In vegetable oil markets continues to panic

Yesterday in the markets of vegetable oils has experienced rapid price growth, despite the neutral, the September USDA report, where the global balance of vegetable oils compared to the August estimates have not changed.

the Reason for growth remain panic traders holding speculative buying amid skyrocketing prices and on the data to reduce harvest forecasts to soybean and sunflower. Growth in the neighbouring market of palm oil enhances the excitement, and vegetable oil rise in price, not paying attention to fundamental factors that can lead to a sharp reduction in consumption due to the rapid increase in prices for vegetable oils amid falling oil prices.

In the September report, the USDA forecast global production of vegetable oils in 2020/21 MG reduced compared to the August balance 209,88 to 209,73 MMT, which is 2% higher than the figure recorded 2019/20 MG, whereas the forecast of consumption increased with 206,95 to 207,14 million tonnes compared to 201,35 million tonnes in 2019/20 Mr. As a result, the rating of the world's reserves decreased from 20.54 to 20,07 million tonnes in comparison from 21.66 million tonnes in 2019/20 Mr.

Yesterday futures on palm oil exchange in Malaysia increased by 2.9% to 7-month high of 2892 Ringgits/t or 698 $/t on forecasts of increase in exports in September 14-15%, while in August it decreased by 11% primarily due to soaring prices for palm oil.

Exchange in the United States opened late, and soybean oil began to rise behind palm. In addition, soybean futures for the first time since June 2018 crossed the level of $10/bushel or 368 $/t December futures for soybean oil rose 2.9 percent to the highest since January 13, level 758,8 $/t

bid Prices of Argentine soybean oil increased to 800-810 $/t FOB Up River.

with the rapid rise in price of palm and soy oils, as well as data on low sunflower yield bid prices for Ukrainian sunflower oil continued to rise and yesterday crossed the level of $1,000/MT FOB, while the bid prices for the next contracts not to exceed 940-960 $/t FOB.

Forecast of production of sunflower USDA experts left for Russia at the level of 13.5 mln tonnes, which corresponds to estimates of the Ministry of agriculture, and for Ukraine at the level of 17 million tonnes, while the Ministry of economic development lowered it to 14 million tons.

the price of oil, which actively grew on expectations of recovering demand, fell yesterday by a further 0.5-1% due to the decrease of physical demand, with increased sentences. This may affect the markets of vegetable oils, consumption of which is directly related to the biodiesel industry. In addition, a strengthening of the quarantine, which says an increasing number of countries will become a new factor in the falling demand.