News summary
Affected by the expected reduction in Brazilian soybean production and the acceleration of US soybean plantinggojackpotslot, the domestic oil market may continue to fluctuate and divide this weekgojackpotslot, rapeseed oil and soybean oil performed strongly.
Newsletter text
[Volatility of the domestic oil market is affected by multiple factors] Last week, the oil market fluctuated due to various factors, among which the prices of vegetable oil and soybean oil performed strongly.
The market expects an adjustment in Brazilian soybean production, coupled with the acceleration of U.S. soybean planting, and the expected significant growth in Malaysian palm oil production in May, jointly contributing to the differentiation of the domestic oil market.
On the macroeconomic front, the growth rate of corporate activity in the United States in May and the minutes of the Federal Reserve meeting showed a hawkish tendency, causing the US dollar to strengthen and crude oil prices to fall accordingly.
Malaysian palm oil industry data shows that output increased by 18% month-on-month from May 1 to 20gojackpotslot.12%, however, data from ITS, AmSpec and SGS showed a month-on-month decline in exports by 8%-13%, indicating that Malaysia's palm oil stocks may increase significantly in May.
At the same time, domestic palm oil inventories continue to decline, but with the increase in newly purchased ships, the room for inventory decline is expected to be limited.
Brazil's soybean harvest is coming to an end, and market expectations of a reduction in its production continue to exist. Biodiesel demand for soybean oil has increased, and South American soybean oil prices have recently strengthened, which is good for the domestic oil market.
Drought in soybean producing areas in the United States is relatively mild, planting progress is accelerating, domestic soybean arrivals to Hong Kong are expected to increase, oil plant operating rates are expected to remain high, and soybean oil stocks are expected to continue to rise.
Canadian rapeseed planting area is expected to shrink in the new season, rapeseed production in Europe is expected to decline, rapeseed in Australia may face the threat of drought in the new season, domestic vegetable oil stocks continue to grow, and the supply and demand situation of vegetable oil remains relatively loose.
Comprehensive analysis shows that the oil market may continue to experience shocks and divisions in the near future, and the prices of vegetable oil and soybean oil may maintain a relatively strong performance.