Soybean: No.1 soybean spot prices were steady last week. While near-term momentum was constrained by off-season demand and lower-than-expected auction prices, the medium-term prices are likely to remain supported by new-crop soybean acreage reduction and production uncertainty.
Edible Oil: WTI crude oil traded range-bound at $68-70/bbl. Domestic edible oils edged higher, supported by cost transmission from the U.S. soybean rebound, though gains were capped by high domestic crush volumes and swelling inventories.
Hog: Hog prices palpably rose last week on tight heavy-hog supply. But hog supply pressure is likely to increase this week, particularly as large-scale farms gradually resume normal slaughter schedules. As a result, market supply will probably rise. Mysteel projects that hog prices may retreat from recent highs this week.
Grain: Corn prices edged slightly lower amid weak demand and substitutes from other cheap grain sources. In this case, the subdued trading point to continued range-bound trading with a weak bias.
Cotton: ZCE cotton futures prices traded firmer, supported by Xinjiang heatwave concerns that may threaten new-crop cotton yields and ongoing domestic cotton inventory destocking that provided a price floor. However, gains were capped by the textile sector's traditional off-season, with downstream mills facing insufficient orders and limiting the purchases to immediate needs, keeping spot transaction volumes lackluster. The macro policy and downstream demand conditions remain key factors to watch.
