Soybean: Domestic soybean prices dipped early on overseas weakness before moving higher. Yet, spot sales stayed sluggish. Weaker soybean oil and meal prices prompted the crushers to pause high-protein soybean purchases, while Russian soybean inflows and ample old-crop stocks capped gains. Downstream plants bought only for immediate needs.
Edible Oil: The domestic edible oil prices traded in a choppy range last week, with soybean oil and rapeseed oil prices generally rising, which in turn lifted palm oil prices. However, under the pressure of high edible oil inventories in China and abroad and widespread market expectations of interest rate hikes, the fundamentals for edible oils are bearish. In the short term, edible oil prices are under pressure and in a bottom-seeking phase; a unilateral rally may still require the inventory drawdown for Malaysian palm oil emerges.
Hog: Ample supply and heavy-hog slaughter pressure kept prices soft, while demand stayed lackluster. The standard-to-heavy spread narrowed to Yuan -0.93/kg. Hog prices are expected to run weakly at Yuan 9.5-9.8/kg this week, with limited rebound.
Grain: Large new-crop corn volumes have been flooding the market, while buyers purchased only as needed. Corn prices are expected to fluctuate within a narrow range this week, with limited rebound.
Cotton: Firm seed cotton costs and expected Xinjiang output cuts supported prices, but heavy hedging pressure and sluggish yarn demand capped gains. No clear directional driver exists short term.
