A 5-6% rise in the price of palm and soybean oil will support prices for sunflower oil

Forecasts of a record heat wave that will prevail this week in the northern United States and in the prairies of Canada remain the main factors influencing the markets. This was taken advantage of by speculators, who continued to warm up the quotes of soybean and palm oil against the background of rising oil prices.

On the Chicago SWOT, July soybean oil futures rose 6% to.1,575/ton, and December – 5.8% to. 1,410/ton, adding 20% in price since the beginning of May.

Oil prices continue to rise amid the decision of OPEC+ countries to leave production unchanged until April 2022, although the recovery of the US and European economies may increase demand for oil.

Yesterday, August Brent crude futures on the London ICE exchange rose 1.8% to 7 71.8/barrel, while July WTI futures on the New York Mercantile Exchange (NYMEX) rose 1.8% to 6 69.2/barrel, rising 6.4% and 7.3% over the month, respectively.

Palm oil responds most quickly to oil market trends because it is most commonly used for biofuels. August futures on the Malaysian stock exchange rose 5.1% yesterday to 4,092 ringgit/ton or 9 992/ton. at the same time, the price of palm oil remained almost unchanged for the month, although in mid-May it reached 1 1,080/ton.

On the Dalian Stock Exchange, soybean oil futures rose 2.3% to 1 1,384/ton yesterday, and palm oil futures rose 2.9% to.1,223/ton.

Prices of offers of Ukrainian sunflower oil for delivery in June – July continue to fall and have already reached 1 1420-1440/ton FOB. However, there is almost no demand for it, as buyers actively buy oil from the new crop at a price starting from F 1200/ton FOB.

A rapid rise in the price of soybean and palm oil will support prices for sunflower oil and increase demand for immediate supplies, which will somewhat activate the domestic market of sunflower and sunflower oil.