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Home > News > Food Industry News > The market sentiment was released, and the oil fluctuated higher overall

The market sentiment was released, and the oil fluctuated higher overall

ECHEMI 2020-12-24

With the release of market sentiment, today's oils and fats fluctuated higher as a whole. Soybean Oil 01 contract once again demonstrated its rising strength near the delivery month, supported by preference fundamentals.

 

Regarding palm oil, many agencies have estimated that the output of Ma Palm will decrease by more than 10% from December 1 to 20, but the export growth rate during the corresponding period is as high as about 18%. According to this rhythm, the historical low inventory of Ma Palm continues to fall. Although Malaysia has resumed the levy of CPO export tariffs, the tariff rate will be set at 8% in January next year. However, when CPO exports only account for 1/3 of total exports and Indonesia’s export levy is higher, the export pressure brought by tariff increases It's not big either. Indonesia has set a biodiesel blending quota of 9.2 million kiloliters in 2021, which is higher than the 8.5 million kiloliters rumored to be reduced to 8.5 million kiloliters in the previous week, which can be considered a reassurance for the market.

 

In terms of beans, in the context of continued drought in Argentina and strong demand for U.S. beans, U.S. beans stood at 1,200 cents, and the support below is also strong enough.

 

On the whole, despite the existence of macro disturbances, the fundamentals of oils and fats have not deteriorated, and the support below is still strong. It is expected that it will gradually stabilize and rebound with the release of sentiment, and maintain a callback buying strategy in the next 1-2 months of the trading cycle. change.

Disclaimer: ECHEMI reserves the right of final explanation and revision for all the information.

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