New rice price trend may depend on policy

New rice price trend may depend on policy Currently, temperatures in southern sales regions are also relatively high, and with more precipitation in the south this year, the storage environment is not conducive to stockpiling large quantities of rice. In addition, the phenomenon of strong rice [paddy] and weak milled rice has made the market pessimistic about milled rice price trends, and processing enterprises' enthusiasm for purchasing and processing is low. Overall, domestically policy-driven paddy rice still faces relatively large inventory pressure. The minimum purchase price has not continued the trend of sustained increases of previous years. It is expected that under the support of the minimum purchase price policy, the market price trend of new rice will basically depend on the policy price, and this year's paddy rice purchasing market may be similar to last year.

Soybean oil will perform better than palm oil in the future Although China's palm oil remains entirely imported, import volumes have noticeably shrunk. In the first quarter, China imported 696,700 tons of palm oil, a year-on-year decrease of 45%. Domestic vegetable oil imports have shown a significant decline, which also confirms that the "financing excess" has been squeezed out of oil imports. In the first 4 months, soybean import pressure was not great, and in the first quarter, China imported 86,200 tons of soybean oil, a year-on-year decrease of 69%, with import dependence far below the historical average. With supply not increasing substantially, some soybean oil replaced palm oil consumption. From the perspective of destocking, soybean oil destocking has been more vigorous than palm oil, and there is greater room for inventories to continue declining, so soybean oil will perform better than palm oil in the future.