The price of palm oil rose to a 4-month high

Tuesday futures for palm oil in Malaysia increased by 3% to highest level since March 2502 Ringgits/t or 586,2 $/ton amid floods in Indonesia. This has supported the markets, soybean and rapeseed oil, despite the increasing concern about the possible increase of the quarantine restrictions in the second wave Covid-19.

the Market was supported by sharp rise in price of palm oil on the stock exchange in China by 2.96% to 742 $/t

the Floods in the Indonesian provinces of Sumatra and West Kalimantan led to the speculative rise in prices, because they can stop the supply of palm oil.

Futures soybean oil to support the palm oil rose 2% to 644 $/t after the fall last week caused by the July USDA report, where the level of production and stocks of vegetable oils in 2020/21 MG almost not changed in comparison with the June forecast.

Prices for Argentine and Brazilian soybean oil rose to 700-730 $/t FOB due to the increase in the price of soybeans in Brazil, due to its active export to China.

Prices for shipments of October-November, the Ukrainian sunflower oil from the seeds of the new crop remain at the level of 710-720 $/t FOB, which actively interested buyers, while offers of oil from the old crop is virtually absent.

Due to the high product prices in the oilseed complex, Ukraine in the 1st half of 2020 increased compared to the corresponding period in 2019, the export of the main types of oil products by 19% to 3.7 billion $, in particular, oil – by 23.6% to 2.9 billion $, including sunflower – by 24.2% to 2.74 billion $, sunflower oil – by 11.6%. Due to this, the share of exports of the main types of oil products in total domestic exports rose from 15.9% to 16.1%, and exports of foodstuffs and agricultural products – from 34.3% to 36%. The share of SME in total exports of foodstuffs and agricultural products in the 1st half of 2020 amounted to 7%, in particular sunflower is 6.7%.

the export of soybean oil decreased by 4.8% and soybean meal by 17.9% due to a deficiency of soybean in the domestic market.