Strong demand from China continues to heat up the vegetable oil

Friday prices for vegetable oils continued to rise on the rumors about the future intentions of China to increase reserves of all agricultural products.

So, next year the state stocks of soybean oil in China is expected to increase to 2 million tonnes, and to increase the reserves of soybeans and corn. Experts believe that the buildup of China's reserves in case a second wave of the pandemic Covid-19 can reduce the world's food supply.

the Main reason for the increased demand for soybeans and meal, and corn has been a sharp increase in the number of pigs in China.

According to the Ministry of agriculture of China, the number of pigs in the country rose in August compared to July by 5%, which is 31% higher than August 2019.

amid a rise in price of soy beans and oil on US exchanges last week on Friday, soybean futures and soybean oil on the Chinese exchanges grew by 2%, and corn has even reached 9-year high.

Markets supported the rise in futures on palm oil exchange in Malaysia on Friday at 3.5% to 3080 Ringgits/t or 749,03 $/t and in total during a week – 9.6%.

quotation of soybean oil in the United States on Friday began to decline after rapid growth the day before, but, with the rapid rise in price of palm oil has recovered almost to the previous level, although in the end of the day, fell 0.6% to 776 $/t

On the physical markets, soybean and sunflower oil, the rapid growth of prices stopped, because customers expect a seasonal decline in prices and delay purchases. Prices on Argentine soybean oil for the last 7-10 days has increased to 40-50 $/ton to a maximum level of 830-840 $/t FOB UA River.

Prices for Ukrainian sunflower oil will remain at the level of 980-1030 $/t FOB, however, spot prices demand does not exceed 980-990 $/MT FOB, while prices of demand for late delivery gradually drops to levels last week.