Palm oil fell by 2.7% from the beginning of the week

2019-04-12 12:57:10
Machine translation
Palm oil fell by 2.7% from the beginning of the week

the Decline in palm oil and the results of the tender in Egypt were the main factors of pressure on the price of sunflower oil this week.

 

Starting Tuesday quotes on palm oil in Kuala Lumpur decreased by 2.7% to 523,1$/t for delivery in may on the background information from the Malaysian Council of palm oil (MPOB) on the increased production and ending stocks above expectations of traders.

 

According to the report, palm oil production in Malaysia in March compared to February increased by 8.3% to 1.67 million tons, exports increased by 22.4% to 1.62 million tons, and ending stocks declined by 4.6% to 2.92 million tons. The decline in quotes looks more like a speculative, because the report data confirm the increased demand of palm oil exports from Malaysia, and the quotations of palm oil in China for the week decreased by only 0.7% .

 

Futures for soybean oil in Chicago also with the beginning of the week remains at a stable level around $645/t, as soy prices remain stable and demand high. Quotes of Brent crude oil continue to be strengthened and traded at $71,05 per barrel.

 

Yesterday, the operator of the Egyptian GASC bought a large amount of vegetable oil with delivery in June, namely 53,5 thousand tons of sunflower oil at a price of 699$/t CFR, which is $ 5 more than the previous tender and 59.5 thousand tons of soybean oil including 30 thousand tons of imported soybean oil at a price of about 692$/t CFR, which is $ 15 more than the previous tender.

 

This has supported prices for Ukrainian sunflower oil, which continues to rise, adding over a week 5-10 dollars.

 

the offer Prices for sunflower oil rose to 665-670$/t FOB, as the processors are unable to buy enough sunflower seed to form prices for sale. Manufacturers continue to hold back sales in anticipation of further growth of prices for sunflower oil.

 

 

 

According to the April forecast by the USDA, imports of sunflower oil to India in 2018/19 MG will be 2.4 million tons, which is almost 10% higher than the previous estimate (2.2 million tonnes), but will not exceed the amount of import in 2017/18 MG was at the record 2.5 million tons.

 

Recall that the main supplier of these products in India is Ukraine with a share of the supply of 96% in 2017/18 MG. This season, India has a higher interest sunflower oil, origin from Argentina in connection with the increased supply.

 

In September-February of the current season Ukraine exported to India 1.2 million tons of sunflower oil, which is 3% higher than the same period last season.

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