The increase in oil prices led to a sharp rise in stock prices of soybeans, rapeseed and soybean oil

2020-11-05 12:06:15
Machine translation
The increase in oil prices led to a sharp rise in stock prices of soybeans, rapeseed and soybean oil

Yesterday's rise in oil prices by 2% led to a rapid increase in prices for soybeans and soybean oil from 4.5%.

 

amid speculative financial growth of the US market and oil prices soybean futures on the stock exchange in the U.S. rose 4.4% to 403,5 $/t. the Quotes support dry conditions in the southern regions of South America, where there is a deficit of moisture, and analysts forecast a lower soybean crop in the US until 114-115 million tons.

 

December futures for soybean oil on the stock exchange in the United States yesterday increased by 4.5% to 771 $/MT, while quotations on vegetable oil on the stock exchange in China rose by only 2%.

 

Futures on palm oil exchange in Malaysia yesterday rose 0.9 percent to the highest since January, the level of 3087 Ringgits/t or 743,5 $/t due to the possible reduction of reserves to 4-year low amid increased exports and reduced production.

 

According to estimates by investment Bank CGS Singapore-CIMB, palm oil stocks in Malaysia at the end of October decreased compared with September by 8% to the lowest since 2016 the level of 1.59 million tons, which is 33% less than the previous year.

 

Reduction of inventory due to lower production in October by 6% to 1.76 million tonnes due to prolonged labor shortages through Covid-19 and an increase in exports by 5% to 1.7 million tonnes due to increased demand from India.

 

February futures on rapeseed on the exchange in Paris, following in soybean prices yesterday rose 2% to 396 €/t or 465,2 $/t

 

Sharp jumps of stock prices is not the result of a real increase in demand on world markets. The main importer of soybeans from the United States – China October 15, buys the soybeans in the U.S. waiting for the results of elections, since in case of victory, Biden, China will probably not have to fulfill their obligations.

 

Experts FAS, the USDA lowered the forecast of soybean imports to China in 2020/21 MG to 95 million tons, which is inferior to the record of 98.5 million tons of season 2019/20. Forecast soybean production for China in 2020/21 MG was reduced to 18 million tonnes, 1 million tonnes higher than the figure recorded 2019/20 Mr.

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