China’s rapeseed oil stocks fell more than 8% in a week

A sharp decline in rapeseed oil warehouse stocks has been recorded in China. As of January 23, total stocks in key regions of the country fell to 254,500 tons. Over the reporting week, this figure fell by more than 21,000 tons, equivalent to a decline of 8.4%, according to SunSirs, a China commodities research center.

The sharp reduction in storage volumes is reported to signal a tightening of supply in the Chinese domestic market. This situation is creating favorable conditions for rising spot prices and fueling investor interest in further purchases. The rapeseed oil contract closed yesterday’s trading session up 49 yuan per ton. The rise in the price of the most liquid contracts confirms market participants’ expectations of a continued shortage.

Experts believe that news on inventory dynamics in China will continue to provide significant support to global vegetable oil prices in the short term.

Tags: China, rapeseed oil