Soybean oil prices have fallen, but palm and sunflower oil prices remain high
Hopes for successful talks between Ukraine and Russia added optimism to commodity markets earlier in the week. Oil prices fell slightly on Monday, followed by vegetable oil prices on Tuesday.
However, it later became clear that Russia has no plans to stop the war, so yesterday May futures for Brent oil on London's ICE Futures rose 3% to $ 113.5 / barrel, and WTI oil on the New York Mercantile Exchange ( NYMEX) - by 3.5% to $ 107.8 / barrel. However, today the fall resumed and futures traded at $ 108 / barrel and $ 101.6 / barrel, respectively.
Prices are falling as pressure on Russia grows, which should make it impossible to supply and pay for Russian oil on the world market as a result of sanctions. At present, the discount on Russian urals oil already exceeds $ 30 / barrel and will continue to increase.
Over the past week, May palm oil futures in Malaysia, which are usually sensitive to oil prices, remained stable at 6,000 ringgit / t, but fell 1.5% yesterday to 5,930 ringgit / t or $ 1,410 / t.
Russia's permission for foreign ships to leave Ukraine's blocked ports could lead to an increase in sunflower oil supply. This news slightly reduced the prices of soybean oil, which remains the most affordable on the world market.
May futures for soybean oil on the Chicago Stock Exchange fell 3.5% on Monday to $ 1592 / t, losing 5.2% for the week.
Further blockade of Ukrainian ports will exacerbate the shortage of sunflower oil, and Russia's decision to limit sunflower oil exports will continue to rise.
World demand for sunflower oil after a temporary decline to $ 1,900 / t FOB this week again exceeded $ 2,000 / t FOB for supplies in April - May and is likely to remain at such a high level for a long time, as sunflower sowing areas in Ukraine due to fighting action in the south and east will decrease by 20-25%, which will lead to a shortage of sunflower oil next season.
Therefore, the civilized world must stop Russian aggression by maximally boycotting trade with the occupier, as well as an economic blockade, so that Russians, 86% of whom support fratricidal war, are faced with a choice - either continue fighting, or poverty and oblivion.
