SunSirs: The Price Of Palm Oil And Soybean Oil Goes Up

On November 12, the palm oil commodity index was 70.99, up 1.64 points from yesterday, down 37.11% from the highest point 112.88 (2012-04-10), and up 37.74% from the lowest point 51.54 on December 16, 2018. (Note: cycle refers to 2012-03-01 to now)

On November 12, soybean oil commodity index was 65.83, up 0.36 points from yesterday, 34.50% lower than the highest point in the cycle, 100.51 (2011-09-12), and 31.61% higher than the lowest point, 50.02, on December 18, 2018. (Note: cycle refers to 2011-09-01 to now)

According to the monitoring of SunSirs: on November 12, the market was red, and the prices of palm oil and soybean oil futures saw a sharp rise. The price of palm oil increased by RMB 90 yuan / ton. The main income of Lian soybean oil is RMB 6464 yuan / ton, with the price rising by RMB 24 yuan / ton. The average spot price of palm oil was RMB 5610 yuan / ton, up 3.16% from last week, 5.45% from the beginning of November and 19.01% from October. The average spot price of soybean oil is RMB 6730 yuan / ton, up 1.71% from last week, 3.33% from the beginning of November and 13.68% from October.

In November, oil sector showed strong performance, MPOB report and USDA report just came out, palm oil production and Inventory were significantly reduced, production reduction has become a foregone conclusion, and exports increased significantly. Stimulated by the positive, palm oil prices rose one after another.

Output: Malaysia's palm oil output in October was 1795880 tons, down nearly 8% year on year. Malaysia's palm oil production in September was 1842433 tons.

Inventory: at the end of October, the Malaysian palm oil depot was 2348066 tons, a decrease of 4.1% month on month. In September, the Malaysian palm oil depot was 2448272 tons, and the inventory at the end of October last year was 2722391 tons, a decrease of 13.74% year on year.

Export: according to amspec agri Malaysia, a shipping survey company, Malaysia's palm oil export volume during November 1-10, 2019 was 414020 tons, 12% higher than the same period in October.

Export: according to the data released by its (Intertek Testing Services), Malaysia's palm oil export volume during November 1-10, 2019 was 412040 tons, 19.7% higher than 344330 tons in the same period of October.

In October, the import of soybeans decreased significantly. According to the customs data, the import of soybeans in October was 6.181 million tons, 24.6% less than 8.2 million tons in September and 10.7% less than 6.92 million tons in the same period of last year. From January to October 2019, China has imported 70.69 million tons of soybeans, a decrease of 6.24 million tons or 8.1% compared with 76.93 million tons in the same period of last year. The supply of raw soybeans is tight, palm oil market is rising, and soybean oil price keeps rising. The mainstream price is RMB 6700 yuan / ton, with a single day price increase of about RMB 100 yuan / ton.

SunSirs agricultural products analyst believes that the current sharp rise in palm oil is mainly supported by the positive news, and the reduction of production has become a foregone conclusion. The positive factors in the future are gradually digested by the market, and the space for the sharp rise is limited. Near the end of the year, the seasonal oil consumption peak season, demand support, soybean oil palm oil market prices will remain strong.

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