Soybean: DCE No. 1 soybean futures closed higher, which was spilled over to the physical market. On the fundamentals, the farmer stocks cleared, tight margins discouraged sales, and hand-to-mouth buying persisted amid off-season demand, leaving prices range-bound as the market awaits school-term restocking.
Edible Oil: The vegetable oil prices surged, with a synchronized rally across the three major oils, keeping the market sentiment bullish. Bullish factors included tight spot supply of rapeseed oil triggering a squeeze, persistent expectations of palm oil production cuts, and rising soybean futures lifting soybean oil prices.
Hog: China's live hog prices rose 3.67% WoW to Yuan 11.01/kg last week. Hog supply was steady from large farms, while the smaller ones held back sales and awaited further price hikes. Demand improved on school graduation banquets, boosting slaughter volumes. Hog prices are likely to trend higher in the near term.
Grain: Overall grain supply remained ample while corn demand flat. Corn prices are expected to stay weak and rangebound in the near term.
Cotton: Market stayed firm on Xinjiang heat-damage yield concerns and ICE cotton strength. Cotton yarn remained in the off-season, when autumn/winter bedding orders were yet to be released, with current transactions mostly driven by small-lot essential restocking. Price direction hinges on weather/yield outcomes and the realization of peak-season orders.
