Palm oil market continues to put pressure on the price of sunflower oil
experts predict ISTA Mielke Gmbh (Oil World), in 2018/19 MG world production of palm oil will rise to 74.9 million tons, which greatly exceeds the predicted USDA the volume of oil production in 2017/18 MG – 70.5 mln t
the Largest producers of palm oil in 2018/19 Mr will remain Indonesia (43 million tonnes) and Malaysia (20.1 million tons).
According to analysts, in 2019/20 MG global demand for palm oil for the first time in 20 years could be reduced due to reduced demand from China and the EU, as well as increase the production of other types of vegetable oils by India, which is the main importer of palm oil.
the EU has reduced imports of Malaysian palm oil from 406 thousand tons in February 2018 to 264 thousand tons in February 2019, not only because of the protests of environmentalists, but also due to the increase of EU imports of cheap soybeans from the United States, resulting in increased production of soybean oil in the EU.
China has reduced imports of palm oil from Malaysia from 265 thousand tonnes in January to 99 thousand tonnes in February 2019.
Together, India, China and the EU bought 73,4 million tons or 46% of total world imports, so the reduction of demand will substantially change the balance of production and consumption of palm oil.
In Kuala Lumpur, palm oil prices on Monday fell 1.8% to 527,75 $/t
Under the market pressure on palm oil prices demand for Ukrainian sunflower oil decreased to 655-665 $/t FOB for shipments in March-April. After them the purchase price of sunflower decreased to 10300-10700 UAH/t with delivery to the plant and 9700-9800 UAH/t on the basis of the Franco-economy. the strengthening of the hryvnia to UAH 26,8/$ increases the pressure on prices.