SunSirs: Supply Pressure Still Existed, and the Soybean Oil Market Continued to Decline

Price trend

According to monitoring data from SunSirs, starting from April 4th, the soybean oil market continued to oscillate and decline, with a drop of over 4%. On April 4th, the average price of soybean oil market was 9,110 RMB/ton. On April 13th, the average price of soybean oil market was 8,670 RMB/ton, with a price drop of 4.79%.

The factors affecting the decline of soybean oil market in this round were as follows:

Supply side: According to data released by customs, China's soybean imports in March were 6.853 million tons, an increase of 500,000 tons or 7.87% compared to the same period last year. The quantity of imported soybeans as raw materials continued to increase, and supply pressure had doubled, suppressing the soybean oil market.

Inventory: In early April, soybean oil inventory decreased slightly compared to March, but the degree of decline was not significant, still at the line of 640000 tons, and still high. Inventory data had limited impact on the soybean oil market.

Futures trading: Since April, South American soybeans have been listed, while US soybean oil futures prices have fallen. The global demand for vegetable oil consumption was sluggish, and the external oil market was weak and declining. Dalian soybean oil futures fell with the market, and the spot soybean oil market continued to decline.

Demand: The consumption demand in the terminal catering industry was stable, and the stocking enthusiasm of terminal catering enterprises was not high. On demand procurement, the soybean oil market was weak, and weakly declined.

Market outlook

Agricultural product analysts from SunSirs believe that there was a large amount of imported soybeans, and supply side pressure was still present. The future market of soybean oil will continue to be dominated by a weak decline.

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