Prices for palm oil have fallen by 8% and dragging down the markets, soybean and sunflower oil
Stunning collapse in oil prices continues. If the us WTI crude oil fell by 300%, then on Tuesday, the price of Brent crude oil has fallen from 28 to 16.4 $/barrel, losing beginning of the week with 42%.
due to lack of demand, the fall in oil prices increased the pressure on the vegetable oil markets. Yesterday futures on palm oil exchange in Malaysia fell by 8.1% to 9-month low ringgit 2604/t or 469,84 $/t, showing total from January day falling and losing since the beginning of the year of 34%.
Last half of the year the prices for palm oil were actively growing with the support of the intentions of the authorities of Indonesia and Malaysia to increase the use of palm oil in biodiesel production to 30% and 20% respectively to offset the increase in production of oil in these countries on the background of the slowdown in exports.
However, the reduction of demand for automobile fuel due to quarantine restrictions, reduces the demand for palm oil from the biodiesel industry domestically, and exporters.
In February, Indonesia exported 2.54 million tonnes of palm oil and its products, which is 12% higher than in February 2019.
Malaysia in the first decade of April decreased compared to the same period in March palm oil exports and by-products 6.6-12%.
July futures for soybean oil in the United States for two days fell by 4.3% to a monthly low 565,2 $/t, while prices for soybeans yesterday played the fall on Monday and recovered to 308,5 $/t
prices of Argentine soybean oil dropped to the lowest March level 575-580 $/t FOB Up River, but buyers are holding back purchases in anticipation of further price declines.
Despite the fall in the markets, soybean and palm oil, strong demand from China supported prices demand for Ukrainian sunflower oil, but they are after the collapse of oil prices fell $10-20/MT FOB to 685-690 $/MT FOB, while sellers offer oil 700-710 $/t FOB for shipments in may-June. In the near future prices will continue to fall as buyers from India have suspended purchases in anticipation of lower prices.
the price of rapeseed oil in the Netherlands fell to 690-700 €/t, but demand remains very low due to the reduction of production and consumption of biodiesel.
a gradual recovery of the economy, which begins the EU will soon increase the demand for fuel, however, the movement of people is severely limited, and the company will try to transfer employees to remote work.
