According to SunSirs data monitoring, palm oil and soybean oil in July changed from the downturn in June and returned to rising prices. The first half of the month was still at a low level, and the second half of the month ushered in a big increase in the market. Although the rising process was accompanied by a correction in the market, palm oil and soybean oil still showed a big rise overall. At the beginning of the month, the average market price of palm oil was 5,276 yuan/ton, and at the end of the month, the average price of palm oil was 5,888 yuan/ton, an increase of 11.6%. At the beginning of the month, the average price of soybean oil was RMB 5,713/ton, and at the end of the month, the average price of soybean oil was RMB 6,346/ton, an increase of 11.09%.
Benefit factors come, July palm oil and soybean oil go up a lot
Beginning in July, palm oil and soybean oil have begun to rise. The performance of the first half of the month was relatively calm. In the second half of the month, palm oil and soybean oil have braved the wind and waves and started the upward trend. The surge in soybean oil was mainly driven by palm oil. On the fundamentals of palm oil, there are frequent good news. Increased rainfall in the main producing country, Indonesia and Malaysia, triggered concerns about production cuts. The export data of Malaysian palm oil in July increased sharply year-on-year. Boosted by this bullish factor, palm oil prices rose sharply in late July. The increase is more than 10%. Soybean oil also rose sharply under its leadership, with prices exceeding 10%.
The surge in palm oil and soybean oil in July was mainly supported by palm oil. Due to the increasing volume of imported soybeans to ports, soybean oil stocks are always at a high level, the growth rate of US soybeans is good, the weather hype theme weakened, and soybean oil stocks approached 1.2 million tons. The first line will continue to be a boost to the rise of palm oil and soybean oil, so the market outlook for palm oil and soybean oil may not continue.
SunSirs agricultural product analysts believe that the end consumer demand for fats and oils has weakened in August. The sharp rise in palm oil and soybean oil in July is mainly due to the expected increase in production cuts. The pressure on soybean oil supply is still there. The rise of palm oil remains to be seen. The rising sentiment will end, and the weak downward trend will prevail.
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