Oilseed prices of the new harvest in Ukraine are rising in the recovery of vegetable oil markets

Despite the active collection and shipment of soybean crop from South America, the global vegetable oil markets remains a shortage of supply. This has led to a rapid increase in the price of oil crops from the new harvest.

Among all the vegetable oils most during the week rose soybean oil prices, which rose by almost 8%. May futures on the stock exchange in Chicago on Friday rose by 1.8% to 1240 $/t on the news about the reduction of stocks of soybeans in the U.S. and delay harvest in Argentina, what is holding back supplies to the world market.

Ukrainian sunflower oil for the week rose only 3-3. 5% in 1560-1585 $/t FOB, because the increase in confidence that a ban on the export of sunflower oil will not enter, has limited the further price increase.

On the stock exchange in Malaysia June futures of palm oil for the week decreased by 1.3% to 3716 ringgit/t or 901 $/ton since the end of the first half of April showed that manufacturing is growing at the same pace and exports and inventories remain high.

High price of vegetable oils, which persist for a long time, forcing traders to actively buy oilseeds new crop, so that the forward prices in Ukraine has risen sharply over the last week.

After the rising prices of sunflower oil, new crop from 1000 to 1110-1150 $/t FOB for deliveries in October, the forward price of sunflower increased with 530-550 $/t to 570-600 $/t

August futures on rapeseed on the stock exchange in Paris for the week rose by 5.7% to 479,5 €/t or 573 $/t, with the result that in Ukraine, the forward prices for rapeseed delivery in July – August increased from 520 $/t to 535-545 $/t

High forward prices for oilseeds indicate that in the new season, the markets will remain under pressure high in demand due to the not-too-high yield of rapeseed in the EU and Ukraine, as well as the uncertainty of future yield of sunflower in Ukraine and Russia.