Beginning on August 2nd, soy oil palm oil ended the weak market and ushered in a strong rise. As of August 13, the average market price of soybean oil has risen to 9,490 yuan/ton, and the average price of palm oil has also reached 9,300 yuan/ton. Soybean oil rose 5.84%, palm oil rose 5.59%.
Multiple factors support soybean oil palm oil gains return
In August, due to the downward adjustment of Malay palm oil export data, the negative pressure on external disks, and the high pressure on soybean oil inventories, it came to the front line of 900,000 tons. The terminal consumer demand was flat. Palm oil and soybean oil spot market plunged on August 2. Palm oil fell more than 3% in a single day, and soybean oil fell more than 3%. On August 4, after the sharp drop in palm oil and soybean oil, demand for biodiesel is expected to increase. Palm oil inventories 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%.
The Mid-Autumn Festival is approaching, the stock market for oils and fats has started, and rigid demand has increased, and oils and fats will continue to operate strongly in the market outlook.