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SunSirs reports that soybean oil and palm oil prices kept falling in early March, with domestic Chinese averages down more than 20% since early February. Soybean oil averaged 5,673 yuan per tonne and palm oil 5,124 yuan per tonne on March 2, and both futures contracts closed lower on the first trading day of March.
Falling Chinese vegetable oil prices reflect weaker demand tied to the epidemic and pressure on futures markets. Buyers should expect lower oilseed meal and oil input costs in the near term, though the move is largely a continuation of an existing decline.
sunsirs.comMar 4, 2020Not enough comparable past events yet for a historical read.
Not enough comparable past events yet for a historical read.
Moves of each commodity's benchmark from the last close before the event. Historical reads pool past events of the same kind; they describe what happened, not what will. Not investment advice.
Reports of Chinese palm and soybean oil prices falling more than 20% since early February, with futures closing lower in early March, show continued demand-side and sentiment weakness in the days leading into the 5-day decline.
Both Chinese palm and soybean oil futures closed lower on the first trading day of March, confirming broad-based vegetable oil weakness on the move date.
Chinese palm and soybean oil prices kept falling and futures closed lower on March 2, confirming weak demand and spillover from competing oils on the final day of the window.
