Palm oil prices updated their monthly high and supported soybean and sunflower oil markets

Since the beginning of the week, palm oil prices on the Malaysian stock exchange have increased by 4.6% amid heavy precipitation, which led to flooding and a shutdown of Palm harvesting, which will cause a reduction in production. In winter, production on plantations is traditionally low seasonally, so an additional drop in volumes due to rain has already led to a jump in prices. However, their further growth will be limited by the low export rates that analysts expect due to high prices.

According to the average estimate of ten planters, traders and analysts surveyed by Reuters, in December, production in Malaysia, which is the world's second producer of palm oil, will decrease by 8.6% compared to November to the lowest level since March of 1.49 million tons, exports – by 4.9% to 1.4 million tons, and stocks – by 4.9% to a 5-month low of 1.73 million tons.

Official data from the Malaysian palm Lia Council will be released on January 10, so markets will rely on information from analysts.

March palm oil futures on the Malaysian stock exchange rose 4.6% from Monday to 4,914 ringgit/ton or 1 1,174/ton, adding 10.5% of the price in two weeks.

March soybean oil futures on the Chicago Stock Exchange have risen 3.3% to.1,284/ton since the beginning of January, almost recouping the fall in December.

According to Conab, as of January 1, 98.2% of the planned areas were sown with soybeans in Brazil, and 90% of the first crop was sown with corn, compared to 99% and 88.5%, respectively, on the same date last year. In the south of the country, corn harvesting has begun, and 2.3% of the area has already been threshed.

Against the background of the growth of neighboring Palm and soybean oil markets, the offer prices of Black Sea sunflower oil also increased by 3 30/ton to F 1350-1380/ton FOB. Additionally, they are supported by a decrease in sunflower sales by producers during long weekends.