The price of edible oil falls, oil enterprises may transform to multi-oil deep processing.

Recently, according to the monitoring results of the National Grain and Oil Information Center, China imported a total of 5684 soybeans from January to October 2014. 400000 tons, an increase of 13.75 percent over the same period in 2013, while the average price of imported soybeans reached a trough in October. The decline in edible oil prices is considered to be the node of industry reshuffle and upgrading. In the future, more oil companies choose "upgrading of oil products" to maintain their competitiveness.

The price of edible oil falls, oil enterprises may transform to multi-oil deep processing.

Industry insiders pointed out that more than 80% of the soybeans used for oil extraction in China are imported, and the price of imported soybeans has fallen sharply since July 2014, while imports have been increasing, which is the main reason for the decline in edible oil prices. The decline in edible oil prices is considered to be the node of industry reshuffle and upgrading. In the future, more oil companies choose "upgrading of oil products" to maintain their competitiveness.

The trend of domestic cooking oil price reduction that began in October 2014 continues and tends to expand.

Reporters recently visited Wuchang Carrefour, Wushang volume vendors and other supermarkets found that at present, including Fu Linmen, golden dragon fish and other brands of cooking oil is still reducing the price promotion, some even reduced by as much as 20%.

According to industry insiders, the reduction in cooking oil prices is mainly due to a sharp drop in international oil raw material prices since the second half of 2014. The current decline in cooking oil prices is mainly due to oversupply, with high soybean production and increased imports in the United States and South America.

A wave of price cuts swept across the country

"We have been adjusting supply prices almost every week recently, and the cumulative price reduction has reached 20% since the Spring Festival this year." On January 3, the relevant person in charge of the edible oil brand Haishi told reporters that since last year, the edible oil market has turned from a bull market for many years to a bear market.

Cooking oil prices began to decline after the National Day in 2013, falling particularly sharply since August and September 2014, falling more than 10 percent, the official said. Including Yihai Kerry's golden dragon fish, Cofco's Fu Linmen, including edible oil leading enterprises have continuously publicly reduced prices.

Since it was announced in May last year that the price of soybean oil had been cut by 15% due to a drop in the price of raw materials, Yihai Kerry announced in October of the same year that the prices of blending oil, rapeseed oil and soybean oil under its Jinlongyu brand had been reduced by 10% to 13%. Fu Linmen also announced a price reduction almost at the same time. "at present, apart from spelling products and services, the most important thing in the sale of edible oil is the price." The head of the sea lion brand said that golden dragon fish and Fu Linmen are the main brands of edible oil in small packages in China, and after they announced price cuts, other brands also had to follow in order to maintain their market share.

But for some packaging edible oil enterprises, follow-up price adjustment is not small. "the feedstock oil ordered earlier has not yet arrived in Hong Kong, and the price has dropped here again. If it continues to fall like this, the survival of the enterprise will be a problem." A distributor engaged in cooking oil wholesale talked about today's edible oil market, some worried.

Because the price of soybean oil is closely linked to the international futures market. At present, several large enterprises generally make profits through futures hedging and other ways to offset spot losses, but for small and medium-sized enterprises, especially those that rely on imported soybean oil for packaging production, it is very difficult.

According to Guo Qingbao, editor-in-chief of China Oil Network, on the one hand, the decline in the price of raw oil is related to the international market. 80% of China's soybeans used as edible oil are imported. Earlier, the United States announced that soybean production in the next two years would be a record. Soybeans from South America and Canada were also high, and the global soybean output was a record. On the other hand, it is also related to the oversupply in the domestic market. "the soybean meal produced by imported soybeans in the process of oil extraction is an important source of feed, and the demand for soybean meal is still growing steadily in the past two years." crushing enterprises still import large amounts of soybeans, resulting in an oversupply of oil and fat. "

Guo Qingbao said, for example, according to customs statistics, imports of soybeans reached 62.87 million tons from January to November 2014, an increase of more than 10 percent over the same period in 2013, but the total amount of imported vegetable oil decreased by more than 10 percent compared with the same period last year. From 7.3 million tons in the same period in 2013 to 6 million tons, indicating that the domestic market demand for soybeans exceeds oil.

