Soybeans and rapeseed are falling, despite high prices for vegetable oils
the vegetable oil to remain high, primarily due to the quotations of palm oil in the last 10 days recovered to the highest February level.
the Prohibition of the President of trump to conclude any agreements with the Chinese companies own a mobile apps WeChat and TikTok, who were the objects of investment by American companies increased the tension between the two countries. China is slowly buying us agricultural products, which puts pressure on prices of soybeans and soybean oil in the United States.
Futures on palm oil in Malaysia on Friday declined, while the results of the week grew by 3% to 2758 Ringgits/t or 659 $/t. the Market is supported by speculators and a possible reduction in production and stocks of palm oil in Malaysia amid increased exports. This week will be released monthly report of the Board of Malaysia palm oil (LRAS) and the balance of the USDA, which will significantly affect the price of vegetable oils.
Futures for soybean oil in the United States on Friday declined 1.6% to 680 $/t after the fall in soybean prices by 1% to 319,3 $/t, which depreciates despite a good export sales for the week amounted to 1,116 million tonnes, of which China has sold 864 thousand tons.
Because of the high prices decreased demand from buyers, so on the physical markets, the prices of Argentine soybean oil in the end of the week fell by 10-15 $/t to 735-745 $/t FOB, on the Ukrainian sunflower oil with delivery in October-November – $10/t to 770-780 $/t FOB.
the price of rapeseed oil in the Netherlands remained at the same level 775-785 €/t FOB. The depreciation of the Euro 1,179 up to $/€ increases the competitiveness of European grain on the world market. However, the November futures on MATIF rape on Friday has decreased on 2,25 €/t to 377,25 €/t, and in dollar terms – to 444,8 $/t
This week the markets will be influenced by the updated USDA report, which can be improved forecasts of soybean production and reduced estimates of rapeseed production.
