Since August, after the soy oil palm oil market experienced a decline at the beginning of the month, the USDA report was bullish, and the market was stimulated by the sharp rise of palm oil in Malaysia. From August 3 to August 17, soybean oil rose 8 points, and palm oil rose nearly 5 points. On August 18, soy oil palm oil ushered in a diving market after a sharp rise. Soybean oil fell 2.69% in a single day, and palm oil fell 3.16% in a single day.

From the end of May to August, soybean oil has been showing ups and downs, with more weekly rises. Soybean oil saw the biggest weekly increase at the end of June, reaching 4.44%. In mid-June, soybean oil fell the most, with a drop of 8.72%. In May, the Soybean Oil State Reserve Auctions started one after another. The soy oil growth rate, which has continued to skyrocket, has declined. Coupled with the increased pressure on soybean oil inventories, the performance of soybean oil is weaker than palm oil. Supported by bullish factors in August, soybean oil rose for two consecutive weeks, with an overall increase of more than 6%. Soybean oil surged this Wednesday and ushered in a dive.

From May to August, palm oil showed an overall increase, with only 4 weeks showing a decline, with the largest drop of 8%. Under the strong boost of Mapan palm oil, palm oil rose better. The performance was poor in the first half of June. In July, palm oil was relatively sluggish in the first half of the month. After a callback, it returned to an upward trend. In August, the USDA reported a bullish report. Under the boost of palm oil in the market, palm oil ushered in a two-week streak of gains with an increase of more than 6%.

Bullish support, soy oil palm oil staged a surge

On August 4, after the sharp drop in palm oil and soybean oil, demand for biodiesel is expected to increase. Palm oil stocks are low, at 300,000 tons. Supported by bullishness, palm oil and soybean oil once again ushered in a rebound, with a single-day increase of more than 1%. Because of the increased substitution of palm oil, the price gap with soybean oil has narrowed.

In the second week of August, the MPOB report data was released. The data showed that domestic consumption of palm oil in July was 286,000 tons, an increase of 30,000 tons of inventory from the previous month: In July, palm oil carried over inventory was 1.496 million tons, a decrease of 118,000 tons from the previous month. Inventory decreased and consumption increased, which was obviously bullish. Soybean oil palm oil futures spot rose for two consecutive days. Soybean oil saw a weekly increase of 2.41% and palm oil saw a weekly increase of 3.25%.

Soybean oil and palm oil plunged

At the beginning of this week, soybean oil palm oil ushered in a supplementary increase due to the impact of the weekend's external market rally. On August 18th, the news was cashed out, the market was mainly bearish, the terminal stock market gradually ended, the soybean oil palm oil market took a sharp turn, and the futures stocks plunged. The mainstream spot price of soybean oil fell to 9,416 yuan/ton, a daily drop of more than 2%. The mainstream spot quotation of palm oil fell to 8952 yuan/ton, a daily drop of more than 3%.

Soy palm oil stocks are currently at a low level, and the external market is still profitable. Soy palm oil is still expected to return to the uptrend in the market outlook.

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