Quotations of palm oil in Malaysia has fallen by 11%
Overheated palm oil market received additional impetus to the fall in coronavirus, which can lead to the reduction of imports by China amid stop imports from India.
on the opening day of the exchange in Kuala Lumpur after the long weekend April futures on palm oil showed the largest daily decline for the last 10 years and decreased by 11% to 2575 Ringgits/t or 630,35 $/t, which was the lowest level since November and a limit that halted trading and has influenced all other vegetable oils.
the Return of buyers to the market and data on the effects of the new virus on the economy of China will reduce panic in the market palm oil that will allow the quotes to the end of the week to recover to 640-660 $/t
quotation of soybean oil in Chicago dropped yesterday by 3.2%, but in the end of the session due to activation of buyers they returned to the closing level last Thursday 703,7 $/t
the Market has supported the recovery of prices of Brent oil, which rose 1.4% to 60,17 $per barrel.
experts compare the current situation in China with the SARS epidemic of 2003 and noted the rapid reaction of the authorities and lower mortality, yet calms the markets. The maximum manifestation of the infestation will take place within 7 days, then you have to understand the complexity of the situation with the spread of the virus.
In Ukraine the prices for sunflower oil fell for the fourth day in a row under pressure from falling markets, palm and soybean oil. Prices declined to $740-750/MT FOB for deliveries in February and March to 755-760 $/t FOB for postwar in the 2nd quarter, but demand remains low, since Asian buyers still rest, and the Indian holding back purchases in anticipation of further price declines.
Power output in China and higher prices for palm oil will increase the demand for sunflower oil. The vegetable oil markets will return to the usual level of prices and the premium for soybean and sunflower regarding palm oil is $50/t, while recently, palm oil was 15 $/t more expensive than soy.