The extension of the quarantine in India before may 14, increases the pressure on prices of vegetable oils

Recovery in oil prices at the end of last week supported the quotations of palm oil on Thursday rose by 2.8% to 2088 Ringgits/t or 485,8 $/t

But on Friday the news of the extension by India of quarantine until may 14 and the possible introduction of U.S. tariffs on Chinese goods again turned the vegetable oil markets down, as demand continues to decline.

experts estimate that India, the world's largest importer of vegetable oils in the current season will reduce their imports compared to last year by nearly 2 million tons.

the Monthly consumption of vegetable oils in the country after the imposition of quarantine has dropped from 2 to 1.4 million tonnes, with most reduced consumption of palm oil, which is preferably used in the cafes and restaurants, while demand for sunflower and soybean oil, which is consumed mostly at home, has not changed.

the price of palm oil has lost 32%, primarily due to lower demand from the biofuel industry. While the reduction in demand from other consumers is not too affected the prices.

the Seasonal increase in palm oil production in July would further enhance the pressure on the quotes.

Futures for soybean oil in the United States on Friday fell 1.1% after the price of soybeans, which is lowered against the backdrop of escalation in relations between the US and China.

President trump has accused China of artificial creation coronavirus Covid-19, although intelligence 5 countries, particularly the United States, reported that it is not. Trump also threatened to pull out of the signed trade agreements, if China does not activate the purchase of American goods.

Prices for Ukrainian sunflower oil remained unchanged at the holiday reduced trading activity.

Good rates of sowing of sunflower in Ukraine and Russia due to the possible increase in acreage over the forced re-sowing of spring crops in the South of Ukraine increases the supply Outlook weighs on prices of sunflower oil from the seeds of the next harvest.

According to the forecast of the USDA, Russia in 2020/21 MG collect record to 15.65 million tonnes of sunflower, which exceeds 15.4 million tons last year. Production of sunflower oil will increase to 5.9 million tonnes, however, due to increasing domestic consumption, exports will remain at the level of 3.26 million tonnes.