After updating of records of prices for vegetable oils have started to fall

Last week stock quotes of soy and palm oil have once again reached the highs on the background of prolonged strikes in Argentina, port workers first, and then farmers, who for almost a month stopped exports of soybean meal and oil, soybean and corn, which led to a rapid increase in world prices.

After a three-day strike by farmers, dissatisfied with the prohibition of export of corn, yesterday, the Argentine government abolished the complete ban on exports and imposed restrictions export sales of corn until March 1.

Problems with exports and the shortage of rain in Argentina were the main drivers of price rise of soybean oil, while palm oil prices rose against the background of reduced production and increased demand due to limited supply of soy and sunflower oil.

Futures on palm oil exchange in Malaysia in the first week of the year increased by 7.7% to a record 3877 Ringgits/t or 957 $/t. However, due to the reduction in shipments as the recovery of exports from Argentina during the second week of January, palm oil prices declined by 2% to 3797 Ringgits/t or 937,5 $/t

According to the Council on palm oil Malaysia (LRAS), in December palm oil stocks in the country decreased by 19% to the lowest since July 2007 level – of 1.26 million tons, even though it exceeded expert expectations. The exports increased in November by 24%, which contributed to higher prices. But in early January palm oil exports declined in comparison with the similar period of December to 35%, - reported survery. In addition, prices under pressure from the decline in oil prices on world markets.

Futures soybean oil on the stock exchange in Chicago last week reached 970 $/t, however, over the last two days decreased by 2.7% to 943 $/ton following the decline in oil prices and palm oil.

Recent rains in Argentina will improve the condition of soybean crops and will reduce the moisture deficit, so it is too early to talk about lower production forecasts. Analysts expect the January USDA report forecasts soybean crop in Argentina and Brazil will be reduced to 1-1,5 million tons.

against the background of problems with the export of soybean oil in Ukrainian sunflower oil rose to a record 1300 $/t FOB, though buyers are not willing to pay more 1250-1280 $/t FOB.

Today, USDA will publish the global balance of vegetable oils and oilseeds, which will become the new markers for the markets, especially on the background of prolonged lack of precipitation in South America.