Vegetable oil prices remain under pressure from uncertainty with demand

The prolonged fall in oil prices increased pressure on vegetable oil prices and limited the increase in demand for them from the bioethanol industry. Even yesterday's increase in oil prices by 2.2-2.8% did not significantly affect the quotes of vegetable oils, so traders are waiting for the results of importers ' tenders.

On November 25, the Egyptian state agency GASC will hold an international and domestic tender for the purchase of 10 thousand tons of sunflower and 30 thousand tons of soybean oil for delivery on January 15-31, which may provide additional support to prices.

February palm oil futures on the Malaysian stock exchange fell 2% yesterday to 4,852 ringgit/ton or 1 1,159/ton on data on an increase in production in the period November 1-20 and forecasts for its increase next year. The Malaysian palm oil Association (MROA) estimates that in the 20 days of November, palm oil production in the country increased by 0.35% compared to the same period in October, although experts expected it to decrease by 1-2%. At the same time, exports during this period increased, according to surveyors, by 9-25%, while it was expected to increase by 10-30%.

On the Dalian stock exchange, palm oil futures fell 2% to.1,490/ton, and soybean futures fell 1% to. 1,465/ton.

December soybean oil futures on the Chicago Stock Exchange rose another 1.4% to.1,326/ton yesterday, adding 3.5% from Friday on forecasts of increased demand for fuel and food during the holidays.

Prices for soybean oil remain lower than for sunflower oil, so they have the potential for growth. In Argentina, offer prices for January soybean oil supplies increased to F 1,400/ton FOB, which almost corresponds to the level of sunflower oil prices.

In Ukraine, the supply prices of sunflower oil increased to 1 1410-1430/ton FOB, and demand prices – to.1400/ton FOB against the background of a decrease in supply due to the containment of sunflower sales by producers. Processors raise purchase prices for sunflower seeds to attract the necessary volumes of raw materials, but farmers postpone sales to January – February, expecting that prices will rise to the level of February last year.

The state-owned Turkish agency TMO purchased 6 thousand tons of Russian sunflower oil from Aston at a price of 1 1,471/ton CFR, which added optimism to traders about price growth on the eve of tenders in Egypt.