Prices for soybean and palm oil has fallen by almost 5%

Speculative factor still has a significant impact on the vegetable oil markets, so yesterday's sale of exchange contracts has led to a collapse in the prices of palm and soybean oil by nearly 5%.

Traders reduce the number of contracts due to the global decline in world prices for grains and oilseeds under pressure from the large harvest forecasts and low physical demand, which declined significantly after the stipulated gaming a sharp rise in price of major agricultural products.

Yesterday may futures for soybean oil in Chicago fell by 4.7% to 1112 $/t before the publication of the USDA report forecasts sowing areas of the U.S. soybean and soybean processing in February. Analysts expect the acreage of soybeans will rise to 90 million acres, although a year ago with the forecast of 85 million acres actually planted 83,08 million acres, or 20.5 million hectares. the Volume of soybean in the United States in February, can be 4.49 million tons, which is 545 thousand tonnes lower than in January-277 thousand t – level Feb 2020

the Decline may futures for soybeans 1.8% to 502,4 $/t increased the pressure on quotes soybean oil, but they received support from the stabilization of prices for soybean meal level 440 $/t

June futures for palm oil in Malaysia yesterday fell by 4.7% to 3572 ringgit/t or 860 $/t on forecasts of increasing production in March by 30-40% and exports by 25-28%.

On the stock exchange in Dalian futures palm oil yesterday fell 1.4 percent to 1,128 $/ton, and soy – 0.5% to 1314 $/t

Under pressure from falling markets, palm and soybean oil prices for Ukrainian sunflower oil also declined to 1500-1520 $/t FOB, but the price of sunflower meal remain at 270-275 $/t FOB.

However, activity in the market because the sellers are not willing to sell their products at competitive prices, and buyers are not in a hurry to buy in anticipation of further price declines.