Bullish Support For Soybean Oil And Palm Oil To Record Highs

After the Spring Festival, soybean oil and palm oil continued to rise strongly, and the price reached new highs again, especially palm oil has repeatedly hit record highs and is in the ceiling position. As of February 18, the average market price of soybean oil was 10,736 CNY/ton, up 4.64% from the beginning of the month; the average market price of palm oil was 11,880 CNY/ton, up 8% from the beginning of the month.

According to the price chart of soybean oil from November 22, 2021 to February 13, 2022, it can be seen that in late November, soybean oil was still in a downward trend for 4 consecutive weeks. Beginning in mid-December, soybean oil still regained its upward trend. In the week of December 20, soybean oil rose 3.63%. Beginning in January, soybean oil continued to rise. After the Spring Festival, soybean oil rose by 2.53% in the first week, and it continued to rise until mid-February.

According to the palm oil fluctuation chart from November 22, 2021 to February 13, 2022, it can be seen that in late November, palm oil was stronger than soybean oil, although it was also in decline, the decline was only three weeks. Beginning in mid-December, palm oil still regained its upward trend. Beginning in the week of December 20, it continued to rise for 6 consecutive weeks, with palm oil rising by more than 4%. After the Spring Festival, palm oil rose 2.29% in the first week, and it has been oscillating up until mid-February.

Soybean palm oil hits record high on bullish support

During the Spring Festival, Malaysian palm oil still performed strongly, rising by more than 2%. After the holiday, oil and fat futures ushered in a wave of compensatory gains, and the spot market followed the market. Due to the excessive increase in oil and fat, the price fell sharply after the sharp rise, and the rational callback was mainly due to the overall oscillating rise. The price of palm oil has continued to reach a first-line high of 11,200 CNY/ton, and the price of soybean oil is at 10,500 CNY/ton, continuing the historical high.

After the first wave of soybean oil and palm oil rose sharply, after a short period of consolidation, the market rose again. The main reason is the reduction of palm oil production in Malaysia, the impact of the dry weather of soybeans in South America, the expected increase in the production reduction of imported soybeans, the futures market continues to remain high, and the domestic soybean oil and palm oil spot is also rising. The first-line inventory of 360,000 tons is tight, and the supply is tight. Palm oil gained stronger than soybean oil. As of February 18, palm oil has risen above 11,800 CNY/ton, and soybean oil has reached a high of 10,700 CNY/ton.

There are many bullish factors in the external disk, and the spot inventory pressure of soybean oil and palm oil is less, and the market outlook is still running at a high level.