Canola Oil Stocks in China Decreased by 8% in a Week, Affecting Prices

Canola oil stocks in China have significantly decreased over the week, leading to noticeable changes in the market. As of January 23, the total volume of warehouse stocks in key regions of the country has dropped to 254,500 tons. Over the week, this figure fell by more than 21,000 tons, representing a decrease of 8.4%.

This is reported by AgroReview

Declining Stocks Stimulate Price Increases

Analysts note that the sharp reduction in storage volumes indicates a surge in demand in the domestic market of China. This creates conditions for an increase in spot prices for canola oil and enhances investor interest in further purchases. Following the latest trading session, the contract for canola oil rose by 49 yuan per ton. The increase in the prices of the most liquid contracts confirms market participants’ expectations of a potential further shortage of the product.

“As noted, the sharp reduction in storage volumes signals a tightening supply in the domestic market of China. The current situation creates a favorable environment for rising spot prices and fuels investor interest in further purchases.”

Impact on the Global Oil Market

Experts believe that the current trend of declining stocks in China will soon become a significant factor supporting oil prices globally. This could affect the market situation not only in China but also on a global scale.