Prices for vegetable oil rose as the recovery in demand
a Sharp drop in the price of vegetable oils and their byproducts, caused a panic in the financial and commodity markets due to the spread of coronavirus, this week stopped, because the low prices of these goods contributed to the recovery of demand for them.
After the decision of the fed to reduce the discount rate from 1.5-1.75% to 1-1,25% of the prices of all agricultural products increased by 1-2%. On the background of this news the markets after the discovery started to rise, but at the end of the session, the stock indexes Dow Jones, S&P500, Nasdaq lost 2.8% and 2.9%. The price of Brent crude rose to 53.7 $per barrel, but later fell to 52.6 $/barrel, having posted a daily growth of 1.5%.
the Experts were reminded that the fed rate has not changed for many years, despite repeated sacrice trump. So, currently, this step suggests that the threat of the global crisis has intensified, markets did not fully appreciate the impact coronavirus on the economy or the fed lost its independence from the US government in decision-making.
Yesterday futures on palm oil in Malaysia rose 2.4% to 2337 Ringgits/t or 567,3 $/t due to the expected increase in demand from China and India to improve relations with which I hope after replacing the Prime Minister of Malaysia. The new head of government promised to bring the countries together that will enhance palm oil exports.
soybean Futures in the United States yesterday increased by 2%, but then decreased to 332,6 $/ton, almost the same level of the session. Prices did not support the increase of soybean in the U.S. in January compared to December by 2.3% to 5.14 million tonnes, which exceeded the expectations of experts.
the May soyoil futures in Chicago rose 1.1% to 647,2 $/t
traders expect the decision of the Argentine government about the export duties for soybeans and products of its processing, and then resumes registration of export contracts and increase the volume of proposals on the world market.
In Ukraine due to recovery of demand prices for sunflower oil increased by 10-15 $/t, up to 680-690 $/t FOB for shipments in April-may. Prices for oil delivery to India rose to 730-735 $/t CIF, but further growth will be limited to prices for Argentine soybean oil, which make up 650-660 $/t FOB and may fall after the recovery of exports and an increase in supply.
the price of rapeseed oil in the Netherlands for 2 days increased by 5 €/t to 787 €/t FOB DM, although for delivery in August-October offer 753 €/t, despite forecasts for a decline of the rapeseed crop in the EU.
