Strong export demand supports the price of palm oil
Export demand for palm oil is constantly increasing. On the eve of the festival season, China and India are stepping up purchases.
According to surveyor Intertek during September 1-20 Malaysia exported 852,2 thousand tons of palm oil, which is 25.4% higher than in the same period of August. While surveyor SGS estimated exports to grow by 26.8%.
In the past month, palm oil prices rose by 7.2% to $700/t stronger demand from major importers will support oil prices in the near future.
Ukraine within 10 months of the season 2016/17 increased the import of palm oil in comparison with the same period last year by 22%. However, this does not mean that the average citizen began to consume more products with palm oil, since almost 40% of dairy and confectionery products, which include the specified oil delivered to world markets. Local manufacturers are increasing the production of finished products and increase its exports.
Due to the high demand for such products as yoghurt, cheese, butter, spreads and confectionery products, their production started to use vegetable fats which further reduce the cost of finished goods. Manufacturers actively replace animal fats with vegetable to have on the background of rise in price of resources to keep the cost of its products unchanged.
During January-July 2017, Russia reduced the import of palm oil and its fractions by 3.1% in the same period of last year to 462 thousand tons.