The price of palm oil remains higher than for soybean

2020-01-14 12:36:54
The price of palm oil remains higher than for soybean

March futures on palm oil exchange in Malaysia in p' Friday rose to a 3-year high of 3136 Ringgits/t or 769 $/t on data about more-than-expected inventory reduction, but yesterday they fell by 1.3% to 761,39 $/t due to lower demand from India.

 

Indian buyers are performing a governmental decree according to the diplomatic disputes and avoid purchase of Malaysian palm oil, but for Indonesian willing to pay an additional premium of $10/t

 

In 2019 Malaysia increased compared to previous year, exports of palm oil by 12% to 18.5 million tonnes, bringing inventories decreased by 37.5% to the lowest since August 2017 level of 2.01 million tons

 

palm oil Production in the country declined for the third consecutive month in December fell by 13.3% to 1.33 million tonnes, the lowest since June 2018

 

the Main reason for the rise in price of palm oil was the decision of Malaysia and Indonesia to increase its share of biofuels from 20% to 30% and a rapid increase in its exports to India and China. So, due to the low prices of palm oil compared to soybean and sunflower, with which the difference reached 100-150 $/t, Malaysia has increased exports of palm oil in India by 75% to 4.4 million tonnes, to China - 35% up to 2.5 million tonnes.

 

amid the uncertainty with the details of the first part of the trade agreement between the US and China, must sign on 15 January, the quotation of soybean oil in Chicago continue to decline and yesterday fell 1% to 746,04 $/t lost in two weeks is 4.7% of the price.

 

Prices for Ukrainian sunflower oil under pressure from falling prices of palm and soybean oil fell to 810-815 $/t FOB.

 

bountiful harvest of sunflower in Russia at the level of 15 million tons increases the proposals of the Russian sunflower oil, whereas in Ukraine, the producers are holding back sales.