Grains & fertilizer prices update
Edible oil futures tick higher on China demand upbeat
Futures for edible vegetable oils in China traded higher in the first trading session after the Lunar New Year holiday season as strong demand for food and traveling during the holiday season boosted market sentiment.
The main palm oil futures on Dalian Commodity Exchange (DCE) jumped more than 2% on Monday from the last close price before the holiday, followed by soybean oil on DCE and rapeseed oil futures on Zhengzhou Commodity Exchange (ZCE).
Demand for edible oil was expected to be robust during the holiday season as tens of millions of residents traveled home or visited tourist sites as the Chinese government scrapped nearly all Covid-related restrictions for domestic traveling.
Moreover, the soybean complex also edged higher as shipment delays in Brazil raised fears of import delays in March and Q2, causing domestic soybean meal basis to rise which supported futures.
However, live hog futures on DCE continued to slide after the holiday as ample supply offset the impact of stronger seasonal demand.
