Shouchuang Futures: Rising crude oil prices drive rebound in oils and fats

Affected by the surge in crude oil prices again, domestic oil and fat markets opened higher today, but the intraday momentum was limited. The Iran war theme continues to ferment, with both sides attacking energy facilities, triggering market fears of longer-term supply disruptions. Overnight, crude oil rose 6%, and today’s domestic market continued to rise by 4%. However, international oils and fats were only modestly affected; overnight, U.S. soybean oil slightly retraced, and Malaysian palm oil only rebounded mildly. The spot fundamentals currently impose constraints on short-term domestic and international oil and fat prices, and the consumption outlook driven by the sharp rise in crude oil remains subject to policy confirmation from various countries. Overall, we are optimistic about the long-term upside potential of oils and fats, cautious about short-term price increases, but attentive to market sentiment fluctuations. In terms of trading, it is recommended to buy palm oil and rapeseed oil long positions on dips, mainly for deferred months. (First Capital Futures)