In vegetable oil markets continues lower prices

2021-01-18 12:15:22
Machine translation
In vegetable oil markets continues lower prices

After the update in the first week of the new year, 6-10-year highs, the price of oil on world markets began to decline amid a sharp decline in demand and the disappearance of the factors.

 

the Leader of the fall was palm oil, which is from 8 to 15 January has fallen in price on the stock exchange in Malaysia by almost 12% from 3830 to 3423 rmitv/t or 848,33 $/t, which is a record decline for the last 5 years.

 

the Cause of the fall was a significant reduction in exports, which, according surveys of ITS company in the first half of January, decreased in comparison with the corresponding period of December 42% up to 416.5 thousand tons.

 

Recovery of exports of soy oil from Argentina have reduced speculative demand for palm oil and the introduction by Malaysia of 8% export duty on palm oil increases the pressure on prices.

 

After the Malaysian stock market of palm oil on the Chinese stock exchange in Dalian on Friday fell by 3.7% to 6646 yuan/ton or 1,026 $/t and the quotation of soybean oil – by 2.2% to 7666 yuan/ton or 1183 $/t

 

On the Chicago Board of CBOT on Friday, the March futures for soybean oil have also decreased by 3.1% to 922 $/ton after prices for palm oil and under pressure from the NOPA data, according to which processing of soybean in the U.S. in December was less than expected by traders, and amounted to 4.98 mn tons.

 

amid the fall in world vegetable oil markets bid prices for Ukrainian sunflower oil decreased from 1300 to 1270-1280 $/t FOB, while the bid price does not exceed 1250 $/MT FOB. Sunflower oil price hike last week has led to a rapid increase in purchase prices for sunflower seeds in Ukraine, due to which the manufacturers again stopped the sale. This has kept the price of sunflower oil from further decline.

 

Recovery of exports and the beginning of harvesting of sunflower in Argentina reduces the strain on world markets. During the week prices of Argentine soybean oil dropped $50/t FOB to $1000/MT FOB Up River. Within weeks, the vegetable oil markets will remain under pressure increase offers from sellers that will try to sell more expensive goods, and news about the weather in Argentina, where despite the recent precipitation there is a deficit of moisture, which can lead to another slowdown in soybean production.

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