Section 1: CPO Price Trend:
China's Palm Oil Import Outlook in 2019
Mr. Cai Neng Bin
He is the General Manager of Shanghai Pansun Company. His roles and responsibilities in the company are analyzing oilseeds and oils and fats market information, with main emphasis given on systematic data analysis and make judgement on market trading pattern. He is also able to gauge the change of medium to long market trends of agricultural products, and provides trading and hedging strategies through capturing price differences arises from logical error within markets, and between different products and months.
As soybean production continue to grow and palm oil stock level remain high, the supply of global oils & fats is still in surplus. At the same time, US-China trade war affected the purchase volume and rhythm of soybean, and formula adjustment in animal feeds as well as the increase import of other oilmeals has changed China structural demand for plant protein. The African swine fever which took place in second half of 2018 also suppressed the scale of livestock expansion, and this resulted in the slowdown in demand for plant protein due to the drop in livestock number.
On the other hand, the expected drop in soybean crushing activities led to the decline in soybean oil supply in China and this resulted in increased oils & fats import. However, the price which is the decisive factor leading to the import is still being strongly influenced by the macroeconomic situation as well as the government policies issued in China. All in all, the supply-demand of palm oil is rather stable in China and crude mineral oil prices will affect the demand for biodiesel, and of course the oils & fats prices. The stock level of oils & fats is expected to the drop due to the structural change in supply-demand balance, and palm oil import in 2019 will be stable.
REGISTER OR LOGIN TO VIEW FULL REPORT
REGISTER OR LOGIN TO VIEW PRESENTATION SLIDES