The recovery of China's economy can support prices for vegetable oils

2020-03-19 12:05:10
Machine translation
The recovery of China's economy can support prices for vegetable oils

China has proven that strict quarantine measures and testing of the population can effectively deal with the disease. Yesterday in Wuhan, which is the epicenter of the epidemic Covid-19, for the first time since the outbreak of infection was not recorded new cases of infection. The country yesterday revealed 13 new cases of infection, of which 12 is the virus, brought from abroad, and only 1 person was infected in China.

 

China begins to cancel the quarantine and restore the normal operation of the country, which will lead to increased demand for imported goods.

 

crude oil Prices on world markets continue to fall have already fallen to 2003 levels, which increases pressure on the vegetable oil markets.

 

the May futures for palm oil in Malaysia yesterday first increased by 3.5% due to the necessity of closing palm plantations on quarantine, but later fell by 0.5% to 2239 Ringgits/t or 511,4 $/t since the government changed the status of the industry palm oil from "insignificant" to "significant".

 

amid the recovery of China's demand for vegetable oil on the stock exchanges of the country, futures for soybean oil rose 0.4%, and palm oil – by 0.6%.

 

the May futures for soybean oil in Chicago yesterday in the course of trading fell to a 14-year low 544 $/MT, but later rebounded to the opening level 558 $/t

 

Prices for soy beans and oil, supports the slowdown in the soybean crop in Argentina and Brazil because of the shortage of opals and the heat of recent weeks.

 

the Demand for Argentine soybean oil is growing due to the low price, which is located at 560 $/t FOB Up River for shipments in may-June. Buyers realize that prices have hit bottom and are unlikely to fall further against the background of the expected reduction in production, and therefore stimulate purchase.


as a Result of falling prices for palm and soy oil, demand for Ukrainian sunflower oil is almost absent. Bid prices fell to 640-650 $/MT FOB, while demand for shipments in may-June remain at 620 $/MT FOB, the lowest level since December 2018

 

India and China where coronavirus almost not extended, will soon resume the demand for vegetable oil that will keep prices from further decline.

 

the World is gradually learning to address the pandemic, and news on the development of vaccines and their testing in humans gives hope for a quick victory over the virus.

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