SunSirs: China Rapeseed Oil Market Declined due to the Increase of Imports

According to the monitoring data of SunSirs, the average price of rapeseed oil in the spot market on November 1 was 13,544 RMB/ ton, and the average price of rapeseed oil in the spot market on November 28 was 13,200 RMB/ ton, with a decline of 2.54%.

In November, the spot rapeseed oil first experienced strong shocks and then fell sharply. In the first half of the month, rapeseed oil was mainly supported by low inventory, and the price trend was relatively strong. In the second half, the supply of rapeseed oil was expected to increase, and the price was weak and downward.

In terms of supply, the quantity of imported rapeseed oil in early November was relatively small, and the domestic rapeseed oil inventory was at a low level in recent years, mainly supporting the strong trend of rapeseed oil shock. From November to December, a large number of imported rapeseed arrived in Hong Kong, the operating rate of oil plants is expected to rise significantly, the supply of rapeseed oil will increase, and the spot price of bad rapeseed oil will decline significantly; However, rumors about the purchase and storage of rapeseed oil boosted the rapeseed oil market to some extent. In terms of demand, affected by domestic public events, the demand for oil is weak, which depresses the price of rapeseed oil. The market procurement is dominated by rigid demand.

According to the monitoring of SunSirs, the average market price of soybean oil in Shandong was 10,292 RMB/ ton on November 1, and 9,884 RMB/ ton on November 28, down 3.96%. On November 1, the average price of palm oil in the domestic market was 8,566 RMB/ ton, and on November 28, the average price of palm oil in the domestic market was 8,282 RMB/ ton, down 3.32%. In November, the three major oil and fat markets weakened one after another, and the consumption of oil and fat was weak due to domestic public events, which was bad for the oil and fat market.

It is expected that a large number of imported rapeseed will arrive in Hong Kong from November, and the domestic rapeseed supply will turn from tight to loose; Affected by domestic public events, the demand for rapeseed oil is weak and hard to change. The rapeseed oil analysts of SunSirs predict that the trend of rapeseed oil may be more volatile and weak.

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