Egypt's cancellation of the tender will increase pressure on the prices of vegetable oils, especially sunflower oil
The approach of harvesting soybeans and sunflowers against the background of favorable weather for crops increases pressure on the prices of soybean and sunflower oil.
In Russia, in the current season, the area of sowing oilseeds increased by 15% from 14.3 to 16.5 million hectares, in particular sunflower – from 8.48 to 9.64 million hectares, soybeans – from 2.8 to 3 million hectares, rapeseed – from 1.49 to 1.68 million hectares. Thanks to good conditions, sunflower production in the country will grow from 13.5 to 17-18 million tons compared to the previous season.
In Ukraine, according to official data, the area of sunflower sowing remained at the level of 6.4 million hectares, but thanks to significantly better weather conditions than last year, the harvest can grow to 16-17 million tons. this puts pressure on the forward prices of the new crop, which do not exceed 5 560-580/ton with delivery to the plant, although in the season prices reached a record 9 950/ton.
Yesterday, Egypt's GASC canceled an international tender for the purchase of vegetable oils due to high offer prices, although one batch of soybean oil was offered at a price of 1 1,390/ton CFR and sunflower oil at a price of 1 1,280 -1 1,300/ton CFR. At the same time, GASC purchased 3 thousand tons of local soybean oil at a separate tender for delivery on October 1-20 at a price of C 1,250/ton CFR, which is 5 50/ton higher than at the previous auction on June 22, when a large batch of imported soybean oil was purchased at a price of 1 1,184/ton CFR and sunflower oil at.1,133/ton CFR.
An increase in the number of soybean crops in good or excellent condition in the United States for the week by 2% to 60% (compared to 73% last year) yesterday on the Chicago Stock Exchange led to a collapse of November soybean futures by 2.6% to 4 486/ton and December soybean oil contracts by 1% to.1,366/ton.
Experts are raising forecasts for the US soybean harvest, but estimates vary greatly due to the heat and drought in the northwestern United States, which will worsen production compared to previous forecasts. Barchart estimates it at 120.4 million tons, and StoneX – at 117.9 million tons, the USDA in July predicted it at 119.88 million tons compared to last year's 112.55 million tons.
October palm oil futures on the Malaysian stock exchange rose to 4,143 ringgit/ton or 9 981.6/ton yesterday, but overall fell 5.5% since Friday on forecasts for increased production in Malaysia and Indonesia.
The fall in soybean and palm oil markets amid forecasts of an increase in the sunflower crop increases pressure on the prices of Ukrainian sunflower oil, whose supply prices have recently slightly exceeded F 1,200/ton FOB, although demand prices remain lower due to low demand from buyers.
