The collapse in palm oil prices will increase pressure on the quotes of Ukrainian sunflower oil

The decision of the Indian authorities to reduce the export duty rate on crude palm oil in August by 20% to 9 93/ton due to the indicative price from which the duty is calculated, yesterday collapsed palm oil quotes on the Malaysian stock exchange by 3%, which offset the growth since the beginning of the week. Due to the reduction of the indicative price to 2 268/ton, all fees for palm oil exports in August will decrease by 8% compared to July to.268/ton.

October palm oil futures on the Malaysian stock exchange hit a three-month high of 4,422 ringgit/t or.1,045/t on Tuesday, but fell 3% yesterday to 4,308 ringgit/t or. 1,018/t on concerns about a possible reduction in exports of these products from Malaysia amid increased competition with Indonesia in the Indian market.

On the Dalian stock exchange, palm oil futures also fell 1.5% to.1,295/ton yesterday, and soybean futures – 2.3% to. 1,377/ton.

The high level of palm oil prices supports the prices of Ukrainian sunflower oil, which has been actively rising in price over the past week, even despite favorable weather and forecasts of a good harvest in Ukraine and Russia.

Prices of offers of Ukrainian sunflower oil for delivery in August – September increased to 1 1270-1300/ton FOB, but buyers are more interested in offers from the new crop with a price in the range of 1 1200-1220/ton FOB.

Purchase prices for sunflower with delivery to the plant in August remain at the level of 17,000 UAH/ton or 6 630/ton, and forward prices for deliveries in September – October – at the level of 550-560 $/ton.