The vegetable oil markets have fallen due to forecasts of a sharp reduction in demand

the Rapid proliferation of new coronavirus outside of Asia increases fears of lower global demand. Yesterday, stock exchanges reacted to this panic by falling oil prices and vegetable oil from 3-4%.

After the previous crash last week, the markets began to recover amid the slowdown in the spread of the virus in China. Experts believed that due to the strict quarantine authorities of China have managed to localize the area of disease. However, at the output there is information about the increase of cases and deaths from the virus Covid-19 in Italy, Iran and South Korea, which again weighed on stock prices.

the price of Brent crude yesterday fell by 6.5% to 55.2 $/the barrel, demonstrating the biggest daily decline since September of last year. However, they later rebounded to 56.5 $/barrel in General the day down 3.5%.

May futures on palm oil exchange in Malaysia yesterday fell 3.1 percent to the lowest since November 8, level 2543 Ringgits/t or 611 $/t. prices presses possible reduction in demand due to the increase in the production of palm oil that in Malaysia during 1-20 February increased by 17.4% compared to the same period in January.

May futures for soybean oil in Chicago yesterday, have fallen by 3.7% to 656,1 $/t, while prices for soybeans fell by only 2% to 325 $/t due to hopes on increased purchasing by China.

Ukrainian sunflower oil continues to become cheaper after palm and soy oils. The bid price down to the level of November 690-700 $/t FOB, but buyers are holding back purchases in anticipation of further price declines.

Spot prices for rapeseed oil in the Netherlands fell from 10 to 14 €/t to 788-790 €/t, while rapeseed futures fell 7.5 €/t up to 392,5 €/t or 426,3 $/t

Recovery of demand for vegetable oil will be very slow, since the introduction of quarantine regulations in many regions will lead to a reduction in the number of tourists and reducing consumption.