The price of rapeseed oil has recently risen, and the government will also start directional sales of edible oil.

On April 12, at the National Temporary Storage Oil Auction, the relevant departments sold 99,668 tons of rapeseed oil and all transactions were completed. The average transaction price was 9,600 yuan/ton. Compared with the auction on March 29th, both the turnover rate and the average transaction price of the auction increased, with the average transaction price rising by RMB 319 per ton.

"Daily Economic News" reporter learned from a rapeseed processing enterprise in Hubei that the output of rapeseed is only 10 million tons per year, and the processing capacity of rapeseed is about 60 million tons. The output reduction is expected to result in processing enterprises with serious excess production capacity. The competition is fiercer, and it will be transmitted to the current rapeseed oil bid.

It is understood that the decline in rape planting area is also a key factor in the tight supply of rapeseed oil. According to statistics, from 2011 to 2012, it is expected that the national rapeseed sown area will fall by 6% to 7%, and the total output will decline by about 10% on the basis of 2010, which is estimated to be about 9.06 million tons.

Under the expected production cut, the situation of the plant rushing to buy rapeseed will still be staged this year. The situation of rapeseed purchase in 2011 is still grim. In order to eliminate market price increases early, industry insiders believe that the State Reserve will sell soybeans at a low price in an attempt to stabilize domestic edible oil prices and safeguard raw material supply.

"From 2010 to 2011, China's rapeseed oil imports will reach 1 million tons, but the increase in imports will hardly make up for the decline in production, and we expect the new supply to continue to decrease," said Zhang Liwei, the National Grain and Oils Information Center.

So, can we speculate that the rising price of edible oil in China is difficult to resist?

“A series of national policies are mainly focused on suppressing prices, and the price of rapeseed oil is rising in the near future. However, in the coming period, under the control of relevant national policies, there will be an iterative process, but It will eventually stabilize," said Li Dazhao, director of the British University Securities Research Institute.

A number of market participants disclosed to the Daily Economic News reporter that in order to ensure the stable and continuous supply of edible oil prices, the Chinese government may also start directional sales of edible oil in the near future.