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SunSirs: In the First Half of 2021, China's Soybean Oil and Palm Oil Has Repeatedly Set New Highs
July 02 2021 08:11:45SunSirs(Linda)

In the first half of 2021, soybean oil palm oil has repeatedly set record highs, leading the rise in turns. Soybean oil led the way in the first quarter, leading palm oil to soar. The highest price of soybean oil has exceeded 10,000. On March 9, soybean oil rose to 10,336 yuan/ton, a record high. The strong performance of palm oil in the second quarter led soy oil to fly. On May 13, the highest price of palm oil rose to 9,350 yuan/ton, a record high.

On March 9, 2021, soybean oil rose to 10,316 yuan/ton. From 2018 to March 2020, the average soybean oil price has been 5,400-5,700 yuan/ton. Even in 2017, the price of soybean oil was only 6,862 yuan/ton. It will be the whole in 2021. It is nearly 5,000 yuan/ton higher than that, which can be described as skyrocketing. The price of soybean oil over 10,000 yuan is higher than the highest point in the past five years.

On May 13, 2021, palm oil rose to 9350 yuan/ton. From 2018 to May 2020, the average palm oil price has been 4300-5000 yuan/ton. Even in 2017, the price of palm oil was only 5758 yuan/ton. In 2021, it will be 5,000 yuan/ton higher than that, which can be described as skyrocketing. The price of palm oil is close to ten thousand yuan, which has not appeared in the past five years.

What happened to soybean oil palm oil in 2021? Soaring, callback, rushing higher and falling again.

Skyrocketing

2021 is an unusual year for soybean oil and palm oil. After the Spring Festival, soybean oil and palm oil ushered in a skyrocketing increase. In early March, soybean oil became the leader, soaring more than 10,000 yuan. With the blessing of soybean oil, palm oil also soared to 8400 yuan/ton for the first line. This round of skyrocketing prices was led by the external market, crude oil soared, extreme weather in the United States, soy oil prices soared, Malaysian palm oil exports were strong, and soy palm oil inventories were tight, supported by multiple bullish factors, soy palm oil soared and rushed to the sky. Yunxiao.

Callback

After the soy oil palm oil skyrocketed, the bad news came. Starting from March 19, the soy oil dumped and stored, the horse pan palm oil went down, and the bad news was suppressed. Soy oil palm oil started high diving and fell until the second quarter. As the so-called rise, the fall will be fierce. Soybean oil rises high and falls heavily. Palm oil is relatively better, and the overall trend is in a correction. On March 30, the price of soybean oil fell to 8,916 yuan/ton, an increase of 2.88% from the beginning of the year, and the price of palm oil fell to 7,670 yuan/ton, an increase of 5.53% from the beginning of the year.

Roller coaster

In the second quarter, the weather turned warmer, and the role of palm oil as a substitute for soybean oil increased. In addition, soy oil storage was suppressed. Imported soybeans increased. Soybean oil stocks have shown an increase. Palm oil port inventories continue to decline. Soybean oil's growth is obviously not as good as palm oil. . With the blessing of the external disk, after the Ching Ming Festival, soybean oil palm oil ushered in a wave of rise, and soon fell back. In mid-April, the export of palm oil from Mapan was strong, and the outer disk renewed its strength, and palm oil flew with soybean oil. Palm oil's current round of rising sentiment continued until mid-May, rising out of the sky, reaching a maximum of 9,350 yuan/ton. Soybean oil was suppressed by its own bad news, and the daily limit reached 9,900 yuan, returning to a historical high.

Beginning in mid-May, dragged down by the pressure of soybean oil inventories, soybean oil palm oil once again dived, showing a roller coaster market, and began to fall endlessly until the end of June before it began to rebound again, and the extent of the rebound was unstoppable. On June 30, soybean oil fell to 8,846 yuan/ton, down 3.53% from the beginning of April; the average market price of palm oil was 8,404 yuan/ton, up 7.06% from the beginning of April.

Inventory is low, soy oil palm oil remained high in the first half of the year

The skyrocketing soy oil palm oil market in the first half of 2021 was mainly supported by low inventories. Despite the roller coaster market, the price was still at a high level. Soybean oil rose by 2.08% in the first half of the year. The reason why soybean oil soared so violently was inseparable from the increase in soybean oil stocks. Soybean oil stocks began to decline after the Spring Festival and reached their lowest point in April, and then began to rise back to a high of 1 million tons. This is also one of the reasons why soybean oil's rise in the second quarter was not as good as palm oil.

In the first half of 2021, palm oil rose by 15% as a whole. According to the palm oil inventory curve, it can be well explained that palm oil inventories have been falling. It has fallen to the 340,000 tons line in June.

Oils and fats performed strongly in the first half of 2021, especially palm oil. In the second half of the year, the US soybeans were in the growing season and the hype season reappeared. On July 1, under the support of the USDA report, soybean oil and palm oil were still showing a surge. In the second half of the year, soybean oil and palm oil still had a chance, or went crazy again. 

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

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