The soybean oil commodity index on March 2 was 55.49, a decrease of 1.34 points from yesterday, a 44.79% decrease from the highest point of the cycle at 100.51 points (2011-09-12), and an increase from the lowest point of December 18, 2018, 50.02 points 10.94%. (Note: Period refers to 2011-09-01 to present)

The Palm Oil Commodity Index on March 2 was 64.84, a decrease of 0.16 points from yesterday, and a decrease of 42.56% from the highest point of the cycle at 112.88 points (2012-04-10), an increase of 51.54 points from the December 16, 2018 minimum. 25.81%. (Note: Period refers to 2012-03-01 to present)

According to SunSirs monitoring: Since February, the market for soybean oil palm oil has continued to fall, and prices have continued to decline, with a decline of more than 20%. As of March 2, the average price of soybean oil in the market was 5,673 yuan / ton, which was 18.29% lower than the price in early February and fell by 2.35% in a single day. The average palm oil market price was 5,124 yuan / ton, a 20.93% drop from the price in early February, and a single-day drop of 0.23%.

Soy oil and palm oil futures fell for the first trading day in March

On the first trading day of March, due to the global epidemic situation, the futures market was negative and the oil futures prices in the outer disk were not performing well. The domestic oil futures market was affected and the prices fell. Among them, soybean oil palm oil futures prices fell. On March 2, the main soybean oil futures contract y2005 opened at 5,600 yuan and closed at 5678 yuan, down 18 yuan. The main palm oil futures p2005 contract opened at 4952 yuan and closed at 5034 yuan, down 36 yuan.

Soybean oil and palm oil begin to decline

Beginning in February, due to the decline in demand for terminal catering, the overall performance of the oil market was sluggish. Due to the blocked logistics and tight supply, the oil has ushered in a wave of make-up. After the make-up, the market continued to fall continuously. The terminal demand is not good, and Malay palm oil enters the cycle of increasing production. From February 1-20, 2020, Malaysia ’s crude palm oil production increased by 17.42% from the previous month. Decreased, the palm oil futures price plunged sharply, and domestic palm oil prices fell with the market. In mid-to-February, the soybean oil plant resumed operation one after another, the terminal catering demand fell, and soybean oil stocks returned to a high level, about 1 million tons, a week-on-month increase of nearly 15%. Multiple bearish suppression, soybean oil and palm oil both fell sharply.

Market Forecast

SunSirs agricultural product analyst Li Bing believes that the expected significant decline in global oil consumption demand is a foregone conclusion, and terminal demand is suppressed. It is expected that soybean oil palm oil prices will have little room to rise in the short term.

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