The collapse of oil prices will lead to lower prices for vegetable oils

2020-09-07 12:13:00
Machine translation
The collapse of oil prices will lead to lower prices for vegetable oils

Active growth of the stock market and oil prices and vegetable oil in recent months has surprised experts, as the economies of key countries has not recovered to pre-crisis levels, and stock indexes and prices rose, however, did not reflect real demand.

 

First recovered investors in the stock markets, and the too slow recovery of the U.S. economy began to take profits, with the result that during the Thursday-Friday the S&P 500 fell 7%, Dow&Jones – 6.8%, and the index high-tech Nasdaq companies – just 11%, although at the end of Friday's session, the markets have partially won back falling. After the US exchanges began to fall and European markets and oil prices.

 

Friday appeared rumors about the intentions of the state oil company Saudi Agama from Saudi Arabia with the aim of enhancing sales to increase discounts on the price of oil to its customers in the markets of Asia and Europe. Last month Saudi Arabia has lowered prices for Asian customers of 0.3-0.6 $/barrel and introduced a significant (up to 3 $) discounts for buyers from Europe, where oil competes with the Russian Urals.

 

against this background, on Friday, the futures on WTI fell by 6.7% to 39,36 $/barrel, and Brent 5.3 percent to of 42.28 $/barrel.

 

Under pressure from the falling oil price quotes, palm and soybean oil also began to decline.

 

Futures on palm oil in Malaysia though, and fell on Friday by 2% to 2835 Ringgits/t or 683,46 $/t, but in General for the week rose by 3.5%, despite the decline in exports in August to 15% on the background of increasing production by 1.7-2% and stocks at the end of the month to 4.5-5%.

 

Futures for soybean oil in the United States on Thursday reached 747 $/t, but on Friday fell sharply by 3% to $725/t

 

Today's output on US exchanges will further increase the tension, so experts expect that from Tuesday the fall in oil prices and other commodities will continue on the background of increased sales for the profit-taking by small investors in recent months, as invested assets rose in price.

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