Prices for vegetable oils turned down

2020-07-28 12:03:06
Machine translation
Prices for vegetable oils turned down

After a long period of rise in prices of vegetable oils, especially palm, the dollar turned down against the improvement of the weather and the condition of soybean crops in the U.S., and also forecasts production growth of palm oil in Malaysia in July and in the fall.

 

After rising for the previous two weeks by 14.5%, yesterday, October futures for palm oil in Malaysia fell by 4% to 2672 Ringgits/t or 628,4 $/t. Traders were expecting a decline in production in July due to flooding and a shortage of labor, but it has decreased slightly, which led to falling prices.

 

According to the Association of palm oil South of the Peninsula (SPPOMA) during July 1-25 palm oil production in Malaysia decreased by 11%, whereas in the period of 1-20 July, it was 17%. At the same time palm oil exports for July 1-25 rose previously by 1-4%, while experts had expected growth of 6%.

 

it is Expected that Malaysia and Indonesia are the main producers of palm oil, to increase its production in the near future against the backdrop of high prices and active demand. However, he gradually starts to decrease due to too high prices compared to higher quality soybean and sunflower oils, which quotations in the last time I grew, and as the new harvest will start to drop. The spread of the prices of palm and soybean oil fell to a minimum 30-35 $/ton, and sunflower – up to 110-120 $/t

 

Futures for soybean oil in the U.S. yesterday fell 3% to 654,1 $/t after the price of palm oil and against the background of improvement of the condition of soybean crops in the United States. Prices for soybeans fell 1% to 326 $/t, but they were supported by purchases of soybeans by China.

 

According to the USDA report, the number of soybeans in good or excellent condition for the week grew by 3% to 72%, while a year ago the figure was 54%. In the flowering stage are 76% of crops compared to 52% last year and 72% on average for 5 years. Pods formed by 43% compared with 17% last year and 36% on average for 5 years.

 

Prices for Ukrainian sunflower oil of the new harvest under the pressure of low demand was down to 760-770 $/t FOB, but buyers for delivery in November and December offer no more than $740-750/MT FOB.

 

the price of rapeseed oil in the EU remain at 760-770 €/t FOB Dutch, but a sharp strengthening of the Euro reduces the competitiveness of the European oil. The speculative rise in price of the August rapeseed futures on the stock exchange in Paris by 4.75 €/t to 382,25 €/t due to the need to close contracts before the end of the week.

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