The soybean oil market rebounds supported by strong crude oil, and volatility in the oil futures market is expected to increase.

Yesterday, the CBOT soybean oil market continued to rebound, boosted by the strength in crude oil. Yesterday, the Malaysian palm oil market traded with high-level range fluctuations; as Thailand’s export restrictions eased, selling pressure from the market abated. The situation in the Middle East remains the focus of attention for all parties. Strong crude oil will increase the likelihood that Indonesia’s B50 program will be implemented on schedule. Any time, the demand-related speculation for palm oil could become active again. The news flow is complex and intertwined; long and short sentiment frequently switches, and the volatility in the fats and oils futures market is expected to rise accordingly. In China, domestic oil mills are undergoing concentrated maintenance, resulting in low operating rates, while soybean oil inventories continue to decline. In Brazil, soybean basis weakened and import costs fell. End-market demand is lackluster; downstream buyers purchase as needed, and trading volumes are relatively light. It is expected that in the near term, soybean oil spot prices will trade in a high-range, sideways pattern. (Feed Industry Information Network)