SunSirs: Bullish Support, Chinese Soybean Oil and Palm Oil Remains Strong

According to data monitoring by SunSirs: After the National Day, the external disk support and the oil market ushered in a big rise. After the big rise, the high platform dived. In the middle and late ten days, the bullish factor hit again, and the oil market opened the second wave of the big rise. As of October 23, the average market price of soybean oil was 7,366 yuan/ton, an increase of 3.85% from the beginning of the month, and the average market price of palm oil was 6,540 yuan/ton, an increase of 3.61% from the beginning of the month.

According to the monthly rise and fall of soybean oil from January to September 2020, it can be seen that the price of soybean oil has been falling for the first four months, and the soybean oil market began to rise in May. Soybean oil rose relatively well in August and September, around 5 points. Soybean oil continued to perform strongly in October, and after the sharp rise and fall in prices, the price rose again.

According to the monthly rise and fall of palm oil from January to September 2020, it can be seen that the rise and fall of palm oil in 2020 are almost similar, falling for 4 months, rising for 5 months, and the largest decline in February, exceeding 20%. The biggest increase was in July, exceeding 12%. Compared with soybean oil, palm oil underperformed in September, mainly due to the impact of palm oil in Malaysia. In October, palm oil experienced a sharp decline after a sharp rise and then ushered in a rebound again.

Long-short game post-holiday soybean oil palm oil staged a roller coaster market

During the National Day, due to the impact of the La Nina weather, concerns about a reduction in Malay palm oil production are expected to increase, and Malay palm oil exports are expected to increase in October. Supported by bullish conditions, Palm Oil continued to rise. For soybean oil, the planting of South American soybeans was delayed, while US soybeans performed strongly. After the holiday, soy oil palm oil came to supplement the market, with an increase of more than 7 points. After the skyrocketing, the market calmed down, soy palm oil plunged and dropped by about 6 points.

Bullish support, soy oil palm oil ushered in the rise again

In mid-to-late October, after soy oil palm oil fell sharply, the market once again ushered in a rise. Malaysia’s export data is strong. From October 1-20, Malaysian palm oil exports were 1,084,701 tons, an increase of 4.3% from the previous month. U.S. soybean oil and crude oil performed strongly. Soybean oil palm oil futures rose sharply. Soybean oil palm oil, which was at a trough, rebounded again. The price rose for three consecutive days, or more than 4%.

SunSirs agricultural products analysts believe that oils and fats are in the peak consumption season and bullish support is still there. There is still room for growth in the short term, and it is not appropriate to be too bearish.

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