The collapse of oil prices puts pressure on prices of vegetable oils

Another collapse in oil prices increases the pressure on palm oil prices, which is very dependent on the demand for automotive fuel. This, in turn, lowers prices for soybean and sunflower oil.

Futures on palm oil exchange in Malaysia yesterday dropped 2.8% to its lowest in 9 months level 2018 Ringgits/t or 463,59 $/t

the projections for the increase in palm oil production in Malaysia is confirmed. According to the Association of processors of palm oil for 25 days in April, production increased in comparison with the corresponding period of March 27.9%. However, the exports during this period increased by only 8.8% to 866,2 thousand tons

Futures for soybean oil in the U.S. yesterday fell 2% to 560 $/t, resulting in the award against palm oil rose to its highest level since October – 96 $/t

bid Prices of Ukrainian sunflower oil will remain at the level 685-700 $/t FOB for shipments in June – September, but demand is very low. Award for sunflower oil relative to palm and soybean rose sharply and exceeded 100 $/t, which is not peculiar to the oil market. Soon this will reduce the demand for expensive oil in one palm.

Active sowing of sunflower in Ukraine and Russia, where they plan the acreage under it to increase by 5-10%, since may will push the prices of sunflower oil from the seeds of the next harvest.

As of April 23, in Ukraine sunflower sown on 3.2 million hectares or 52% of the forecast, in Russia – 1.5 million hectares or 18.2 per cent of the forecast. Precipitation in the next 5-7 days will improve moisture of the soil and increase the potential for future harvest.

the price of soybean oil in Argentina decreased to 560 $/t FOB Up River, but they were supported by a decline to the lowest level in 50 years, increased water level in the river Parana, which the agricultural products are delivered to export ports of the country.