The sharp rise in prices of soybean oil was supported prices for soybeans and sunflower
After a long weekend of April futures for palm oil in Malaysia on Monday, after the oil market grew by 4%, but in the US, this day was a holiday, so the price of soybean oil on the stock exchange in Chicago responded to a jump in prices yesterday.
the March futures for soybean oil CBOT yesterday rose 2.7% to 1045 $/t, and the may – 3% to 1029 $/t amid record levels of soybean in the U.S. in January.
According to the Association of processors of soybeans (NOPA), in January, the volume of soybean in the United States reached 5,025 million tonnes, which is 4.2% more than in January 2019 and became the second historic record. Stocks of soybean oil in the United States at the end of January rose to 817 thousand tons compared to 913 thousand tons a year ago.
Increase of soybean in the United States and active export demand growth in soybean prices, despite a slight seasonal decline in demand due to market entry of new crop soybeans from Brazil.
Despite the rapid increase in the price of soybean oil March soybean futures rose yesterday only 1.3% to 509,6 $/t
the April futures for palm oil in Malaysia on Monday rose by 4.3% to 922 $/t, and Tuesday the market has moved to trade the may futures, which rose by only 0.3% to 3535 ringgit/t or 877,5 $/t, which is much inferior in April quotes.
the market crushed the predicted increase in palm oil production in the second quarter and the increase in India from February 15, the base import price of crude palm oil 32 $/t to 1045 $/t on the background of lowering the base price for crude soybean oil by $125/ton to 1103 $/t
In Ukraine, the purchase price of soybeans and sunflowers grow on the background of the shortage of supply and reduced supply to the plants due to difficult weather conditions. Processors offer for soybeans GMO 18800-19000 UAH/t with delivery to the plant, which is equivalent to 570 $/t in the port, while exporting only pay 515-530 $/t. this non-GMO soybean processors pay 19200-19500 UAH/t (590 $/t in the port) and can't compete with exporters who offer for the soy 595-600 $/t
increase of the export prices for sunflower oil in 1310-1330 $/MT FOB has allowed refiners to raise prices on sunflower in 22500-23200 UAH/t (810-835 $/t) delivered to the factory. But to keep refining margin at a high level, the oil should be sold by 1350-1370 $/t FOB, therefore, not all processors can buy raw materials at the highest prices, especially given the decline in prices for sunflower meal after feed wheat and corn.
Traders do not hope for further price increases on the back of the seasonal increase in the soybean complex sentences with South America.
