On Monday, palm, soybean and oil futures rose by 2.2-4.5% against the background of increased exports
Vegetable oil markets opened the week with a sharp speculative rally in Chicago soybean oil prices, driven by declining US soybean inventories and increased demand from the biodiesel industry. Prices were also supported by the increase in the price of Malaysian palm oil based on the data on the slowdown in the growth of stocks in June and the activation of exports in July.
September palm oil futures on Bursa Malaysia yesterday rose 2.3% to 3,923 ringgit/t or $840/t (-1.6% for the week) on data from surveyors Amspec Agri and Intertek Testing Services that exports increased for the period July 1-10 by 18.7-26.1%. In addition, the statistics for June turned out to be better than traders expected.
According to the Palm Oil Board of Malaysia (PAB), palm oil stocks in the country rose by 1.9% to 1.72 million tonnes in June, well below forecasts, while crude oil production fell by 4.6% to 1.45 million. tons, and exports increased by 8.6% to 1.17 million tons.
On the Dalian Chinese Stock Exchange, soybean oil contracts fell by 0.1%, and palm oil contracts rose by 0.4%. This shows that the main world importer sees no reason for a sharp rise in prices, as the slowdown in the development of the Chinese economy increasingly reduces the demand for products.
On the Chicago Stock Exchange, August soybean oil futures rose 4.5% to $1,438/t yesterday (+2.5% for the week), and December futures rose 4.3% to $1,340/t (+1, 1%), although soybeans rose in price by only 2.2%.
Sunflower oil prices remain at the level of $900/t with delivery to buyers, as the volume of offers is quite high.
Argentinian and Brazilian soybean oil prices remain significantly lower than US soybean oil prices, so a rise in the Chicago Stock Exchange will lead to increased purchases by importers of palm and sunflower oil. At the same time, an increase in the supply of rapeseed oil in the near future will sharply increase the pressure on neighboring vegetable oil markets, even despite a slight increase in oil prices.
