Strong demand supports prices for vegetable oils at a high level

the decision of the Chinese authorities to restrict the purchase of goods from the United States has supported world prices for vegetable oil, since after reducing the import of vegetable oils from USA China is stepping up their purchase in other countries.

Indonesia from June 1, increased the export duty on crude palm oil by 5 $/t to 55 $/t to support the mandate on B30 biodiesel production. Meanwhile, Malaysia reduced the export duty to zero to support domestic producers by a decline in shipments to India.

Futures on palm oil in Malaysia last week rose 5.8% to a two-month high, but on Monday fell 0.5% to 2280 Ringgits/t or 528,08 $/ton, despite the increase in exports in may compared to April 7-8%.

Futures soybean oil in Chicago at the beginning of the session rose to 611 $/t, but after the news from China fell by 2.3%, but later rebounded to 608 $/t, having posted a daily growth rate of 0.6%. Prices were supported by data on the volume of soybean processing in the United States in April, within a 5 million tonnes, though lower than in March, but significantly exceed expert expectations.

bid Prices of Argentine soy oil gradually rose to 640 $/MT FOB Paranagua, although the demand for it is low.

the bid Prices for Ukrainian sunflower oil grew to 750-760 $/t FOB for shipments in July-August, while the Russian oil has risen to 740-745 $/t FOB.

this season as of may 1, Ukraine increased the export of vegetable oils in comparison with the corresponding period 2018/19 Mr 10%, and exports of meal – 11%. The main buyers of Ukrainian sunflower oil were the countries of the EU (with a share 32,35 in total exports), India – 28,75 or 1.3 million tonnes, and China – 13,7% or 0.62 million tons.

in may, the Russian ports shipped 217,3 thousand tons of sunflower oil, which is 7% higher than may 2019, the Main buyers of Russian oil in may were Turkey, Iran, China, Saudi Arabia, Egypt and Lebanon.