Transition to multi-oil deep processing

On the one hand, supply remains high, on the other hand, demand is weakening.

In recent years, due to the rapid development of small varieties of edible oil such as sunflower oil and corn oil, the market of soybean oil has been squeezed and the growth rate of demand is slowing. Although the decline in the price of soybean oil will be a drag on other small varieties of oil, enterprises can still profit from small varieties and high-end edible oils, which has prompted many edible oil companies to vigorously develop a variety of oils in recent years.

In fact, since 2013, the domestic edible oil industry has set off three consecutive price cuts, but high-end oil and healthy oil have not been affected. The reporter saw at the Carrefour supermarket in Wuchang that the price of high-end oil such as sunflower oil remained unchanged, and Duoli's pure sunflower oil (4 liters) was only symbolically reduced by 0. 5% in this round of price cuts. 1 yuan.

A senior person in the industry said that the decline in cooking oil prices is seen by the industry as a node for industry reshuffling, upgrading and raising public awareness of healthy oil use. In the future, more oil companies will choose "oil quality upgrading" and multi-oil strategy.

This person's analysis has been recognized by the market. Affected by the decline in the price of edible oil, the corn oil market is also sluggish. Xiwang Food, which focuses on corn deep processing, has launched two new products, olive corn oil and sunflower seed oil, this year.

Golden arowana has taken the lead in the multi-oil strategy. Tao Xi, director of the Golden Dragon Fish Brand Management Department, said that the non-genetically modified edible oil goldfish provides 23 kinds of products, such as goldfish corn oil, sunflower seed oil, phytosterol corn oil, peanut oil, rice oil, camellia seed oil, olive blend oil, small canola oil, sesame oil and so on. "We fully meet the increasingly diversified product needs of consumers with the most abundant varieties, and reap the greatest market returns." Fengyi International, the parent company of arowana, ranked 239th in the 2014 Fortune 500 list, ranking third in the global food production industry. This is Fengyi International has been ranked in the top three in the global food production industry for three consecutive years since 2012.

The relevant enterprises that rely on soybean crushing to contribute to the performance have also begun to pay attention to the development of multi-variety, small and medium-sized packaging edible oil. Dongling Cereals and Oils said it will speed up the development of high value-added products related to soybean processing, such as medium-packaged oil products, including soybean oil, palm oil and blended oil, develop small package oil brand products and increase investment in specialty oil production. In the first half of 2014, the soybean crushing industry suffered heavy losses, with Dongling grain and oil losing as much as 341 million yuan. The main reason for the loss is that the purchase of raw materials pressed by soybeans is seriously linked to the sales price of finished products in the first half of the year.

No obvious rebound is expected in the short term.

Recently, according to the monitoring results of the National Grain and Oil Information Center, China imported a total of 5684 soybeans from January to October 2014. 400000 tons, an increase of 13.75 percent over the same period in 2013, while the average price of imported soybeans reached a trough in October. According to statistics from the General Administration of Customs, the average price of imported soybeans fell to 3268 yuan per ton in October 2014, down 4. 5 percent from the average import price of 3417 yuan per ton in September. 36%, the lowest since early 2012.

Zheshang Futures report pointed out that the current pressure on the three major oil stocks in China is still large. As of December 2, 2014, palm oil stocks in domestic ports were 59. 5%. 600000 tons, soybean oil commercial inventory 1.21 million tons. Inventories face the threat of a rebound in the expectation of an increase in the overall supply of oil.

Industry insiders pointed out that the oil inventory pressure may not improve until the spring of 2015 when the demand for oil in small packages starts. Generally speaking, consumer demand for oil will be significantly boosted within a month or two before the Spring Festival, leading to a rebound in prices. There will be a leap September in 2014, and the Spring Festival will be delayed than in previous years, when the process of oil destocking will be accelerated, which will support oil prices.