China rapeseed oil prices decline amid rising supply and weak demand
China’s rapeseed oil prices fell 1.18% between June 11 and 16 due to rising domestic supply, increased crushing activity, and weak seasonal demand. Additional pressure came from lower soybean oil prices, weak crude oil markets, and declining futures. Prices are expected to remain subdued in the short term, while weather conditions in Canada may influence longer-term prospects.
According to SunSirs, the average market price of rapeseed oil in China fell from 10,210 RMB/ton on June 11 to 10,090 RMB/ton on June 16, marking a decline of 1.18%. The market is under pressure from rising domestic rapeseed arrivals and increased crushing activity at processing plants, leading to seasonal stock accumulation and looser short-term supply.
At the same time, demand remains weak as the market enters the traditional off-season for edible oil consumption. Purchasing activity from the catering and food processing sectors is sluggish, while lower soybean oil prices are encouraging processors to substitute rapeseed oil, further reducing demand. Weak crude oil prices have also weighed on overall sentiment in the vegetable oil complex.
Futures market weakness is adding additional pressure, prompting spot traders to lower their offers in line with declining futures prices. This has reinforced a bearish short-term outlook for the market.
In the near term, prices are expected to remain under downward pressure due to ample supply and weak consumption. Medium-term prospects remain mixed, with nearby contracts facing pressure from inventory buildup, while distant-month contracts receive some support from expectations of lower global rapeseed production. Market attention will remain focused on weather conditions in key Canadian growing regions.
To Read more about Edible Oil News continue reading Agriinsite.com
Source : Ukr Agro Consult
