The vegetable oil markets remain under pressure lowering grain prices

After a sharp decline in prices for vegetable oils at the end of last week, yesterday in the markets of palm and soybean oil was observed minor adjustments. However, further growth of quotations is limited to a significant drop in the price of wheat and corn, which put pressure on the price of oil, cake and meal.

against the background of large volumes of proposals forage demand is reduced as a result of too high prices as buyers keep the purchase with the increase in the crop prospects in South America and the countries of the Northern hemisphere, which led to lower prices for corn and wheat, and, as a consequence, for a meal.

Soybeans in Brazil is collected on 71% of the area, behind last year's 76%, but higher than the average 5-year level of 70% on this date. Dry weather in the next 7-10 days will speed up cleaning a record soybean crop (133-135 MMT), which will increase the supply on the world market.

pressure increase proposals South American soybean oil quotes for her in Chicago on Friday declined to $1150/ton, although last week reached the highest since 2011, 1280 $/t

Yesterday may futures for soybean oil rose 1.3% after the price of oil, and palm oil, but their growth has limited the fall in soybean prices by 0.9% and soybean meal 1%.

June futures for palm oil in Malaysia in the last two days of last week rose by 6.2% to 3692 ringgit/t, but yesterday recovered by 1.5% to 3747 ringgit/t or 905 $/t on the data to reduce rates of increase in production.

According to the Association SPPOMA for 25 days of March palm oil production in Malaysia increased in comparison with the corresponding period of February 27%, whereas as of March 20, the ratio was 40%.

On the stock exchange in Dalian futures palm oil yesterday fell by 2.4% to 1143 $/ton, and soy – 2.1% to 1321 $/t, which indicates a decline in the purchasing power of the world's main importer.

In Ukraine, the price of sunflower oil after rising the previous week again fell to 1500-1550 $/t FOB with the decline in demand, but offers such a price level is almost there.

the Producers stopped the implementation of the sunflowers, because they do not wish to sell it at 23000-23500 UAH/t with delivery to the plant, given the fact that recently, the prices reached 27000 UAH/t.

the introduction of the Russian authorities from 1 July duties on sunflower by up to 50% and from 1 September to a tax of 70% of the difference between the market price (according to Reuters), and the minimum would be $1,000/ton, can lead to reduction in the area of sowing of sunflower in the new season, as the profitability of its cultivation will fall, as has occurred with wheat after the introduction of 70% export duties on the price is above $200/t