Price trend
According to the monitoring data of SunSirs, since March, the soybean oil market has been sliding, continuing to oscillate and fall. On March 1st, the average price of soybean oil market was 9,634 RMB/ton. On March 22nd, the average price of soybean oil market was 8,490 RMB/ton, with a price decrease of 11.87%.
Analysis review
The factors affecting the decline of soybean oil market this round were as follows:
Supply: According to shipping data, the arrival volume of imported soybeans in March was 6.19 million tons, an increase of 318,000 tons compared to the forecast of 5.872 million tons last month, and an increase of 405,000 tons compared to 5.785 million tons last year. The supply of imported raw materials soybeans had increased, and the rise of soybean oil price was under pressure.
Inventory: Soybean oil inventory in the first quarter has been running at a high level, continuing to be at the line of 800,000 tons. The soybean oil inventory continued to hover between 740,000-840,000 tons, mainly operating at high levels. In mid March, the soybean oil inventory declined somewhat, still at 670,000 tons, which was not significant, dragging down the soybean oil market to some extent.
Disk: South American soybeans had been intensively listed, while the futures price of American soybean oil continued to decline. Global vegetable oil consumption demand is poor, and the external oil market is weak. Soybean oil in Dalian fell with the market, and the spot market of soybean oil continued to decline
Demand: The consumer demand in the terminal catering industry had declined somewhat, coupled with the continuous decline in the price of soybean oil, and the stocking of catering enterprises were slowdown. As you use and then purchase, demand was weak, and the soybean oil market continued to decline in a weak manner.
Market outlook
Agricultural product analysts from SunSirs believe that the soybean oil market had fallen to a low point, and inventory levels had declined. It is expected that the soybean oil market is expected to stop falling and recover in the future.
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