move sideways with fluctuations, so buyers can wait and see.

 

 

Summary: U.S. soybean futures slid lower on Tuesday, as the number of confirmed cases of COVID-19 in the United States surpassed 600,000 and crude oil prices shed 10.26%. But oil futures snap off the downtrend to rebound on the Dalian Commodity Exchange today. In the spot markets, soybean oil posts a partial rise of 40-70 yuan/tonne and palm oil goes up 20-30 yuan/tonne. Spot trading is forecast to be tepid, while there may be still decent purchases on low-level forward basis. The trading in soybean oil totaled 70,000 tonnes yesterday, of which 67,000 tonnes were on forward basis. The decline in soybean oil and palm oil stocks temporarily limits the decline in oil prices. And buyers in Tianjin, eastern China and Guangxi are still waiting for picking up soybean oil. The oil market thus bounces today. However, Chinese buyers keep purchasing Brazilian soybeans as gross crushing margins still stay high at 255-340 yuan/tonne for April-July 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. Meantime, top importer India have extended its nationwide lockdown until May 3 in a bid to contain the continued spread of the coronavirus, and the pandemic together with weak crude oil prices has also slashed biodiesel consumption in Brazil, the U.S., EU and Indonesia. The implement of Malaysian B20 and Indonesian B30 will face some challenges. Domestic oil futures are predicted to have very little upward potential, in spite of some bounces today. Market participants grow wary of fundamentals and remain cautious about mid-to-long trend. Buyers are suggested to make some replenishment on the dips if out of stock, and remain cautious in chasing after excessive rises. 

 

Soybean oil: GB Grade I soybean oil is mainly priced at 5730-5880 yuan/tonne in domestic coastal areas, a partial rise of 40-70 yuan/tonne. (Tianjin traders 5730; Rizhao traders 5880; Zhangjiagang traders 5850; and Guangzhou traders 5730). 

 

Palm oil: RBD palm olein is mainly priced at 4930-5170 yuan/tonne in coastal areas, up 20-30 yuan/tonne. (Tianjin traders 5150-5170, up 30; Rizhao traders 5160, up 30; Zhangjiagang traders 5030, up 30; Guangzhou traders 4930-4960,up 20; and Xiamen not available). 

 

Imported rapeseed oil: Imported rapeseed oil rises in price today, of which it settles up 10-30 yuan at 7,010-7,110 yuan/tonne. (Fujian 7110, up 30; Guangdong not available, and Guangxi 7010, up 10.) Rapeseed oil is also in tight supplies in China alongside with low rapeseed crush amid tensions between China and Canada, and many mills are still idle for a lack of soybeans at present. Moreover, soybean oil, palm oil and rapeseed oil stocks are all declining due to decent demand for packing oil and bulk oil. Hence, rapeseed oil market is bolstered. However, soybean crushing margins are still considerable, and according to preliminary survey by Cofeed, soybean arrivals at ports are pegged at 9.9 mln, 9.8 mln and 9.6 mln tonnes for May, June and July, respectively. Given this, mills will probably pick up soybean crush to a normal level of 1.75 mln tonnes next week. Meanwhile, the demand for vegetable oils is hugely affected as the pandemic has shaken a punch on global catering businesses, and super-low crude oil prices have also subdued the demand for biofuels, so outside markets are still not stable. Overall, short-term rapeseed oil market is predicted to have limited rebound potential, and its mid-to-long-term trend is also not optimistic. Buyers need to remain cautious in chasing after higher prices. 

 

Cottonseed oil: Cottonseed oil keeps steady with individual declines of 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. Additionally, the operation rate among soybean crushing mills will be back to normal next week. Thus, cottonseed oil market is weighed down by these factors. But the supply of cottonseed oil is limited due to its low output. Moreover, oils on Dalian Commodity Exchange today stop declining and start rebounding. On the spot market, soybean oil partly up by 40-70 yuan/tonne and palm oil up by 20-30 yuan/tonne. These are bullish for cottonseed oil market. It is predicted that short-term cottonseed oil market may mainly fluctuate to adjust.