Prices for vegetable oils turned down after reaching a monthly high
Last week, the growth of vegetable oil prices on world markets accelerated amid high oil and gas prices and in anticipation of increased demand.
After the recent decline, oil and gas prices resumed their growth, which led to an increase in palm oil prices to record levels.
December palm oil futures on the Malaysian stock exchange on Thursday rose 3.1% to 4,595 ringgit/ton or.1,099/ton on data on a 2.3% reduction in production in September and a sharp increase in exports by 34-40% (according to AmSpec and ITS surveyors). On Friday, quotes fell by 1.9% to 4,505 ringgits/ton or 1 1,078/ton against the background of profit-fixing by traders, so the weekly growth was 1.4%.
December soybean oil futures on the Chicago Stock Exchange on Thursday rose to a monthly high of 1 1,295/ton, but on Friday fell 1% to.1,282/ton, almost in line with the level that was a month ago.
Prices were supported by USDA data on an increase in soybean processing volumes in the United States in August compared to July from 4,526 to 4,579 million tons. in general, in 2020/21 MG, the volume of processing amounted to 58.24 million tons, which corresponds to the USDA forecast. Soybean oil reserves in the United States amounted to 991 thousand tons, which is slightly higher than traders ' expectations.
In Ukraine, under the pressure of low export demand, the supply prices of sunflower oil are gradually decreasing to the level of demand prices that did not exceed F 1,300/ton FOB.
Sunflower supplies to factories are becoming more active due to the high prices offered by processors for the first deliveries. Therefore, the reduction in oil prices will lower this week the purchase prices for sunflower (with an oil content of 49%) from 18800-19500 UAH/ton to 18500-19000 UAH/ton.
Additionally, the vegetable oil markets this week will be pressured by the lack of activity on the part of the main importer – China, where the founding day of the people's Republic of China will be celebrated from October 1 to October 7, but given the weekend, the holidays may last until October 10.
