Today (Apr. 21), the market for oilseeds and oils in China is shown as follows:

 

Imported soybean: Imported Argentine soybean is quoted at 4,400 CNY/tonne at port today. Soybeans are in low volume at Shandong ports, and port traders almost have no soybean available for sales now. And domestic soybean prices also keep firm at present. These together support imported soybean market. However, monthly soybean arrivals at ports are predicted to average 9.8 mln tonnes from May to July, and the market expects there will be soybean vessels from PNW late this month. In addition, several port traders turn willing to make delivery to book profits now. In a hybrid of the bull and the bear, the market for imported soybeans is predicted to be little changed in the short term.

Cottonseed: Cottonseed price stays stable with individual declines of 0.01 yuan/kg. U.S. crude oil plunged to a historic below zero, triggering a drop in both oils and meals today. Besides, inland oil mills are not active in beginning the operation and remain cautious in the purchase of cottonseed. As they tend to force price down, cottonseed price declines in some regions. There is not much cottonseed left in the market, so traders are in no hurry to run out stocks and still prop up price. Therefore, it is predicted that short-term cottonseed price may fluctuate to adjust.

Summary: As global demand crumbled amid coronavirus pandemic, West Texas Intermediate oil prices collapsed into the negative territory for the first time ever on Monday, of which May contract fell $55.90 or 306% to settle at negative $37.63 a barrel. This dampened the whole commodity market sentiment and also hit the demand for biodiesel with soybean oil as feedstocks, so US soybean futures closed lower Monday. And oil futures all fall on the Dalian Commodity Exchange today. In the spot markets, soybean oil drops by 70-170 yuan/tonne and palm oil down by 110-220 yuan/tonne. Spot trading is forecast to be tepid, while there will still be decent purchases on low-level forward basis. Catering services across the world are crippling under the pandemic, and global demand for edible oils is also severely hit by the nationwide lockdown in India and economic downturns. Besides, gross crushing margins for Brazilian soybeans still stay high at 232-330 CNY/tonne on the DCE, so Chinese importers keep purchasing South American crops. And monthly soybean arrivals at ports are predicted to average 9.8 mln tonnes from May to July. Soybean crush in China is forecast to return to a relatively high level in the coming two weeks. Hence, oil futures and spots are both dragged to downside. In the week ending April 17th, soybean oil stocks fell 12% to 900,000 tonnes and palm oil stocks declined by 6% to 610,000 tonnes, but participants are not confident now as soybean crush will pick up quickly with huge soybean cargoes arriving at ports. Overall, the oil market is predicted to follow futures to fluctuate to adjust in the short term, and remains to be seen in the mid-to-long term. Buyers can wait for the moment or take hand-to-mouth buying.

Soybean oil: GB Grade I soybean oil is mainly priced at 5520-5650 yuan/tonne in domestic coastal areas, a decline of 70-170 yuan/tonne. (Tianjin traders 5470-5490 (DCE Y2009+150/170) for May; Rizhao traders 5790; Zhangjiagang traders 5650; and Guangzhou traders 5520 (DCE Y2009+200) for May). 

Palm oil: RBD palm olein is mainly priced at 4770-5100 yuan/tonne in coastal areas, mostly down 110-220 yuan/tonne. (Tianjin traders 5100, down 110; Rizhao traders not available; Zhangjiagang traders 4880-4890, down 220; Guangzhou traders 4770, down 200; and Xiamen not available). 

Imported rapeseed oil: Imported rapeseed oil posts a sharp decline in price today, of which it settles down 100-150 yuan at 6,850-6,930 yuan/tonne in coastal regions. (Fujian 6930, down 150; Guangdong not available, and Guangxi 6850.) As global demand crumbled amid coronavirus pandemic, West Texas Intermediate oil prices collapsed into the negative territory for the first time ever on Monday, of which May contract fell 306% to settle at negative $37.63 a barrel. And farmers in Brazil have harvested 92% of soybean crops, which of are large competitiveness, according to Agrural. These together weighed down US soybean futures to further decline on Monday. In addition to such a situation in crude oil market and concerns over global economic activities amid the pandemic, global demand for vegetable oils has also significantly declined and the nationwide lockdown in India has also punched on the demand for edible oils. As a result, oil futures all fall in China’s commodity exchanges. Besides, considerable crushing margins for soybeans on the DCE continue attracting Chinese importers to keep purchasing, and monthly soybean arrivals at ports are predicted to average 9.8 mln tonnes from May to July. Given this, soybean crush will return to a relatively high level in the coming two weeks. Overall, short-term rapeseed oil market is predicted to follow futures to swing to decline, but remain to be seen in mid-to-long trend. Buyers can wait for the moment.

Cottonseed oil: Cottonseed oil keeps steady with partial declines of 50-100 yuan/tonne today. As the serve coronavirus pandemic greatly hurt demand for crude oil, U.S. crude prices dropped below $0 for the first time ever on Monday, which caused a plummet of $55.9 a barrel or 306% to $-37.63 a barrel for May contract. This case had dampened emotions of the whole commodity markets and demand for biodiesel that with soyoil as feedstock. Besides, U.S. soybeans closed lower last night. And oils on Dalian Commodity Exchange (DCE) also routed today. On the spot market, soybean oil down by 70-170 yuan/tonne and palm oil down by 110-220 yuan/tonne. Furthermore, the delivery of cottonseed oil has been slowed, and some prices follow to decline. But due to low output of cottonseed oil and high cost as cottonseed is out of stock and pricey, some oil mills still tend to prop up price. Being dragged down by gloomy bulk oils, short-term cottonseed oil market may fluctuate to pare gains.