Prices for vegetable oil continued to update the records

Despite the stable global balances of oilseeds and vegetable oils prices on them are high and already exceed decoratin level. The reason for the rising prices was the increased demand from China, which increases the reserves of oil and the depreciation of the dollar relative to other currencies.

the most expensive palm oil, increased by Indonesia in 2020 the use of palm oil into biodiesel, which has reduced the volume of exports. In August, the weather factors started to rise in price of soybean and sunflower oil, although analysts had forecast September seasonal decline in prices.

According to the forecast the world's largest producer of palm oil the Malaysian company FGV Holdings Bhd (FGV), in the 2nd half of the crude palm oil will be reduced and at the end of the year reached 2400-2600 Ringgits/t or 575-620 $/t. Since June, the price of malaysische palm oil has grown at 15-16% due to increased demand from China and India, but the reduced demand due to high prices will accelerate their decline.

Futures on palm oil exchange in Malaysia yesterday rose 1.7% to 7-month high of 2784 Ringgits/t or 672,5 $/t after the rise in price of soy oil to the highest January level.

Despite the decline in exports in August to 15%, futures for palm oil for the week rose by 6.5% in comparison with July due to speculators, who are concerned about slower-than-expected seasonal ramp up of production in Malaysia.

the Indonesian palm oil Association (GAPKI) predicts a decrease of palm oil exports in 2020 by 18% to 24.9 million tonnes, while production will decline by only 2.1% to 46 million tons.

amid a sharp rise in price of palm oil and forecasts a decrease in crop U.S. soybean futures soybean oil for the week rose by 6.2% to 7.5-month high of 740 $/t, but yesterday was down 2% on the data on soybean processing in the United States in July.

According to the report, Fats and Oil, the volume of soybean processing in July rose compared with June by 4% to 5.02 million tonnes, which exceeded the expectations of traders, while the stock levels of soybean oil decreased by 6.4%.

In Ukraine, due to lower forecasts of sunflower production due to low yields, prices of sunflower oil increased to 870-880 $/t FOB, which is equivalent to 940-950 $/t CIF India, while the demand price does not exceed 830-840 $/t FOB. Buyers expect a seasonal decline in prices, but traders on the background of containment sales manufacturers are forced to raise prices for the sake of bringing goods necessary for the execution of contracts for September.

According to the Ministry of economy, in 2020 the production of sunflower in Ukraine will decrease compared with the previous year by 8.5% to 14 million tonnes due to dry and hot weather.