Strikes in Argentina halt falling vegetable oil prices

After the sharp collapse in oil prices, pressure on vegetable oil prices increased, but information about new strikes in the ports of Argentina and the blocking of exports supported soybean oil prices.

In the vegetable oil markets, uncertainty remains with the levels of soybean and rapeseed production in the new season, as the sowing areas in the United States and Canada, although increased, but the dry weather does not yet allow us to count on a sharp increase in production.

According to Agricensis in Argentina, the uocra trade union went on strike, which led to the blocking of the flow of cars to all ports around Rosario, demanding bonuses for annual maintenance of export terminals and factories. Argentina is one of the key exporters of soybean oil, meal and other agricultural crops, so such protests often cause world prices to rise.

Soybean oil prices on the Chicago Stock Exchange bounced slightly on Wednesday and December futures rose 1.7% to п'ятниці 1,318/ton from Friday, losing a total of about 4%. The main factors were the deterioration of the assessment of soybean crops in the United States and the strike in Argentina.

It is worth noting that the same factors limited the level of decline in palm oil prices on the Malaysian stock exchange, where September futures after rising on Monday fell on Tuesday and Wednesday by 2.2% to 3,795 ringgit per ton, or 9 912/ton.

According to a Reuters study, Malaysia's palm oil production increased by 7% to 1.68 million tons in June compared to May, while exports increased by 10% to 1.39 million tons.reserves at the end of the month increased by 7.5% to 1.69 million tons, which is the highest level in the last 9 months.

On the Chinese stock exchange in Dalian, the palm oil contract fell 1.9% to 1 1,175/ton yesterday, while the soybean oil contract fell 1.6% to.1,313/ton.

Prices for Ukrainian sunflower oil for delivery in July and August remain at the level of about 1 1120-1180/ton FOB, while prices for new crop oil continued to decline to the level of 1 1050-1100/ton FOB.

The weather contributes to the development of sunflower crops, and lower rapeseed prices increase pressure on forward sunflower prices.