Prices for palm oil and soy oil on Friday declined a bit

2021-03-01 12:41:00
Machine translation
Prices for palm oil and soy oil on Friday declined a bit

Last week the price of palm and soybean oil on world markets increased by 6%, however, on Friday turned down under the pressure of declining equity markets and oil.

 

the May futures of palm oil on the stock exchange in Malaysia on Friday fell by 1.1% to 3742 ringgit/t or 924,5 $/t, while by the end of the week grew by 6.2% with a stronger-than-expected exports.

 

For February 1-25 palm oil exports from Malaysia increased in comparison with the corresponding period of January 8-14%, but the production is also increasing, which increases pressure on prices.

 

According to the Council of the Malaysian palm oil producers (MROs), in 2020, the country has reduced the export of palm oil compared with the year 2019 by 5.97% or 1.1 million tonnes to 17,37 million tons.

 

On the stock exchange in Dalian futures palm oil on Friday fell by 0.2% to 1170 $/ton, and soy – 1.3% to 1338 $/t FOB, putting pressure on the quotes on the Chicago CBOT.

 

According to the National information center for grain and oil (CNGOIC), soybean stocks in the country for the week rose to 930 thousand tons to a high level of 5.71 million tonnes, However, they may be reduced due to the delay in the collection and export of soybeans from Brazil, and defaults on some Brazilian farmers, who had previously sold soy at competitive prices.

 

All Chicago CBOT may futures for soybean oil following the decline in soybean prices on Friday fell over 2% to 1080 $/t, while for the week increased by 6%.

 

against the background of the limited volume of the bid prices of Ukrainian sunflower oil remain at 1480-1500 $/t FOB, although the prices of demand remain unchanged.

 

the Decline in Ukraine, a VAT rate of sunflower from 20% to 14% will reduce sales by manufacturers, which will not receive the 6% of the expected price. However, reducing the rate of win processors who will spend 6% less working capital, and will expect 6% less compensation from the budget in the export.

 

the Producers will now get 6% less and will pay 6% lower VAT into the budget at the end of the year, but revenues will decrease, affecting the economy, which have reinvested earnings in development. The purchase price of sunflower for the week decreased by 80-100 $/t to 22500-23000 UAH/t or 800-821 $/ton (with VAT = 14%).

 

This week markets will remain under pressure from the news from South America, particularly Brazil, which will accelerate the collection of a record soybean crop and the sowing of maize.

Visitors’ comments (0):