Global Commodities Plunge, Oil Market Funds Pull Out Early

Global stock and commodity markets across the board plunged, leading agricultural futures to stop falling.


U.S. crude oil futures plunged about 5 percent on Monday as an increase in new cases raised concerns about global demand, and the possible resumption of production in Libya fueled fears of a supply glut.


Chicago Board of Trade (CBOT) soybean futures plunged 2.1 percent on Monday, recording the biggest one-day drop since April 1, traders said, as commodity markets were generally sold off, investment funds liquidated long positions. CBOT November soybean futures contract settlement price closed down 21 cents, closing today even soybean oil January contract opened lower, volatile decline, the end of the session closed down 228 yuan or 3.08 percent, reported at 7172 yuan, increased trading volume, decreased positions, precipitated funds 7.382 billion yuan, outflow of 1.072 billion yuan.


Even palm oil futures opened low, the end of the day to close with a negative line, of which 2101 contract 6400 yuan to open, the highest 6406 yuan, the lowest 6160 yuan, closed at 6178 down 278 yuan, the day's 58,000 hand position reduction.


The National Day holiday is approaching, oil and grease scale stockpiling is basically over, demand for a large number of start-up season is the end of November and early December, so do not rule out even soybean oil fell below 7000 yuan again may.


Even palm oil will continue to weaken lower in the short term, concerned about the ability to obtain support in the vicinity of 6,000 yuan to stop the decline and stabilize, otherwise there is a risk of further downward weakening adjustment.