The soybean oil commodity index was at 52.95 on March 9, down 2.38 points from yesterday, down 47.32% from the cycle's peak of 100.51 (2011-September-12), and up 5.86% from the low of 50.02 on December 18, 2018 (Note: period refers to 2011-September-01 till now). 

The palm oil commodity index was at 62.49 on March 9, down 2.84 points from yesterday, down 44.64% from the cycle high of 112.88 (2012-04-10) and up 21.25% from the low of 51.54 on December 16, 2018. (Note: period from March 1, 2012 to now). 

In March, the external oil market has a downturn. The terminal catering demand is weak. Soybean oil and palm oil market continued to test the market. On March 9, it ushered in a drop. 

Meanwhile, on March 9, foreign crude oil futures plunged, the main contract of soybean oil and palm oil futures opened down by the daily limit, and the spot price plunged with the market, with a daily decline of nearly 250 RMB/ton. 

The average price of soybean oil in the market was 5413 RMB/ton, down 6.83% from early march, or 4.3% on a single day. The market average price of palm oil was 4,938 RMB/ton, down 3.86% from early march, or 4.34% on a single day.

Soybean oil and palm oil futures fell by their daily limit

On March 9, international crude oil prices are accelerating down. In New York, WTI crude fell more than 30% to $30 a barrel, reaching at its lowest level in four years. Crude oil futures plunged, and the biodiesel feedstock of soybean oil palm oil futures affected. The main contract fell by the daily limit.

Lian soybean oil main contract opened 5,466 RMB/ton, close at 5,466 RMB/ton, down 226 RMB/ton. The main contract for palm oil opened at 4,864 RMB /ton, ending down 246 RMB/ton at 4,864 RMB/ton.

Futures prices dragged soybean oil palm oil spot with the market fell

The futures price of soybean oil and palm oil fell by 220-250 RMB per ton. Spot prices for soybean oil and palm oil tumbled. Soybean oil mainstream quote 5400-5500 RMB/ton, the price dropped more than 200 RMB/ton. Palm oil spot mainstream quoted 4,950-5,000 RMB/ton, the price fell about 250 RMB/ton. Futures market pressure coupled with a sharp decline in the centralized consumption of terminal catering. oil terminal demand is depressed, and soybean oil inventory doubled. Oil market thoroughly into the downward channel, up weak.

Market Forecasting

SunSirs agricultural products analyst Li Bing thinks that multiple negative factors hit and oil in the short-term rise space is relatively low. Because the current price of soybean oil palm oil is basically close to the bottom, it continues to explore the space is limited and it is expected to continue to weakly operate. 

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