Continues the speculative rise in prices for soybean and sunflower oil
July futures on palm oil yesterday almost resumed its fall on Monday and rose to 534 $/t of concern regarding the extension of the ban on palm plantations that would reduce sentences. Despite calls by the Malaysian palm oil Association to open plantations, where there were no cases Covid -19, the government does not allow their work, therefore the country remain blocked nearly 75% of the plantations.
After palm oil prices, soybean oil in Argentina increased to 595 $/t FOB Up River. Speculative growth of prices supports the reduced forecasts of soybean crop in Argentina and Brazil, although the actual demand continues to decline.
in anticipation of the release of the USDA report, analysts have released their predictions, which have emerged from nearly a month of drought, soybean production in South America decreased by 3.5 million tonnes, in particular in Brazil from 126 to 123.9 million tonnes and Argentina from 54 to 52.6 million tons.
the price of soybean oil in the United States yesterday increased by 1.3% to nearly a month high 603,4 $/t, whereas soybean quotes almost unchanged and traded at the level of 315,3 $/t
In Ukraine, the price of sunflower oil is gradually growing despite the lack of buyers and a slowdown in exports. Small and medium-sized processors, stopped work due to the rapid growth of prices for sunflower and large companies holding back the sale of oil in anticipation of higher prices. Now prices increased to $700/MT FOB, while prices of demand were 680-685 $/t FOB.
According Barva Invest in 2019/20 MG Ukraine has reduced exports of sunflower oil by 2.15% from 3.26 to 3.19 million tonnes compared to the corresponding period of the previous season. In particular in March 2020 the supply of sunflower oil decreased in comparison with March 2019, 14% from 570 to 490 thousand tons.
Recall that in January-February 2020 in Ukraine produced 1.1 mln tonnes of unrefined sunflower oil, which is 15.7% more than in 2019 for the period.
