Chicago soybean oil futures continue to break records

On the US stock exchanges, a rapid rise in the price of the nearest wheat and corn futures continues, and the leader of growth is soybean oil, whose prices rose by 7.5% yesterday, and in general over the past 2 weeks – by 30%. At the same time, prices for oil and palm oil are declining, while sunflower oil remains stable amid reduced demand from India, where the coronavirus pandemic is intensifying.

Yesterday on the Chicago Stock Exchange, May soybean oil futures rose 7.5% to.1,480/ton, July – 4.8% to. 1,359/ton, and December – 1.4% to. 1,144/ton amid accelerated sowing in the United States.

According to the USDA, as of April 25, 8% of the country's area was sown with soybeans, compared with 7% on this date last year and 5% on average over 5 years.

During the week, USDA experts inspected 233.9 thousand tons of soybeans for export, which is slightly higher than the level of the previous week. Since the beginning of the season, 55.26 million tons of soybeans have been exported out of the projected 62 million tons.

May soybean futures rose 1.9% to 5 576.5/ton yesterday (adding 9% of the price over the week), and November futures – by 1.5% to.500/ton.

On the Malaysian stock exchange yesterday, June palm oil futures fell 1% to 3,887 ringgit/ton or 9 948/ton, losing 2.6% in two sessions on expectations of a reduction in demand from India due to the lockdown, although according to Statistics, exports for 25 days of April increased by 35% compared to the same period in March.

On the Dalian stock exchange, palm oil futures fell 3.6% to.1,116/ton, while soybean futures fell 2.1% to. 1,296/ton.

In Ukraine, sunflower oil supply prices remain at a high level of F 1570-1600/ton FOB, but low demand forces sellers to lower prices.

The gap between rising stock prices and falling prices in the physical market is widening, so traders do not understand in which direction prices will move in the future.

The acceleration of sunflower sowing in Ukraine and Russia, as well as soybeans in the United States over the next few weeks, will slightly reduce forward prices for the new sunflower and soybean crop. However, if the demand for the old crop remains high even against the background of higher prices, then the prices of the new crop will also resume growth.