The price of vegetable oil has increased in spite of "bearish" USDA report

Yesterday the price of vegetable oil increased, despite the fact that experts in a new report, the USDA increased the forecast of world production of vegetable oils by 1 million tonnes to 209,88 million tonnes, nearly 4 million tons higher than the figure recorded the previous season.

at the same time the forecast of world consumption of vegetable oils increased by 0.9 million tonnes to 206,95 million tonnes (200,97 million tonnes in 2019/20 MG), so the estimate for ending stocks left unchanged at the level of 20.5 million tonnes, 1.5 million tonnes lower than in 2019/20 Mr.

the Demand for vegetable oil is growing in spite of earlier forecasts of demand reduction due to imposed by most countries to quarantine restrictions.

the price of oil exceeds locarnini level, despite the forecasts of the increase in world soybean crop and reduced demand from the biodiesel industry.

Futures on palm oil exchange in Malaysia for two days grew by 3.1% to 2716 Ringgits/t or 648,4 $/t on the background of rise in price of vegetable oils in China.

the Demand from China is now supporting world prices for agricultural products at a high level. However, the increase in inventory in China, with increased sentences, soybean, rapeseed and sunflower oil from the new harvest in September could dramatically derail quotes.

the Markets are rumors about the order of the state Chinese companies to increase stocks of vegetable oils, corn, wheat and soybeans.

Futures for soybean oil in the United States for two days grew by 2.5% to 687 $/t on the background of speculative price increases for soybeans caused by hurricane in the state of Iowa which may have damaged the crops. The increase in the forecast of world soybean production by 8 million tonnes while that didn't affect the prices of soybean oil.

Active export of soybeans to China in the first half led to a shortage of soybeans and soybean oil in Brazil, with the result that the government decided in September and October to reduce the rate of biodiesel in automobile fuel from 12% to 10% to reduce the pressure on the quotation of soybean oil.

Despite the dry weather, the experts, the USDA increased the forecast of sunflower production in Ukraine in 2020/21 MG 0.5 million tons to 17.5 million tons compared to 16.5 million tons in 2019/20 MG, while Russia's production estimate was lowered 1.5 million tons to 14 million tons, which is 9% less than the previous year.

as a Result of the imposition of export duties, Russia will reduce exports of sunflower and sunflower oil production by 0.25 million tonnes to 5.4 million tonnes, while Ukraine increases production of sunflower oil by 0.25 million tons to 7.3 million tons

Prices for black sea sunflower oil with delivery in September-November, remain at 780-820 $/t FOB, but the prices demand for 35-45 $/tonne lower, so sales are sluggish.

After declining by experts from the USDA forecast of rapeseed production from July 69,819 million tonnes to almost last year's level 68,114 million tonnes (primarily due to the decrease of ratings for Ukraine from 4 to 2.5 million tons) has led to higher prices for rapeseed on the MATIF in Paris to 380 €/t