Chinese Edible Oils Market Prices Fluctuate Amid Surplus Supply
The Chinese edible oils market saw fluctuations in soybean oil and rapeseed oil prices during night trading on August 24, according to Mysteel. The DCE Soybean oil price fell during this period.
The weak fundamental reality continues to weigh on spot prices, limiting upside potential for the market. Supply-side fundamentals remain loose, with the oil mill operating rate standing at 68.39% and crushing volumes remaining high. Normal releases of reserve soybeans also contribute to the supply surplus.
On the demand side, although spot transaction volumes have increased recently, this is mainly driven by traders taking delivery rather than downstream end-users replenishing inventories. Commercial soybean oil inventories continue to accumulate, highlighting pressure to destock.