November 13, 2008
Prices of second-grade soy oil averaged RMB8,066.67 per tonne in major Chinese grain wholesales markets in late October, inching up 1.35 percent from mid October.
As raw materials prices rebounded recently and prices of soy oil futures are likely to rebound after hitting the bottom, Chinese soy oil prices are predicted to level out after falling for thee months and stabilise in early November.
Besides, though the Chinese government started acquiring rapeseed oil for state reserve in major producing areas to bolster up the product prices, average price of second-grade rapeseed oil still slipped by 1.98 percent from mid October to RMB9,038.15 per tonne in late October.
As Chinese rapeseed producers are running short on cash, Chinese rapeseed oil prices are predicted to continue decreasing in early November but would soon hit rock-bottom.
Moreover, Chinese palm oil prices are not likely to increase in early November due to sluggish demand, but the markdown would not be huge, as prices have already reached a record low in recent two years.