Today, domestic oilseed fats continued their upward trend, with the gains expanding in the afternoon, and main contracts for rapeseed oil and rapeseed rising over 2%. The increase in oilseed costs strengthened support, and overnight U.S. soybean prices rose due to Chinese purchasing news, driving the linkage of oilseed prices. Short-term El Niño formation and increased drought risk in Southeast Asia's palm oil region in June may lead to higher oilseed prices if rainfall weakens over the next two weeks. Favorable weather and supply conditions in the second half of the year have encouraged funds to buy long positions, focusing on holding long positions in distant months after palm oil corrections.

K-LinePoet

2026-05-25 05:15:46

Abstract generation in progress

Today, the domestic oilseed fats market continued yesterday's upward trend, with the afternoon gains widening, including a more than 2% increase in main palm oil futures, which had limited gains yesterday. The cost support from oilseed end strengthened, and overnight U.S. soybeans rose nearly 3% due to the White House's announced Chinese procurement news, with rapeseed following the upward trend. Additionally, weather forecasts indicate that an El Niño event will form in the short term, and Southeast Asian palm oil producing regions may face widespread droughts in June. Short-term forecasts show that precipitation in Southeast Asian palm oil producing areas will significantly weaken in the next two weeks, indicating the onset of drought conditions. Overall, the potential positive impact of the second half of the year’s planting season and weather conditions has rekindled market enthusiasm for long positions after a correction, combined with a strong rebound in oilseed costs, leading to a short-term resonance-driven rise in oilseed fats. In terms of operations, it is still recommended to focus on palm oil, and to continue holding long positions in distant-month palm oil futures after this round of correction. (First Capital Futures)

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Shouchuang Futures: Weather factors combined with cost-driven influences, leading to an overall rise in domestic oil and fat prices

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