Palm oil market continues to rise

Prices for palm oil on Friday continued to rise and on Friday added another 3.7 percent, showing growth for two weeks by 9.4% to the highest level in almost six months amid increased demand and concerns about lower production, continuing to provide strong support to the prices of other vegetable oils.

October futures on palm oil exchange in Malaysia on Friday reached its highest level in 6.5 months 2614 ringgit/ton, or 613,6 $/t showing the highest increase in prices for the week for three years.

the Main factor of the growth is the impact of the floods in Indonesia and Malaysia, which can cause reduced production and possible disruptions in the supply of palm oil for export markets.

an Additional factor has been the growth of futures on rapeseed oil in China to a seven-year high, after the ship with European rapeseed oil was not accepted because of the presence of GMOs. China imports products contain GMOs such as soy from the US, canola from Canada, but the refusal of rapeseed oil with the presence of GMOs caused the growth of prices for all vegetable oils on the Dalian exchange in China: rapeseed at 3.4%, futures on palm oil 2%, soy 4%.

Futures for soybean oil in the US on Friday continued to rise sharply after neighbouring markets, palm and rapeseed oils rose by 4.7% to 681 $/MT, while quotations for soybeans grew by only 0.9% and is trading at 330,1 $/t

Quotes for rapeseed on the MATIF exchange in Paris on Friday rose 1.5 G/t up to 384, 5 Is/t on the background of maintaining the growth of prices for vegetable oil, restoring loss per week, but increasing the supply from producers will continue putting pressure on the market in the near future.

the Purchase price of rapeseed in Ukraine also rose last week by 100-200 UAH/t to 13550-13650 UAH/t with delivery to the port due to the growth of the dollar against the hryvnia, and the prices in the currency remain at around 415-420$/t delivery port.

the offer Prices of Ukrainian sunflower oil of the new crop continue to grow and reach the level 755-770$/t FOB with delivery in October, while prices of demand grow more slowly and remain at 725-745$/t FOB depending on the delivery terms.

the Export of sunflower oil from Ukraine since the beginning of the marketing year have reached 6.1 million tons, and by September 1 may exceed 6.5 million tons.

the State of sunflower plantings of the new crop are estimated as good and the harvest forecast remains at a high level.