Prices for vegetable oils were again influenced by various factors

This week, vegetable oil prices have moved in different directions under pressure from various factors, but the main pressure is exerted by a gradual drop in oil prices, and, as a result, palm oil, whose prices have recently even exceeded the price of soybean oil.

Oil prices fell another 3% on news that the leaders of the United States and China discussed the possibility of reducing oil prices by increasing supplies from reserves, as well as against the background of tougher quarantines in Europe due to the growing incidence of Covid-19.

January Brent crude futures fell more than 3% to a monthly low of.79.8/barrel, while WTI crude futures fell 3% to. 77.5/barrel.

The United States started selling oil from the strategic reserve, and over the past week it sold 3.2 million barrels, and since the beginning of the year – 32 million barrels. If a decision is made to sell 50 million barrels, oil prices will continue to fall.

February palm oil futures on the Malaysian stock exchange rose on Monday, fell 3.7% on Tuesday, and recovered 2.3% on Wednesday to 4,899 ringgit/ton, or.1,173/ton, on forecasts for increased exports and a seasonal decline in production in the second half of November. Indonesia, the largest exporter of palm oil, in October increased its exports by 7% compared to September to 2.1 million tons. however, traders believe that the pace of exports will soon decrease, as buyers will prefer cheaper and better soybean and sunflower oil.

On the Chinese stock exchange, palm oil futures rose 1.9% to.1,515/ton, while soybean futures rose 1.2% to. 1,502/ton.

The sale of 30 thousand tons of soybean oil from the United States to India supported quotes, so December soybean oil futures on the Chicago Stock Exchange after falling on Monday from Tuesday recovered to 1 1,308/ton.

Prices for soybean oil in Argentina remain at the level of F 1360-1400/ton FOB, so soon Indian importers will step up the purchase of American soybean oil from the new crop.

In Ukraine, the supply prices of sunflower oil decreased to 1 1,390-т 1,400/ton FOB, while demand prices remain at 1 1,380/ton FOB.

The tender in Egypt, where GASC purchased only 12 thousand tons of sunflower oil for delivery in January at a price of C 1,425/ton C&F, showed that importers are reducing the volume of purchases due to too high prices.