Soybean: DCE No. 1 soybean futures closed higher, with the September contract at Yuan 4,998/tonne, up Yuan 123/tonne w-o-w. Persistent rains raised new-crop quality concerns, supporting bullish expectations, while end-user demand stayed weak. The near-term soybean prices are expected to keep rangebound with mild upside.
Edible Oil: Vegetable oils traded sideways early last week, then rallied strongly on joint strength across the three major oils. Rapeseed oil saw a squeeze on tight spot supplies, while palm oil forwards stayed supported by El Niño output fears. Overall, oils remain relatively bullish, with pullbacks seen as buying opportunities.
Hog: Hog supplies from large farms remained steady, with August marketing volumes expected to rise. Tight heavy-hog supplies in the south supported prices, while ample standard hogs capped upside. Slaughter volumes edged up. Looking ahead, the hog prices are seen at Yuan 10.6-10.9/kg.
Grain: Overall grain supply remained ample while corn demand flat. Corn prices are expected to stay weak and rangebound in the near term.
Cotton: ZCE cotton contract closed at Yuan 16,180/t, up 0.19% w-o-w. Xinjiang heatwaves raised new-crop supply concerns, and firmer ICE cotton provided sentimental support. However, state reserve releases capped gains, while textile demand remained in off-season, with hand-to-mouth buying. Hence the cotton prices will likely keep rangebound between Yuan 15,500-16,300/t.
