Soybean: The traders in the northeastern producing region in China have largely cleared low-cost inventories, maintaining a strong willingness to hold the prices firm. In inland regions, the market was soft due to slow downstream purchasing. In the major consumption regions, suppressed by off-season demand and substitution by imported beans, prices were weak in the range of Yuan 2.48-2.90/jin. The market players mainly purchased on a hand-to-mouth strategy, with large-scale replenishment proceeding at a slow pace.
Edible Oil: Domestic vegetable oil futures price rose then fell last week, tracking overseas market moves. Spot prices stayed weak due to ample supply. U.S. soybean oil pulled back from highs, while Malaysian palm oil held firmer on robust biodiesel demand. Domestically, large soybean arrivals and high vegetable oil stocks continued to weigh on the market.
Hog: Hog prices rose before pulling back last week. The prices are expected to stay volatile and soft this week With ample supply and weak demand, and no government buying support.
Grain: Corn prices maintained a narrow range-bound adjustment last week. The national corn prices averaged Yuan 2,402/tonne in the session ending May 7, down just Yuan 1/tonne from previous week.
Cotton: Cotton futures gapped up after the holiday on optimism, before easing. U.S. dry weather raised supply concerns, keeping prices high. Downstream off-season has slowed trading. Near-term cotton prices are likely to stay volatile at high levels.
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