Lang
China's commercial inventories of the three major vegetable oils are continuing to climb, weighing on both domestic spot and futures prices, according to data cited by UkrAgroConsult.
As of August 21, combined stocks of soybean, rapeseed, and palm oils reached 2.55 million tons, based on figures from China's National Grain and Material Reserve Data Center.
The build was broad-based: inventories rose by 60,000 tons week-on-week, 120,000 tons month-on-month, and 140,000 tons year-on-year. They were also 370,000 tons above the three-year average for the same period, underscoring the depth of the current oversupply.
Rapeseed oil remains the most exposed segment, with ample supplies and elevated stockpiles pressuring both spot and futures prices. Market analyst SunSirs described the inventory backdrop as bearish for the broader market.
Soybean oil is facing a similarly loose supply-demand balance, which is limiting any meaningful price support. Palm oil, meanwhile, continues to come under pressure from abundant supplies, making a significant short-term price recovery unlikely.
Taken together, the rising stocks across the three main vegetable oils are creating a clearly bearish environment in China. As long as inventories remain elevated, the potential for a substantial price recovery is expected to stay limited.
UkrAgroConsult, with nearly 30 years of experience in agricultural markets, has built an extensive database that underpins its AgriSupp platform. AgriSupp is a multifunctional online market intelligence tool for grains and oilseeds, providing daily operational data on Black Sea and Danube markets, alongside analytical reports and historical datasets.
Source: UkrAgroConsult