The palm oil prices again decline and put pressure on the vegetable oil markets

2019-07-09 12:02:46
Machine translation
The palm oil prices again decline and put pressure on the vegetable oil markets

Yesterday futures on palm oil in Malaysia fell 0.8% to 7-month low 469,9 $/t due to increased production and reduced demand in July, resulting in the introduction of India's tariffs on imports of stearin palm oil.

 

With the beginning of the year production growth was 9%, and due to its seasonal growth in the second half of the year, the reserves will continue to increase.

 

the Malaysian Government to stimulate domestic demand introduced V7 for use in transport and industrial sectors of the country the use of a mixture of 7% palm biodiesel. Also in April signed an agreement with China to supply at least 1.9 mln t palm oil in 5 years, starting in 2019.

 

According to experts, after the reduction in may palm oil inventory to 2.46 million tons, in the future they will exceed 3 million tons.

 

On the data about crops and increased soybean exports from the United States in Chicago yesterday futures on soybean oil increased to 625 $/t, and the beans 328,7 up to $/t

 

For the week, soybean exports from the USA increased by 5% to 757,9 thousand tons, of which 243 thousand tons were shipped to China.

 

According to the NASS USDA on July 7th in the USA with soybeans planted 96% of the area against 99% in average for 5 years. Shoots were obtained on 90% of the area versus 98% on average, flowering began on 10% of the area against 32% on average, while crop condition has deteriorated by 1% to 53% against 71% on this date last year.

 

In Ukraine, the containment of sales producers of sunflower and a shortage of supply to keep oil prices at a high level 725-735 $/t FOB for shipments in July-August, whereas for shipments in October-November they dropped to 685 $/t FOB.

 

as a Result, the increase in the supply of rapeseed prices at the port fell to 300-400 UAH/t to 11900-12000 UAH/t or 395-396 $/t Processors do not hurry to buy raps through low oil content due to heat during grain ripening.

 

the price of rapeseed oil in the Netherlands rose to 724 €/t DM FOB for shipments in August-September and 732 €/t for deliveries in November-December.

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