Domestic oil prices rise

With the collective limit of U.S. agricultural product futures, the domestic spot market price of oil immediately increased. On the 11th, soybean oil in some areas rose by 350-400 yuan/ton, and a 4% increase in one day basically confirmed that soybean oil prices maintained an upward trend. According to statistics, domestic soybean oil and soybean meal prices rose by double digits in the past two months. Soybean oil prices rebounded quickly According to statistics from the China Feed Industry Information Network, soyoil prices have come out of the low point and entered a period of rapid recovery. Stimulated by the collective limit of the US agricultural commodity futures, on October 11, the major soybean oil trading prices in Heilongjiang such as Heilongjiang Harbin, Liaoning Dalian, Jilin Siping and Jilin Changchun all rose sharply. Taking Harbin in Heilongjiang Province as an example, on the 11th, the price of soyoil has risen to 9,250 yuan/ton, which is up about 12% from the beginning of September. The price of soybean oil in East China, North China, and South China is similar to that in Northeast China. Taking Grade 4 soybean oil as an example, Shandong Boxing Fourth Grade soybean oil was 9,100 yuan/ton, up 10.3% from the end of September. Soybean meal prices have followed up soyoil prices. China Feed Industry Information Network statistics show that Shandong Jining soybean meal offer 3,650 yuan / ton, compared with the end of September rose 7.988%, compared with the end of August rose 16.98%. COFCO's market analysts said that the price performance of the domestic oil industry is, in the final analysis, inseparable from the price of soybeans. This year, the planting area of ​​soybeans in Heilongjiang Province was reduced by 692 million mu compared with 2009. From the consistent policy of protecting the income of farmers in the country, the domestic soybean collection and storage policy may continue to be implemented this year. This will give soybean prices a certain level of policy support. The profitability of oil and fat companies has improved. After undergoing adjustments in the past two years, the global market for edible oils and fats and oils has entered a period of recoverable growth. According to the above-mentioned sources from COFCO, China's edible oils and fats and oil products market has completely outperformed in the second half of this year, and the industry’s profits are improving significantly. With the support of global soybean prices, the recovery of the edible oil market is expected to continue. As the profitability of the industry recovers, the profitability of the relevant manufacturers has come to an end. Dongling grain and oil related persons told this reporter that Dongling grain and oil began to shift from rough processing of soybean with low gross margin to deep processing with high gross margin. In September this year, Nissan's 1,000-ton refinery production line has begun trial operation, and it plans to reach production and produce first-grade refined soybean oil before the end of the year. The source said that with the price of soybeans rising, Dongling Grain and Oil will raise the price of soyoil. Given that Dongling Oil has stored a lot of soybeans at a low price, it is expected to further increase its profitability. The Huatai Securities analysis report believes that the oil industry is becoming the final value of agricultural products. Since the beginning of this year, the prices driven by price hikes for seeds and aquatic products have risen significantly. In contrast, the price of soybeans and the processing of grain and oil processing sector are behind, and it is expected that the Dongling Grains, Oils and Jinde Development will benefit.