Quotes on vegetable oils declined due to reduced demand
on Friday, vegetable oils on world markets was trading at a high level, but at the end of trading fell slightly as a result of fixation of profit by traders amid lower export demand and forecast for next week rain in South America.
Futures on palm oil exchange in Malaysia on Friday fell 1.6% to 3288 Ringgits/t or 803,91 $/ton, losing for the week of 2.8% due to a reduction of exports in November by 16%. Through high prices consumers prefer soybean oil, which is slightly more expensive palm.
Futures soybean oil on the stock exchange in Chicago at the beginning of Friday's session, soared, and then dropped to 847 $/ton, gaining for the week of 6%. The market supports the price increase for soybeans, the increase in consumption of soybean oil in the USA and news about the approval of the authorities of Brazil to use imported soybean oil in biodiesel production.
According to Oil World, in October, Brazil has increased compared to the same period in 2019, the consumption of soybean oil in the production of biodiesel from 335 to 373 thousand tons, while the share of the said oil in the production of biodiesel grew from 65,6% to 72.2%.
According to analysts, Brazil has increased production of biodiesel in October to 516 thousand tonnes, compared with 511 tonnes in October 2019, and in General in the current year – to 453 thousand tonnes to 4.68 million tons.
we will Remind that last week the Brazilian government was allowed to use imported soybean oil in biodiesel production, however, it is unknown gained this permission is in force for the current month.
On the Dalian exchange in contracts for palm oil decreased by 3.1% to 6778 yuan/ton or 1033 $/t, and soybean – by 0.9% to 7916 yuan/ton or 1206 $/t FOB.
On the physical market, the price of soybean oil rose to 980-1000 $/t FOB, however, active procurement do not exist.
Prices for Ukrainian sunflower oil on the background of deficit of proposals for the week increased by 80 to 100 $/t to 1150-1180 $/t FOB.
