Despite the decline in oil prices prices for vegetable oils is growing
the drop in oil prices to 17-year low stock prices of palm and soybean oil almost did not react, and even rose slightly on Friday on the background of the selected States, many packages support the population and economy that will soon support the demand for products.
futures on the American WTI crude oil fell 11.6% to 20.6 $/bbl, and Brent crude by 15% to 23.5 $/barrel due to the rapid spread of the virus Covid-19 in the US and the EU, which will lead to a tightening of quarantine measures and reduction of oil demand from the aviation and road transport.
June futures on palm oil in Malaysia on Friday rose 0.9% to 2378 Ringgits/t or 549,57 $/t, showing a weekly rise of 3.9% on the back of supply problems and announced the government program of support of the economy amounting to $ 58 billion.
Indonesia is the world's largest producer of palm oil, announced that in order to promote exports from April to zero export duty on palm oil due to the sharp decline in prices.
After palm oil futures soybean oil in the U.S. rose in July by 0.5% to 595,2 $/t and in total during a week – almost 4%.
After the introduction of India's rigid quarantine for 1.5 billion population, the demand for Ukrainian sunflower oil remains in question.
According Agrisensus, quotes for Ukrainian sunflower oil per week decreased of $8/t to 653 $/t FOB, while the bid prices are on Revi 660-680 $/MT FOB, and bid – level 640-645 $/t FOB depending on the delivery terms.
Increase of purchasing prices for sunflower in Ukraine for a week from 6% to 10800-11000 UAH/t with delivery to the plant reduces the refining margin, against the background of declining demand and prices for oil may stop some processing plants.
the Price of rapeseed oil in the Netherlands is growing for the third consecutive session after futures on rapeseed in Paris. But the strengthening of the Euro against the dollar over the week to 3.5% capped gains.
Contracts on delivery in may-July last week increased by 7 €/t to 655 €/t, but in the beginning of the week decreased by 20 €/t due to low demand from the biodiesel sector in the EU.