A sharp rise in the price of palm oil supported the prices of oilseeds

Yesterday, after the release of data on a reduction in palm oil production and reserves in Malaysia, October futures for it on the Kuala Lumpur Stock Exchange rose immediately by 7.4% to 4,511 ringgit/ton or 1 1,065/ton, approaching the highest values of the last year.

An additional factor influencing prices remains the spread of the Delta coronavirus strain in Indonesia and Malaysia, which may lead to increased quarantine and further reduction in production due to a shortage of workers.

According to the MRO report, palm oil reserves in Malaysia at the end of July decreased by 7.3% compared to the previous month to 1.496 million tons, and production in July decreased by 5% to 1.52 million tons.

In the current season, rising prices for palm oil have often driven the rise in prices of neighboring soybean and sunflower oil markets.

On the Dalian stock exchange, palm oil futures also rose 5% to 1 1,320/ton yesterday, while soybean futures rose 2.8% to.1,430/ton.

On the Chicago SWOT, October soybean oil futures rose 1.6% to.1,360/ton yesterday, but further growth stopped in anticipation of the updated USDA vegetable oil balance, which will be released today.

Demand prices for Ukrainian sunflower oil from the new crop increased to F 1220-1240/ton FOB, so forward prices for sunflower with delivery to the plant approached the level of 5 580-600/ton (including VAT).

Purchase prices for Ukrainian rapeseed are also growing and have already reached 6 630-640/ton with delivery to the port or border.

Prices for non-GMO soybeans delivered to the port or border have increased to 6 620-630/ton, while for soybeans with GMOs in the port they offer 5 500/ton.

Forecasts of an increase in the sunflower crop in Ukraine and Russia do not yet exert seasonal pressure on prices, and the rise in the price of vegetable oils will support prices at the beginning of the season at a high level.