Buyers begin to dictate prices in the markets of vegetable oils
As expected, too heated the vegetable oil gradually begin to fall on the background of seasonal growth in production and restrained demand from buyers, which force sellers to reduce prices to enhance sales. Prices for palm oil were the first speculative growth on the data to reduce production and increase in demand, but according to statistics, the production started to grow, and the demand decreased, which resulted in the reversal of the vegetable oil markets.
According to estimates by the Industrial Association of vegetable oils of India (SEA), in September imports of vegetable oils in comparison with the corresponding period last year declined sharply, especially palm 27% to 3-month low of 644 thousand tons (due to low domestic demand), and sunflower, 47% to 66.8 thousand tons for too high prices. At the same time imports of soybean oil increased by 28% to 316,2 thousand tons due to the increase in proposals by Argentina.
Reduction in purchases of palm oil by India, which is its largest importer in the world, led to the decline in palm oil exchange in Malaysia 3.3% to 2776 rmitv/t or 670,86 $/ton, bringing the weekly drop to 8%.
According to the Malaysian palm oil Council (LRAS), in September, palm oil production increased in comparison with August by 0.32% to 1.87 mln t, export – by 2% to 1.6 million tons and reserves – by 1.3% to 1.73 million tonnes, which is 3-month high. However, in the period of October 1-15 palm oil exports in comparison with the corresponding period of September decreased by 2-2,5%, putting pressure on prices.
In palm oil Association of Indonesia said that in August, production of crude palm oil and its derivatives increased in comparison with July by 13.74% to 4.8 million tonnes, although the production volume from January to August 2020 6.7% below the corresponding period last year.
against the background of increasing supply and falling demand quotations of palm oil on the stock exchange in China, which is the second world importer of vegetable oils fell by 3%.
After the price of palm oil futures soybean oil on the stock exchange in the United States fell yesterday by 1.5% to 716 $/ton, while the price of soybeans remains high.
the prices of Ukrainian sunflower oil presses of reduced demand, although they are supported by the slowdown in the production of sunflower. While they remain at the level of 950-980 $/t FOB, although shipments in January and February prices are lower than in the December. The prize for the sunflower oil compared with soybean is 150-185 $/t, and with palm – 250-280 $/t continues to reduce demand.
