Prices for vegetable oil are falling after oil quotations

2020-09-30 12:07:29
Machine translation
Prices for vegetable oil are falling after oil quotations

Uncertainty over oil demand amid the spread of the second wave of the pandemic Сovid-19 pressure on oil prices, which yesterday tumbled 5%, and also lowers the price of vegetable oils, which are commonly used in the production of biodiesel.

 

Sharp rise in prices for vegetable oils in September to the highest levels Jan 2020 amid a seasonal increase in production of palm, soybean and sunflower oil surprised the market. After previous growth by 15-30% quotes listed oil last week fell by 10-12%. Despite analyst expectations for a price adjustment over the next weeks, quotes continued to fall following the oil market.

 

Futures on palm oil exchange in Malaysia fell by 1.6% to 2777 Ringgits/t or 668 $/t on forecasts of lower demand from China.

 

Futures for soybean oil in the U.S. dropped 1.8% to 712,9 $/t after the fall in soybean prices.

 

China as a result of long weekend from October 1 to 8 will reduce purchases of soybeans and other produce from the US and palm oil from Malaysia.

 

prices of Argentine soybean oil dropped to 770-780 $/t FOB, but they support the intentions of the government to increase export duties on soy and other agricultural products.

 

After the vegetable oil markets prices for rapeseed oil in Europe dropped by 10-15 €/t to 760-770 €/t FOB, which puts pressure on the quotes on rape.

 

In Ukraine the prices for sunflower oil on the background of cheaper palm and soybean oil fell to 860-885 $/t FOB. Refiners are holding back sales, however, exporters do not hurry to raise the bid prices as prices for delivery in India drastically fell to 870-890 $/t CIF.

 

This week the vegetable oil markets will remain under pressure from declining demand and the seasonal growth of production.

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