CICC Wealth Futures: Market sentiment still remains unstable, and the oil and fat market trends are still prone to fluctuations.

On Monday, CBOT soybean oil prices rebounded after falling, boosted by a rebound in the crude oil market. On Monday, Malaysia’s palm oil market also recovered after declines, following the rise in crude oil and other vegetable oil prices. High-frequency data released by institutions show that from April 1-20, Malaysia’s palm oil exports decreased by 25.57%-25.8% month-on-month, while production from April 1-15 increased by 27.42% month-on-month. The Malaysian government has increased the mandatory blending ratio for biodiesel to the B15 plan, which is expected to increase palm oil consumption by over 300k tons annually. On Monday, domestic oilseed futures markets opened lower and closed higher overall, with market sentiment clearly following crude oil fluctuations. Overall, domestic oilseed supply is ample, palm oil inventories are high, and the weak supply and demand fundamentals of overseas palm oil have dampened the domestic bullish outlook for palm oil. Increased imports of soybeans have boosted mill operation rates, and the demand for stockpiling during the May Day holiday is expected to ease inventory pressure. The Middle East situation remains complex and volatile, and market sentiment has yet to stabilize, making the oilseed market prone to fluctuations. (CICC Wealth Futures)