Shouchuang Futures: Crude oil rises sharply then pulls back, domestic palm oil continues to decline

Today, the domestic palm oil market continued to pull back, while the Malaysian market rebounded yesterday but is closed today, leading to a lack of market guidance. Overnight, international crude oil prices surged then retreated as the U.S. requested Israel to suspend strikes on Iranian energy facilities, easing fears of long-term supply disruptions in the Gulf. Additionally, yesterday, the U.S. soybean oil continued to decline slightly, with rumors suggesting that the SRE reallocation policy will not be implemented simultaneously with the RFS policy on March 27, leading to the unwinding of oilseed futures arbitrage positions. Overall, in the short term, international oilseed prices lack strong upward momentum, and the demand for soybean meal and soybean oil driven by policy expectations cannot be realized yet, which limits the short-term upside potential for international palm oil prices. Operationally, it is recommended to close near-month long positions and consider shifting to longer-dated contracts. (First Capital Futures)