The price of rape decreased by 4.5 €/t pressure drop of vegetable oil markets

2020-07-30 12:06:16
Machine translation
The price of rape decreased by 4.5 €/t pressure drop of vegetable oil markets

Yesterday, the August rapeseed futures on the Paris MATIF fell by 4.5 €/t to 380 €/t, and at the November 3,75 €/t to 380,5 €/t, although at the beginning of the week they were actively growing. The reason of such dynamics of quotations was the market palm oil prices, which for the previous 2 weeks increased by 14.5% since the beginning of the week lost 5%.

 

the strengthening of the Euro against the dollar to the level of the 1,177 $/€ led to a rise in the dollar prices to 447,5 $/t, and recently the price reached even 452 $/t

 

the price of canola on the canadian exchange ICE this week rose to 489,8 CAD/t or 367 $/ton, despite improved weather conditions in the country.

 

In Ukraine, purchasing prices for rape in the ports reached the highest since the beginning of the season level 425-428 $/t or 13900-14100 UAH/t, but further growth has stopped increasing volume of proposals and the gradual strengthening of the hryvnia. Refiners have stepped up purchases and offer for canola delivered to the plant 12800-13800 UAH. They are willing to buy canola with GMO, while exporters of GMO products is not accepted.

 

Like last year, again appeared the problem of the low oil content of rapeseed, which is at the level of 39-41% on raw material basis 42%, resulting in traders discount the price by 1.5% for every 1% of oil deviation from baseline. This considerably reduces the incomes of producers and forces them to restrain sales. Interestingly, low oil content observed in the southern regions affected by drought and in the West, where, during the grain ripening there was a powerful rain.

 

Futures on palm oil exchange in Malaysia after a two-day decline to 5.7% yesterday rose 1.6% to 2645 Ringgits/t or 623,5 $/t on the background of rising prices for soybean oil in South America, caused by the intentions of individual Argentine processors to stop production due to the outbreak of Covid-19.

 

Since the beginning of the week the price of Argentine soybean oil for delivery in September and October rose to 730-740 $/t FOB Up River.

 

September futures on soybean oil in the United States after falling by 2.5% during the last 7 sessions rose yesterday by 0.7% to 665 $/t

 

the projections for the increase in palm oil production in Malaysia and Indonesia in July continue to put pressure on neighboring markets of vegetable oils, so in the near future, given the improvement of soybean crops in the U.S., the downward trend in prices for vegetable oils will continue.

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