Markets of palm and soybean oil did not deter the fall of prices for sunflower oil
the vegetable oils Market was suddenly to keep from falling on the background of a sharp decline in oil prices and decrease in quotations of soybean and palm oil on the stock exchange in China.
the Decrease in palm oil production in Malaysia in January compared to December by 4.3% supported by quotations in Kuala Lumpur, which, after falling 9% last week, rose yesterday by 0.4% to 2613 Ringgits/t or 635,11 $/t
In the other direction was trading on Chinese exchanges that opened yesterday after the long weekend under the pressure of panic. The Shanghai index showed the 2015 drop, falling by 9%, while contracts for soybeans and palm oil in Dalian has fallen by 7%.
Futures Brent crude falling for a fifth consecutive session, and yesterday fell to a yearly low of 54.7 $/barrel.
market Trends of palm oil in recent times contradict the fundamental factors. Now traders raise prices amid predictions of reduced production in Malaysia and Indonesia.
According to experts palm oil Association of Indonesia (GAPKI), the country increased production of palm oil from 43 million tons in 2018 to 47.1 million tons in 2019, and export reached a record 36,18 million tons in 2020, However, production could be reduced due to dry weather conditions.
while Traders do not take into account the possible reduction in production amid rising prices compared to soybean and sunflower oil and spread coronavirus which, following India ability watered from China.
India has raised the import duty on crude palm oil from 37.5% to 44%, and left unchanged tariffs on other food oil, which could increase demand for soybean and sunflower oils.
Futures for soybean oil in the United States after a previous 4-day drop yesterday rose 1% to 675,5 $/ton following the increase in prices for palm oil and soy. The soybean market was supported by increased exports of soybeans from the U.S. for the week by 30% to 1.36 million tonnes, of which 40% was shipped to China. However, reduced demand from China in the near future UPort soybean exports.
Brazil in January has reduced compared to last year, exports of soybeans by 27% to 1.49 million tons for the delay harvesting of soybeans of the new crop. According to AgRural, soybeans collected on 9% of the area, which is 10% inferior to last year's figure, but corresponds to the average 5-year level. It is expected that in February exports of soybeans exceed the level of last year – 5 million tonnes, which will increase competition with U.S. soybeans.
Despite the rising prices of palm oil in Malaysia and soybean in the US, the bid prices for sunflower oil in Ukraine has dropped to 710-720 $/t FOB, while the price proposals remain at the level of 735-745 $/t FOB for supply to Bersin and 745-750 $/t FOB – in the 2nd quarter. Buyers are holding back purchases in anticipation of further price declines.
