The rising oil price supports the price of vegetable oil

2020-05-18 12:17:33
Machine translation
The rising oil price supports the price of vegetable oil

Oil prices on Friday continued rapid growth, against the background of zeroing Malaysia export duties on palm oil and containing manufacturers sales of soybean and sunflower led to higher prices for vegetable oils.

 

Brent crude on London's ICE Futures on Friday rose by 6.4% or $2/barrel to 31.57 $/barrel, while June futures on American WTI on the stock exchange in new York rose 10% or of 2.94 $/barrel to the highest since March 17, the level of 30.7 $/barrel.

 

Traders do not pay attention to the warnings of the U.S. Commission on commodity futures trading (CFTC) about a possible fall in oil prices to negative values, since the validity of the contracts for June delivery of WTI expires on may 19. So the situation could repeat last month, the last trading days of the may contract price for the American WTI fell to minus 37,63 $/barrel.

 

Malaysia Announced the reduction from June, the export duty on palm oil from 4.5% to 0%, which will increase its competitiveness compared to Indonesian for $25/ton led to the rise in futures on Friday by 3% to Ringgits 2091/t or 480,9 $/t, and the total weekly growth was 3.5% and was the largest since March.

 

Futures for soybean oil in the US, rising for a second straight session on Friday rose another 1.2% to 591,9 $/ton, despite the tense relationship with China and increased supplies of soy oil in the US to 958 thousand tonnes compared to 863 thousand tons in March.

 

the price of soybean oil in Argentina, after three days of gains on Friday reached a month high 595,5 $/t FOB Up River, adding per week 30 $/t, as producers hold back sales through low prices, despite the completion of harvest of soybeans.

 

Prices demand for soybeans in US and South America remain at a low level 330 to 335 $/MT FOB, as the volume of proposals is increasing, and importers have accumulated the necessary supplies cheap Brazilian soybeans.

 

Following the markets for palm and soy oil prices on the Ukrainian and Russian sunflower oil rose to 705-720 $/MT FOB Ukraine and 690-700 $/MT FOB Russia amid increased demand from India and Turkey.

 

as a result of reduction of stocks of sunflower seed in Ukraine and Russia, caused by the increasing processing and export of sunflower oil, purchase sunflower prices are rising, while in Ukraine, some processors stopped purchases, having saved enough for the end of the season stocks of raw materials.

 

the Purchase price of sunflower seed in Russia, despite a ban on its export, reached a record high from September 2016 level 24000-24500 tonne or 322-333 $/t FSA.

 

Turkey has a large obligation to export refined deodorized oil, so after the restriction of deliveries of Russian sunflower has increased the demand for sunflower oil.

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