The heat continues to heat up prices for oilseeds
Prices of oilseeds and vegetable oils continue to rise due to continuous drought in U.S. and black sea region, as well as shortage of rain in Brazil before sowing soybeans new crop, and at the start of the harvest close to record levels.
the Markets for soy and palm oil compete with each other. If Monday rose sharply soybean oil, on Tuesday began to rise prices for palm, while soybean fell back down, and on Wednesday, soybean oil again rose in price along with palm.
Increase in stock prices has forced buyers to step up purchases on the spot markets, which strengthened demand for Ukrainian sunflower oil. Buyers agree to the high bid prices, not hoping to get this season cheap products. Predictions of harvest reduction in Ukraine and Russia support prices.
Futures soybean oil on the stock exchange in the United States yesterday rose 2.6 percent to 7.5-month high of 744 $/t after the price of soybeans, which on the background of strong imports from China increased by 1% to 353,6 $/t
Futures on palm oil exchange in Malaysia yesterday rose 1% to its highest January level 2811 Ringgits/t or 678 $/t for the market of soybean oil.
Prices on Argentine soybean oil have increased to 770-780 $/t FOB Up River. According to local experts, in this season, the country imports to 5 million tons of soybeans from neighbouring countries to provide processing capacity amid high prices and strong demand.
In Ukraine, the bid prices for sunflower oil have increased to 840-850 $/MT FOB for deliveries in October and November, although the sellers raised the price up to 900-920 $/t FOB.
In Europe, the price of rapeseed oil remained at the level of 780 €/ton, despite the decline in rapeseed production in the EU and forecast of the import. Price growth limits the high Euro exchange rate and low demand for biodiesel.
on data On the slow recovery of the US economy, the world prices for WTI crude oil fell yesterday by 4% to 41.5 $/t, while Brent – up to 44,5 $/t due to low demand for biodiesel increases the pressure on the vegetable oil markets.
