Drop of vegetable oil markets puts pressure on the purchasing prices for sunflower
Despite the rapid yesterday's rise in price of Brent crude oil at once on 4%, quotations of palm and soy continue to fall under pressure of weak demand from China and India, with increased sentences. Lower prices for vegetable oils presses for the purchase price of sunflower in Ukraine.
May futures on palm oil exchange in Malaysia yesterday fell 3.5% to three-week low 2547 Ringgits/t or 611,74 $/ton amid predictions of increasing production and falling demand from China, where the quarantine closed most of the establishments and, even, start delay of payments of wages that reduces the purchasing power of the population.
the depreciation of the Malaysian ringgit against the dollar to its lowest since mid-December level was unable to support the quotes.
Futures for soybean oil in the United States after palm yesterday fell 2% to 670,8 $/t. the market under pressure from the slowdown in the soybean processing in the United States in February, while in January, the American enterprises increased in comparison with December volume of soybean by 87 thousand tons to a record 4.8 million tons.
Cancel China duties on U.S. soybeans had no impact on the quotes that are left at 332 $/t due to the pressure of low demand from China and a record soybean crop in Brazil.
Prices for April delivery of Argentinean soybean oil stabilized at $697/t FOB Up River, however, a gradual decline in demand due to the increase of offers of the new crop will further lower quotes.
the fall of the markets for palm and soy oil, and low demand from buyers has fallen off the price of Ukrainian sunflower oil to 3-month low 700-715 $/t FOB for shipments in March-April. Prices for delivery to India also dropped to 780-790 $/t CIF as buyers hold back purchases in anticipation of further declines.
the Purchase price of sunflower in Ukraine continue to decline for the week fell by 200-400 UAH/t to 10300-10600 UAH/t with delivery to the plant. However, a further fall in prices stopped active sales on the part of manufacturers that drove the processors for the accumulation of quantities of raw materials to maintain prices at a high level.
Due to higher prices on oil and sunflower seeds Ukraine increased compared to the previous season, the volume of processing of sunflower by 17% to 6.1 million tonnes, of which 1.2 million tonnes were processed in January.
the price of sunflower oil in the EU also declined to 745 $/t FOB Sixports for deliveries in Q2 and up to 765 $/MT FOB Sixports - in the 3rd quarter.