The price of rapeseed oil is increasing due to strong demand

Despite the strengthening prices for soybeans and restoring futures for palm oil quotation of soybean oil reduced. But rapeseed oil in Europe for the week rose by 40 €/t to its highest since November 2017 level 805-810 €/t DM FOB for shipments in November-January, and 780 €/t DM FOB for shipments in February-April.

the decrease in the production of rapeseed in the EU and increasing demand from the biodiesel industry against the background of the increase of duties on Indonesian palm oil led to higher prices for rapeseed oil and rapeseed in 380,75 €/t or 422,4 $/t

November futures for soybean oil in Chicago dropped Monday by 2.4% to 636,9 $/t, while prices for soybeans due to weather conditions rebounded after falling last week.

In Malaysia November futures for palm oil stopped falling and rose by 1% to 2177 Ringgits/t or 520,7 $/t on higher export forecast in August. According cargo inspector Ampsec, during 1-20 August, exports grew compared to the previous month by 13% to 1,028 million tons, according to ITS by 8.7% to 1,005 million tons.

According to the forecast Council for Malaysian palm oil (MPOB), the country in the current year will increase compared to the previous production of palm oil from 19.5% to 20.3 mln t, while in the 2nd half of the year the production will decrease on the corresponding period last year due to low yield of raw materials. The volume of ending stocks by the end of the year decreased from 3.2 to 2.5 million tons.

Despite the good forecast of sunflower production in Ukraine, the price of domestic sunflower oil remains high 715-725 $/t FOB for shipments in September and October due to good demand. According to the state statistics service, as of August 1 sunflower stocks is 12.6% higher than last year's level, while for the enterprises engaged in processing and storage, they increased by 39.6%, while producers decreased by 3.4%. Small inventories of manufacturers and low prices for seeds of the new crop could lead to lower sales sellers at the beginning of the season.

New price points will determine the next tender in Egypt, where the Aug 22, GASC plans to purchase 40 thousand tonnes of soybean oil (30 kt on the outer and 10 thousand tons in the domestic market) and 15 thousand tons of sunflower oil (10 thousand t on the outside and 5 thousand tons in the domestic market).