Soybean: The auctions of provincial reserves and Jiusan Group's soybean performed poorly last week, with 0% and 11% transaction rates, respectively, dampening sentiment and capping upside. However, old-crop soybean supplies depleted rapidly, with traders holding firm on prices amid the transition to new-crop harvests. Soybean prices are expected to remain range-bound this week.
Edible Oil: Last week, the U.S.-Iran tension drived crude oil prices higher. Combined with strong bullish sentiment from capital flows into vegetable oils, the oil prices traded in a wide range but with a significantly higher price center. Among the three major vegetable oils, palm oil led the gains, supported by multiple bullish factors. Going forward, attention should remain on the price trends of crude oil and palm oil.
Hog: The hog prices rose then fell last week. Slaughterhouses' operating rate went up to 30.67% (+1.06 ppt WoW) on school reopenings, but retail demand remained weak. This week, the hog price are expected to maintain range-bound movements.
Grain: Corn futures strength slightly lifted spot price against the mixture of rising new-crop corn marketing, high traders' inventories, and strong selling willingness. Yet, feed mills purchased as needed; while imports/substitutes curbed the demand.
Cotton: ZCE cotton prices were constrained by upcoming new crop cotton harvest and weak US cotton exports. The state reserve auctions were 100% sold, capping upside.
