Shouchuang Futures: Profit-taking, palm oil slightly retraces

Today, domestic oilseed prices generally experienced a slight pullback, with the recently strong-performing palm oil leading the decline. Overnight, U.S. soybean oil surged then retreated, with profit-taking causing a small correction. International crude oil prices strengthened overnight and during the day, as Iran and the U.S. respectively seized ships, but the probability of short-term negotiations remains limited. However, the rise in crude oil has limited positive impact on the oilseed market. Fundamentally, Malaysian spot supply and demand data still show no improvement, and the market is concerned about inventory increases in April. Overall, after the improvement in U.S. soybean oil fundamentals, Indonesia’s B50 policy, and the continuous hype around El Niño boosting oilseed prices, there is a lack of further driving factors in the short term, leading to a profit-taking-driven small correction in the market. Going forward, attention will mainly focus on whether the favorable expectations for raw material supply and weather conditions are realized and when the fundamentals will show substantial improvement. Maintain a medium- to long-term view of moderate strength and volatility for palm oil, with cautious holding of long positions in the early stage. (First Capital Futures)