It is expected that the overall oil and fat market will fluctuate at high levels in the near future.

Yesterday, the CBOT soybean oil market saw a strong rally, boosted by a sharp surge in crude oil. Yesterday, the Malaysian palm oil market stopped falling and rose, supported by uncertainty in the Middle East and market expectations that March palm oil output will decline. The fighting in the Middle East is unlikely to end completely in the short term. Strong crude oil will increase the likelihood that Indonesia’s B50 plan will be implemented as scheduled. Market speculation about demand for palm oil has not yet ended. The linkage between the vegetable oil market and crude oil has increased significantly; with news flows highly complex and an intense game of tug-of-war between bulls and bears, volatility in the oil and fats futures market is likely to widen. Domestically, Qingming festival stockpiling is nearing its end. End-market demand is cooling and trading is dull. Although refinery maintenance is driving ongoing inventory destocking, which provides support for prices, expectations of a bumper soybean harvest in South America and increased shipment arrivals later on are weighing on the upside. Overall, it is expected that the market will likely trade in high-range consolidation in the near term. (Feed Industry Information Network)