Soybean: State reserve soybean auctions sold out above expectations, boosting market confidence. Old-crop soybean supply has kept shrinking; new soybeans are in late pod filling, with frost hype cooling. Downstream buying has stayed cautious.
Edible Oil: Last week, the domestic vegetable oils market rose first and then fell. Early in the week, strong bullish expectations for the USDA report and strong crude gave domestic oils strong upward momentum. But Malaysia's MPOB report showed higher-than-expected Malaysia palm oil inventories and production, weakening BMD palm oil prices and lowering import costs. Meanwhile, commodities broadly fell on US Fed rate hike expectations. Domestic vegetable oils futures are expected to be slightly weak in the short term, while the long-term bullish view remains unchanged.
Hog: Hog futures kept falling on ample supply, rising feed costs, and faster slaughtering. Piglet restocking sentiment was weak. The market is expected to stay soft.
Grain: National corn prices slightly went down last week. Northeast prices were stable; North China fell faster on high inventories and new-crop arrivals. Feed buyers purchased cautiously. Short-term prices are expected to be slightly weak.
Cotton: New-cotton supply pressure and a weaker U.S. market weighed on cotton prices. Players are advised to watch production pace and downstream orders. Cottone prices are expected to stay between Yuan 16,000-17,000/tonne this week.
