China’s soybean oil market continues upward trend: stocks decreased by 15%

Internationally, the US Environmental Protection Agency’s proposal to increase the biodiesel quota by 2026 and adjust exemption rates led to a rise in global oil prices, which also impacted the domestic market. This, coupled with geopolitical tensions fueling crude oil prices, provided additional support to the oil sector. Meanwhile, rising palm oil prices widened the spread between soybean and palm oil prices, adding another factor to domestic soybean oil prices. Domestic demand in China increased due to inventory buildup ahead of the Spring Festival, with some oil mills scheduling deliveries for early February. Commercial inventories decreased by approximately 15% compared to the previous month. Limited rapeseed oil imports, continued inventory drawdowns, and the reverse spread between soybean and palm oil prices shifted market demand toward soybean oil, fueling strong domestic demand. Domestic soybean oil inventories have been steadily declining since the fourth quarter of ...