Grains and fertilizer prices update; Edible oil futures rally extends

Grains and fertilizer prices update

Edible oil futures rally extends, hog futures rebound

Futures for palm oil, soybean oil, and rapeseed oil all ticked higher on Thursday as traders continued to close their short positions.

The main palm oil futures on Dalian Commodity Exchange (DCE) jumped to a one-week high due to short covering.

Soybean oil futures contract also rose for the second consecutive day despite a weaker outlook of a consumer demand recovery in China.

Hog futures on the Dalian exchange rebounded from the five-month low on Thursday after heavy selloffs in the previous five trading sessions.

The main contract bounced slightly higher by market close after touching an intraday low of 20,055 yuan/ton ($2,808/ton), as traders covered their short positions.

The short-selling interest of hog futures increased in the past two months as breeding companies were asked by the government to maintain their sales pace to combat rising pork prices in China.

“Hog herd destocking efforts are strong. [Cash] prices came down,” said one China-based trader.