Prices for palm and soybean oil rose, supported by the April USDA report

In a new USDA report, the experts almost did not change the predictions of the consumption and export of vegetable oils, even though the epidemic Covid -19 reduction in the consumption of oil and energy.

In comparison with March balance forecast of production of vegetable oils decreased by 0.12 million tonnes to 204,42 million tonnes, 0.9 million tonnes will exceed the level of the previous season.

Evaluation of world consumption of oil reduced by only 1 million tonnes to 203,99 million tonnes, 3.7 million tonnes will exceed the past record of the MG. As a result, the forecast of world reserves increased by 0.9 million tons to 18.32 million tons compared with 22 million tons last season.

Analysts paid special attention to data on palm oil, which is used for biofuel production. They expected that its production will be reduced, as in Malaysia through the quarantine closed 75% of palm plantations. And due to the reduction in fuel demand in Indonesia is expected to reduce the demand for palm oil, 30% of which is added to diesel fuel.

However, experts from the USDA forecasts of production and consumption of palm oil in comparison with the estimates in March almost does not change. According to their calculations, production of palm oil will be 72,99 million tonnes, 1 million tonnes lower than the level of last year.

the Forecasts of export and import of palm oil also did not change, resulting in the estimate for ending stocks has reduced from 7.53 to 7.49 million tonnes, which is 3.1 million tonnes lower than in the last season.

After the publication of the report, futures for palm oil in Malaysia increased by 0.3% to 2312 Ringgits/t or 536,6 $/ton, despite the increase in palm oil inventory in the country by 1.7% to 1.73 million tonnes, though experts predicted at a level of 1.6 million tons.

in addition, the Malaysian government has allowed to resume work at the plantations, where no cases of the disease Covid -19, but even before this decision, the palm oil production in the country unexpectedly grew by 8.2% to 1.4 million tons.

palm oil Exports from Malaysia increased in March in comparison with February by 9.2% to 1.18 million tonnes, which also exceeded expert expectations.

the Forecast of consumption of vegetable oils is the world's largest importers – China and India in the April USDA report almost not changed, so analysts expect to see in the may balance revised figures which will take into account quarantine due to a reduction in consumption in April.