The price of vegetable oil has received support from the possible introduction of export duties on the Russian sunflower oil

According to the head of Ministry of economic development Maxim Reshetnikov, the Russian Government is preparing the introduction of export customs duties for sunflower oil. According to him, the authorities took measures to contain the prices of some foodstuffs, as well as the introduction of duties on exports of wheat and sunflower oil. The authorities of the Russian Federation, is still prepared to sign agreements with the producers of sugar and sunflower oil to stabilize prices, they should be concluded before December 20.

If a similar statement on the wheat market caused a sharp increase in prices of 2.5 – 3.5% per day, the vegetable oil markets reacted more calmly and only strengthened slightly, since the volume of sunflower oil exports from Russia in global exports is low. The main impact of the introduction of fees affect the prices of Ukrainian sunflower oil, which benefit from rising prices from a competitor.

Prices for Ukrainian sunflower oil continued to strengthen, and asking prices rose to a level 1130-1140 $/t FOB with delivery in the first quarter, but further growth was limited by lower prices for soybean oil on the stock exchange in the United States.

the Strengthening of the hryvnia against the dollar by 1% over the week continues to lower prices for sunflower, so the processors have to continue to purchase at higher prices than before, and to a lower refining margin. After a decline in purchase prices from 20000 UAH/ton to 18000 - 18500 UAH/ton with deliveries to the plant, farmers have almost stopped selling and took the "wait" in the hope that prices will again rollback to the previous High level.

news from Russia on fees, as well as news about the weather in Argentina - where the lack of precipitation continues to lower forecasts production of soybean and sunflower continue to support.

the Planting of soybeans in Argentina has accelerated, after precipitation last week, and according to experts of the grain exchange Buenos Aires, as of 9 December made by 57.1% of the area, which is 4.4% below last year's figure during the same period. But the minimum forecast precipitation for the next week again threatens the pace of sowing and obtaining a good germination.

Prices for Argentine soybean oil continues to rise, and yesterday the price growth accelerated in the background of a strike by the workers of the processing plants and the price has gone up by 20-30 $/t to 970-980 $/t FOB UpRiver.

Futures for soybean oil on the CBOT exchange in the US yesterday has grown a lot during the day, and the February contract rose by 1.8% to 857$/t to the highest level since July 2014 but by the end of the day returned to the opening level 844$/MT amid falling oil prices.

Futures on palm oil exchange in Malaysia yesterday rose 1.4% 3,456 ringgit per ton or 853$ per tonne), reaching more than eight-year high amid speculation about duty in Russia and strikes in Argentina.

According to the report of the MPOB, the palm oil production in November decreased by 13.5% compared to the previous month and reached the lowest level since March due to heavy rains and a shortage of manpower due to restrictions Covid-19, and in December the production has not yet shown significant growth.

palm oil Exports for the first ten days of December, down 6% compared to the same period in November, but traders hope that the pace of exports will increase to the end of the year on the background of reduction of duties on the part of India, and the growth of quotations in China.

on Monday at the stock exchange in China, the contract for palm oil is again increased by 2% to 6964 yuan per ton, or 1064$/t and the contract for soy oil, 1.9% to 8030 yuan per ton or 1226$ /t

Forecasts heavy rainfall in Brazil restricts further growth of prices in the soybean complex, and in the short term, data on exports, will determine whether to recover the demand due to the rising price of vegetable oil.