Vegetable oil prices received support from data from the July USDA report

Vegetable oil prices continued to rise after the release of the July USDA report, as analysts expected a more significant increase in production forecasts in 2021/22 MG.

Experts of the US Department of Agriculture increased their forecast for world production of vegetable oils by 0.79 million tons to 216.96 million tons, which is 8.9 million tons more than last season, due to an increase in world production of sunflower oil by 0.64 million tons to 21.79 million tons compared to the previous forecast. Analysts also expected an increase in the forecast for palm oil production, but USDA experts even slightly lowered the production forecast.

 The July balance sheet also increases forecasts for global consumption and imports of vegetable oils. As a result, the final reserves of vegetable oils have remained virtually unchanged at 22.47 million tons against 22.55 million tons last season and will be at the lowest level since my 2010/11.

The forecast for the global sunflower harvest in my 2021/22 was increased by 2.07 million tons to 56.99 million tons compared to the previous estimate, and by 7.3 million tons it will exceed the level of last season. The growth of sowing areas in Russia will lead to an increase in the sunflower crop by 2 million tons to 16.5 million tons, and sunflower oil production will increase by 0.5 million tons to 5.99 million tons (5.141 million tons in 2020/21mg).

For Ukraine, USDA experts left unchanged the previous forecast for the sunflower crop at 16.7 million tons. however, analysts lowered the estimate of sunflower oil production from 6.99 million tons to 6.71 million tons (5.934 million tons in 2020/21mg).

Palm oil prices on the Malaysian stock exchange rose almost 3% after the report was released, and September futures reached the level of 3,977 ringgits per ton, or 9 949/ton, amid forecasts of reduced production and inventory. The forecast for palm oil production in Malaysia in the current 2020/21 marketing year was reduced by 2% compared to the June forecast to 18.2 million tons.

The 1.5% recovery in oil prices also supports vegetable oil prices.

Soybean oil prices on the Chicago Stock Exchange also continued to rise yesterday, and August futures rose 2.2% to 1 1,440/ton, while December futures rose 1.6% to. 1,397/ton.

On the Chinese stock exchange in Dalian, the palm oil contract rose 0.4% to 1 1,205/ton yesterday, while the soybean oil contract rose 1.5% to.1,355/ton.

Prices for Ukrainian sunflower oil received support from the growth of neighboring markets and increased by 2 20-30 to F 1,150 - /1,200 / ton FOB.

Active growth in prices for rapeseed and rapeseed against the background of hot and dry weather in Canada, in the western United States will continue to support prices for vegetable oils and sunflower.