The price of palm oil is higher than soybean

Yesterday the price of oil, soybeans and oil on U.S. exchanges declined slightly on the back of profit taking by traders and concerns about future demand due to a sharp increase in the number of infected Covid-19 in the US, where during the day ill 144 thousand people.

However, the January futures for palm oil exchange in Malaysia are rising for the fourth session in a row, and yesterday rose 1.3% to its highest since 2012-level – 3391 Ringgits/t or 821 $/t, adding over the week was 6.6% and for the first time since February ahead of the futures price for soybean oil on the stock exchange in Chicago.

In early November, palm oil production in Malaysia fell by 11.9% and exports - by 9%, however, low stocks at the end of October, increasing pressure on prices.

At the same time on the stock exchange in China, which is the main importer of vegetable oils, the quotation of soybean oil decreased by 0.2%, and palm rose only 0.6%.

December futures for soybean oil in the United States fell yesterday by 0.4% to 806 $/t in the absence of purchases from China. Since the beginning of November soybean oil rose by 12%, which reduces demand from buyers.

In Ukraine intensifying competition between processors for the party of the sunflower, and prices reached a record 17800-18000 UAH/t or 635-639 $/t delivered to the plant. However, manufacturers expect prices to rise up to 20,000 UAH/t and do not hurry with sales.

at the same time there is another cause for concern processors. According to GTS, 10 days of November it was exported 26 thousand tons of sunflower seeds and 10 months 2020 its exports grew compared to the corresponding period last year by 57.4% from 73,2 to 115.2 thousand tons, and by the end of the year could reach 200 thousand tons.

Prices for Ukrainian sunflower oil will remain at the level of 1050-1100 $/t FOB, but buyers are not willing to pay more than 1,050 $/t FOB, and sellers can't sell oil cheaper as buy raw materials at RS 18000/t

the rising prices of palm oil can maintain the quotation of soybean and sunflower oil. However, due to low oil prices, the reduced consumption of expensive vegetable oils biodiesel industry can dramatically increase the supply for food consumption, while demand from the population in the near future to decline due to falling incomes in the crisis.