Capital Futures: Domestic oil and fat continue to rebound.

Domestic edible oil futures rebounded for the second consecutive trading day today, with soybean, palm, and rapeseed oils all posting modest gains. Before the market’s short-term repair of earlier losses, it returned to a choppy, range-bound pattern of consolidation. On Friday, overseas markets continued to rebound, but the rebound was limited in magnitude: US soybeans and Canadian canola both saw slight pullbacks, while palm oil surged and then fell back from its highs. The situation around the straits fluctuated repeatedly over the weekend, and crude oil prices continued to trade in a range-bound weakness.

On the fundamentals front, Malaysia’s high-frequency production and export data continue to point to June inventories building up to about 2.5 million tons. Regarding Indonesia, it announced a B50 transition period, and the pressure for catch-up declines within the year is limited. Overall, after the market absorbed the bearish impact brought by the crude oil drop, it saw a rebound correction; however, there is limited scope for any real improvement in fundamentals in the near term. It is expected that, in the short term, the market will mainly maintain a low-level, range-bound pullback. In terms of trading, a one-way approach is not recommended for now—participants should temporarily stay on the sidelines. (Founder Futures)