Falling prices for palm oil presses for vegetable oil markets
By voting in the European Parliament on 28 November it was decided to exclude biofuels made from palm oil, from the list of the Directive on renewable energy in the EU.
Officially, this decision is not yet published, but, if adopted, trade relations between the EU and Malaysia much more complicated.
Malaysia declares that the restriction of supply of palm oil and its products is a direct violation of EU commitment to the WTO, which will lead to a significant drop in the economy of the country.
Earlier, Malaysia has agreed to provide environmental and rational use of natural resources in the production of palm oil in order to maintain the position of the main supplier of these products in the EU. All manufacturers undergo a single certification, and exporters - additional audit according to the European standards.
the Reduction in demand from the EU will be another lever of pressure on the price of palm oil after India imposed import duties.
Since the beginning of November, the price of palm oil in Kuala Lumpur fell by 10% to 2563 ringgit/ton or 626 $/t
SGS Experts believe that palm oil exports from Malaysia will be reduced from 1.41 million tons in October to 1.31 million tons in November.
Depreciation palm oil amid bumper crops of soybeans weighs on the price of soybean and sunflower oil.
In Ukraine, sunflower oil during the week fell by 5-10 $/MT to the level 740-745 $/t FOB – Black sea ports.