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SunSirs: Bullish Support, China's Soybean Oil and Palm Oil Rose Wildly
April 23 2021 08:28:09SunSirs(Linda)

Since April, the palm oil and soybean oil market has entered a period of turbulence, the price has risen and fallen sharply, and the overall trend has fluctuated upward. After the Ching Ming Festival, palm oil and soybean oil ushered in a big rise, with an increase of more than 3% close to 4%. After the big rise, it ushered in a callback. After a short adjustment, palm oil and soybean oil set off again, and the market continued to rise sharply. As of April 22, the average market price of palm oil was 8,352 yuan/ton, up 6.39% from the beginning of April, and the average price of soybean oil was 9,566 yuan/ton, up 4.33% from the beginning of April.

Mapan palm oil exports are strong, boosting soybean oil palm oil rise

Since April, palm oil and soybean oil has entered a period of high volatility, prices have risen and fallen sharply, and the market lacks clear guidance. Malaysia palm oil exports are strongly driven, soy palm oil once again ushered in an upward trend in late April. Institutional data shows that from April 1-20, Malay palm oil exports increased by more than 10% month-on-month. Malay palm oil in the outer market rose strongly. On 21-22, oil and fat futures rose sharply. On the 21st, even palm oil closed at 7432 yuan/ton, an increase of 314 yuan/ton; and even soybean oil closed at 8488 yuan/ton, an increase of 240 yuan/ton. On the 22nd, even palm oil closed at 7,520 yuan/ton, up 184 yuan/ton, and even soybean oil closed at 8,588 yuan/ton, up 144 yuan/ton. The futures market was boosted, and the oil and fat spot market rose sharply. Palm oil rose 5.59% on the two days, and soybean oil rose 2.9% on the two days.

Low stocks, soy oil palm oil soared continuously

The reason why soybean oil palm oil has been able to stage multiple rises is mainly because the inventory is at a low level, which supports the soy oil palm oil market soaring. As of the week of April 16, soybean oil stocks have fallen to 570,000 tons, a drop of more than 3% on a week-on-week basis, and palm oil port inventories have fallen to 420,000 tons, a drop of over 8% on a week-on-week basis. Inventory pressure is small, US soybeans are strong, soy palm oil prices continue to rise strongly.

SunSirs agricultural products analysts believe that the May Day holiday is approaching, increased demand for concentrated oil consumption, tight supply, and room for growth. As the dumping of reserves is still going on, the market outlook for oils may usher in high oscillations, so you should not be too bearish.

If you have any questions, please feel free to contact SunSirs with support@sunsirs.com.

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