Soybean: DCE No.1 soybean September contract closed lower last week. Auction results disappointed: Jiusan Group saw low participation, while provincial and Sino-Grain reserve clearance rates were just 46% and 53%, respectively, weighing on sentiment. Summer off-season demand weighed on spot activity. However, new-crop seedlings face weather uncertainty and reduced planted area, with high input costs providing underlying support.
Edible Oil: DCE edible oils futures traded rangebound. Prices initially rose on a bullish USDA report (U.S. ending stocks at 310 million bushels below expectations) and weather concerns in U.S. producing areas, but gains were erased by technical pullbacks and bearish domestic fundamentals.
Hog: Hog supply pressure increased as slaughter volumes recovered mid-month and southern heat raised African swine fever risks, prompting more sales among smaller farmers. Demand stayed weak due to summer heat. Hog supply pressure is expected to persist this week, with prices facing downward adjustment.
Grain: Corn prices were stable with a weak bias for ample supply and traders' sell-off. And early spring corn emerged in Hubei and other regions, while wheat substitution and policy auctions continued. Corn prices are expected to remain stable but weak.
Cotton: ZCE cotton futures fluctuated around Yuan 16,000/tonne last week amid intensified long-short battles. The reserve cotton auction announcement (starting July 20) increased supply pressure, while downstream spinners remained in off-season.
