Prices for soybean and sunflower oil has remained stable despite the reduction in price of palm oil

2019-09-04 12:06:39
Machine translation
Prices for soybean and sunflower oil has remained stable despite the reduction in price of palm oil

Yesterday on the stock exchange in Malaysia futures for palm oil fell by 2.4% to 520,5 $/t, demonstrating the biggest daily decline for the last 4 months, the low volume of August exports and a decline in prices for soybean oil in the United States.

 

According to experts of the SGS, in September, Malaysia will increase compared to July palm oil exports by 15.6% to 1,662 million tonnes, although some analysts had forecast it at the level of 1.8 million tons.

 

December futures for soybean oil in Chicago yesterday dropped to 625 $/t, however, by the end of trading rose to 639 $/t on the increase of soybean in the U.S. in July compared to June by 13.9% to 4.89 million tonnes and with the support of the market of soybeans, where futures rose to 319 $/t due to the increase of weekly exports to the largest with Feb level – 1,281 million tonnes, of which 780 thousand tons was sent to China.

 

However, the news of another delay in the resumption of trade negotiations between the United States and China puts pressure on prices of soybean complex.

 

In Ukraine, the increase in the supply of sunflower oil from the seeds of the new harvest and low demand continue to put pressure on prices. Price offers for September delivery fell to 725-745 $/MT FOB, for October – to 725-730 $/t FOB, while prices demand does not exceed 720-725 $/t FOB, and delivery in November generally fell to 700-705 $/t FOB.

 

Dry and warm weather promotes rapid harvest of sunflower in Ukraine and Russia, the harvest is going to be quite high, and allows early start of processing season.

 

In the August report experts USDA increased the forecast of world production of sunflower oil in 2019/20 MG to record 20,281 million tonnes compared to 19,714 MT last season. Production will increase all the main producing countries, except Argentina. Thus, in comparison with the previous season, Ukraine will increase production of sunflower oil by 2.7% from 6,364 to 6,536 million tons, Russia – by 6.36% with up to 4,853 5,162 mln t, the EU and by 1.7 percent from 3,697 to 3.76 million tons.

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