CICC Wealth Futures: The domestic oil and fat futures market is expected to experience a rebound after the holiday.

During the holiday period, the CBOT soybean oil market remained strong, hitting new highs technically, supported by the crude oil market and U.S. biofuel policies. On Tuesday, Malaysia’s palm oil market rose to a four-week high, boosted by Malaysian biodiesel plans. Senior Malaysian officials stated that the country will begin producing biodiesel with a 15% palm oil blend (B15) starting in June. Market participants indicated that if B15 is successfully implemented, nearly 1.5 million tons of crude palm oil will be needed annually. Before the holiday, domestic oilseed futures markets showed mixed trends, with rapeseed oil futures rising continuously, while palm oil and soybean oil futures remained volatile and consolidating. Imports of Russian rapeseed oil were restricted, driving rapeseed oil futures higher. Domestic soybean oil inventories are high, and soybean supply remains ample, which may limit upward momentum in the soybean oil market. The weak supply and demand fundamentals for palm oil in producing regions in April have been priced in, and Malaysia’s B15 and Indonesia’s B50 will provide support against falling prices for palm oil. During the holiday period, CBOT soybean oil remained strong, and Malaysian palm oil fluctuated and rebounded. After the holiday, the domestic oilseed futures market is expected to see a rebound. (CICC Wealth Futures)