Price trend
According to the Commodity Market Analysis System of SunSirs, since April, the soybean oil palm oil market has been experiencing sluggish growth, mainly oscillating decline, and prices have been continuously decreasing. At the beginning of the month, the average market price of soybean oil was 8,868 RMB/ton. On April 28th, the average market price of soybean oil was 8,084 RMB/ton, with a price drop of 8.84%. At the beginning of the month, the average price of palm oil in the market was 7,768 RMB/ton. On April 28th, the average price of palm oil in the market was 7,424 RMB/ton, a decrease of 4.43%.
Under bearish pressure, the soybean oil and palm oil market oscillated and declined in April
At the beginning of the month, supported by external oil futures prices, the soybean oil palm oil market saw an upward trend, with soybean oil prices rising to 9,746 RMB/ton, an increase of over 2.7%, and palm oil rising to 8,010 RMB/ton, an increase of over 3%.
Starting from the 4th, the demand for terminal oils had fallen, and soybean oil inventories remained high. The import of raw soybeans to ports increased, resulting in loose supply. Multiple bearish factors suppressed the soybean oil market, causing a sustained oscillating decline pattern. The price was continuously falling until the end of the month, with an overall decline of over 11%.
In terms of palm oil, Malaysian palm oil in the external market entered a production increased cycle, suppressing the palm oil futures market. The overall demand in the domestic oil terminal catering industry was relatively low. The combination of multiple bearish factors had led to a continued weak and downward trend in the palm oil futures market, while the spot market had also fallen along with the market. The mainstream quotation fell to the line of 7,400 RMB/ton, a decrease of over 7%.
Due to the increasingly hot weather, the substitution effect of palm oil increased. Overall, palm oil has stronger anti drop performance compared to soybean oil, with a smaller drop rate.
Market outlook
Agricultural product analysts from SunSirs believe that in May, the import of raw materials from soybeans to ports will remain high, with bearish factors still present, and the rise of soybean oil in the future will remain under pressure.
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