Multi-brand edible oil prices down

The edible oil that has been rising for two consecutive years is entering a price cut channel. According to monitoring data, the price of various edible oils has declined since late April. Compared with April 20 of this year, the prices of pure soybean oil, soybean blended oil, peanut blended oil, pure sunflower oil and pure rapeseed oil fell by 0.6% on May 4. Under the leadership of the industry giants, reducing the price of major edible oil varieties by more than 15% will become the mainstream trend.

The edible oil prices of many small and medium-sized supermarkets in Shanghai have been reduced. According to Ma Wenfeng, an analyst at Beijing Oriental Agri Foods, the reason for price cuts is related to the recent weakness in the catering industry, in addition to the cost factors such as the decline in soybean import prices.

Many brands have cut prices

Yesterday, the reporter visited a number of small and medium sized supermarkets in Shanghai, such as Nonggong Industry and Commerce, and saw Jinlongyu soybean oil, sunflower oil, and Jinlongyu corn oil all promoted. "To buy a barrel of 5 liters to send a bottle of 1 litre as long as 79.9 yuan, it's a good deal." ABC commercial salesman told the "International Financial News" reporter said.

The reporter learned that from the middle of April, Golden Dragon Fish fired the first shot of price cuts, and lowered the prices by 15% and 8% respectively in soybean oil and blend oil, two of the most important edible oil varieties. According to Jinlong fish producer Yihai Kerry, the media revealed that the price adjustment is nationwide, and that the adjustment of prices from production companies to distribution channels, wholesalers, and terminal stores takes a certain period of time, that is, After May Day, the price reduction trend will be transmitted to the final retail sector.

At the same time, China National Grain Storage Corporation also adjusted the standard prices of its soybean oil and edible blend oil, and dropped by approximately 15% and 8% respectively on the basis of already relatively low prices, and synchronized with Jinlongyu on a price reduction basis. Prior to this, the price of the Zhongding Food Jinding Leather brand has been followed closely by the strategy and insisted that the price of similar products is lower than that of other major brands.

Another major company in the edible oil market, COFCO, has cut its prices even more. At the end of April, Fook Lam Mun Edible Oil took the lead in lowering the prices of soybean oil and blended oil products that were greatly affected by the drop in raw material prices. The price cut was 16% for soybean oil, and 9% for oil. For other oils, there is no price reduction plan because raw materials fluctuate little.

In addition to the oils of the above major brands, the prices of peanut oil and sunflower oil from other brands, such as Luhua and Duoli, have also declined slightly, and the edible oil market seems to have begun to set off a drop in price.

Ma Wenfeng pointed out that major brands in the edible oil market have lowered their prices, which is also an indication of mutual competition for market share by price.

The cost reduction is the main reason

Regarding the downward adjustment of edible oil prices, Ma Wenfeng said in an interview with the “International Financial News” reporter that the downward adjustment of edible oil prices was caused by the continued decline in the price of soybeans in the international market, especially in the South American countries such as Brazil and Argentina. The increase. "And recently, the international economic situation has tightened, and the prices of refined products such as refined oil have fallen. The price of cooking oil will inevitably have an impact under such a macroeconomic situation."

Since 2013, the main soyoil price has dropped from 8,900 yuan to 7,600 yuan per ton, a decrease of 14.6%. According to the reporter's understanding, due to the low yield of soybean oil and poor agricultural planting, the domestic oil and oil supply growth has been sluggish, and imported soybeans have become the collective choice of Chinese edible oil companies.

“This has led to a high degree of foreign dependence on the Chinese market. The volatility of edible oil affected by the international market and raw material prices will also be greater.” An industry source pointed out that the United States has repeatedly forecasted that soybean production will be reduced due to weather reasons. To increase soybean prices, leading to rising domestic edible oil import costs. The development of raw materials in South America today is of great significance to Chinese companies.

Edible oil welcomes "drop tide"?

Some industry analysts stated that starting from the beginning of this year, the prices of raw materials in the international and domestic markets began to fall. At the same time, the summer season is the off-season sales of edible oil. Demand reduction will also have a down-dip effect on prices. The price drop may come in mid-May.

“This may not be the case.” Mr. Wang told the International Finance News reporter that the most price-reduced category was soybean oil and blending oil. This is the edible oil that most people eat the most; but now peanut oil, corn oil and other high-end The price of oil products has not dropped much. Shanghai is mostly a promotional activity, and of course it does not rule out adjustments in the future.

“The possibility of falling prices is yet to be discussed.” Ma Wenfeng pointed out that due to the fall in international soybean prices, soybean oil prices have been adjusted. However, in domestic agricultural products, the prices of corn and wheat have not decreased. Other edible oils, such as corn oil, are only due to the adjustment of prices due to sales, and the drop in prices may not be coming.