Domestic soybean oil basis quotes decline while spot prices rise following the futures market

Yesterday, domestic soybean oil futures closed higher. The ongoing escalation of conflicts in the Middle East has caused international energy prices to surge. Coupled with optimistic expectations for U.S. soybean meal policies, soybean oil prices remained volatile at high levels, driving up domestic soybean oil futures prices. On March 3rd, the main contract of Dalian Commodity Exchange soybean oil 2605 closed at 8,350 yuan/ton, up 90 yuan/ton or 1.09% from the previous trading day, and up 210 yuan/ton or 2.58% from the same period last week, reaching a new high in over a month. Domestic soybean oil basis quotes declined, while spot prices followed the market upward. Recently, soybean oil futures have continued to rise along with international oil prices, putting pressure on the basis and causing it to decline; spot market trading has been light, with limited inventory reduction, and prices fluctuated accordingly. On March 3rd, coastal region national standard Grade 1 soybean oil quotes ranged from 8,520 to 8,840 yuan/ton, up 40 to 160 yuan/ton compared to the same period last week; spot basis quotes Y2605+230~500 yuan/ton declined by 20 to 140 yuan/ton from the same period last week. (National Grain and Oil Information Center)