Palm oil continues to rise despite the bearish balance of vegetable oils

Palm oil on the stock exchange in Malaysia is expensive for the fifth consecutive session, despite the increase in forecasts of world production and ending stocks of vegetable oils in the February USDA balance.

On forecasts of increasing exports of palm oil from Malaysia, the market reacted more than the growth of production, while the prices for soybeans and soybean oil on the stock exchange in Chicago has declined due to the neutral balance of soy.

In a new report forecast global production of vegetable oils increased by 0.16 million tonnes to 209,58 million tonnes (207,33 million tonnes in 2019/20 MG), resulting estimate for ending stocks increased by 0.9 million tonnes to 21,66 million tonnes (23,78 million tonnes in 2019/20 MG), and most will grow palm oil stocks.

the April futures for palm oil on the stock exchange in Malaysia for a week grew by 12.5%, in particular yesterday 1.6% to 3629 ringgit/t or 897,8 $/t on predictions of the increase in exports of palm oil in February, although in January exports exceeded forecasts traders.

According to a monthly report LRAS, palm oil stocks at the end of January increased compared to the end of December 4.7% to 1.33 million tonnes, as production fell by 15.5% to the lowest since February 2016 the level of 1.13 million tonnes, while exports fell by 42% to 947 thousand tons.

the March futures exchange in Chicago fell yesterday:

• in soybean oil by 1.6% to 1003,7 $/t,
• to soy – 3.7% to 494,7 $/t,
• soybean meal by 3.8% to 464,3 $/t

On the Chinese stock exchange in Dalian futures palm oil rose 1% to 1066 $/ton, and soy – 1.2% to 1237 $/t

In Ukraine, the price of sunflower oil remained at the level of $1,280-1,300/ton FOB, while the purchase price of sunflower on the background of strengthening of the hryvnia exchange rate and the decline in demand for oil has fallen to 21800-22300 UAH/t (785-800 $/t with delivery to the plant.

Forward price for sunflower seeds new crop delivered to the plant is 500 $/ton, however, active sales no. The forward rates for rape are 480-490 $/t for delivery at the port, which exceeds last year's prices, but does not satisfy the farmers given the high current prices for sunflower and soybean.