The price of palm oil rose 3% after the introduction of the quarantine

2020-03-25 12:22:12
Machine translation
The price of palm oil rose 3% after the introduction of the quarantine

Yesterday, the Malaysian government imposed a quarantine and announced the suspension until March 31, production on the plantations in the main provinces producing palm oil Tawau, Lahad datu, Cabatangan and Sabah to prevent the spread Covid-19.

 

Futures on palm oil exchange in Malaysia grew by 2.8% to Ringgits 2353/t or 531,39 $/t, even though announced in three weeks quarantine in India which is the largest buyer of palm oil, which will lead to a drop in demand.

 

Global demand for vegetable oil continues to decline. China, where most of the catering establishments were closed during January and February reduced the import of oil by 12% to 1.22 million tons In particular, imports of soybean oil decreased by 13% to 110 thousand tons and of palm by 28% to 610 thousand tons.

 

For the pandemic coronavirus the government of India announced a three-week quarantine and forbade citizens to leave the house. The world's second populous country is the largest importer of vegetable oils, so stop imports significantly affect the vegetable oil markets.

 

Ministry of shipping stated that the epidemic Covid-19 ports can be considered force majeure, therefore, will not be liable for payment of demurrage charges to shipping agencies, if the outbreak will not interfere with daily activities.

 

In the US may futures for soybean oil more expensive for the second consecutive day and yesterday rose 3.6% to 590 $/ton, supported by higher prices for palm oil and recovery of oil prices.

 

the Rapid strengthening of the stock markets, due to trump's promised $ 2 trillion to save the economy, also supported commodity markets.

 

the bid Prices for Ukrainian sunflower oil grew by $5/ton, up 660-665 $/t FOB, while the bid price remain at 640 $/t for the uncertainty of imports in India.

 

In Holland prices for rapeseed oil, which was previously proposed to put in may-July, at 660 €/t FOB, now fell to multi-year low of 645 €/t FOB DM after the prices for rapeseed in Paris, which declined with the decline in demand from biodiesel producers.

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