Strike and dry weather in Argentina supported soybean prices and oil
Friday prices for soy beans and oil on the stock exchange in the United States rose sharply amid a prolonged strike in Argentina and higher prices of oil. So, quotations of oil of mark Brent rose on Friday to its highest since March 2020 level of 52.4 $/barrel. Forecast slight rain in Argentina during the week raised concerns about the fate of soybeans.
In Argentina for the past two weeks on strike the workers of the port of plants for the processing of oilseeds, which require higher wages, which stopped the export of soybean meal and oil. The port has accumulated more than 100 ships for loading, however, the port does not accept truckloads of soybeans to processing plants located near the port of Rosario, which provides 80% of export of agricultural production of the country.
the January futures for soybean meal on the CBOT in Chicago for two sessions, rose by 4% to of 405.5 $/t for the first time since may 2018. crossing the mark of $400/ton, leading to higher prices for soybeans 2.8% to its highest since July 2014 level 452,4 $/t
Futures on soybean oil for two days grew by 4.3%, for the first time since the July 2014 crossing level 882 $/MT, but later returned to levels of closing of Thursday 872 $/t
Prices on Argentine soybean oil increased to 1000-1050 $/t FOB Up River on the background of difficulties in supply.
On the background of the strike in Argentina and a possible increase in demand due to the reduction of the supply of soy oil, palm oil prices on Friday rose 2% to 3444 Ringgits/t or 852,9 $/t, which corresponds to the beginning of last week and is the maximum of the last 8.5 years.
Following the sharp rise in prices for vegetable oil, Ukrainian sunflower oil will continue to rise. Last week prices rose by 30-50 $/t over the intention of Russia to introduce export duties on sunflower oil.
the Fall in oil prices, caused by the spread in the UK and other countries is a mutated strain coronavirus may significantly change price trends this week.
