Prices for soybeans and sunflower in Ukraine fall under the pressure of falling markets vegetable oils

2020-12-03 12:07:32
Machine translation
Prices for soybeans and sunflower in Ukraine fall under the pressure of falling markets vegetable oils

Global prices for vegetable oil continued to decline amid improving weather conditions in South America, where after planting the rains. In addition, the sharp rise in prices caused by strong demand from China, has now led to its decrease, which in turn increases pressure on the quotation of soybean and sunflower oil leads to a fall in procurement prices for soybeans and sunflower in Ukraine.

 

Yesterday on the stock exchange in Dalian futures for palm oil fell 2.2% to 6514 yuan/ton or 992,65 $/ton, and soybean oil – by 0.6% to 7676 yuan/ton or 1170 $/t

 

On the stock exchange in Malaysia futures for palm oil fell yesterday by 0.9% to 3316 Ringgits/t or 813,7 $/t due to reduced export demand, however, a further fall in prices will be limited by reduced production.

 

Futures on soybean oil at the Chicago Board of CBOT yesterday dropped to 818 $/t in the background of the forecasts increase in soybean crop in Brazil. Experts Datagro raised its forecast of soybean production in Brazil in 2020/21 MG, 0.5 million tonnes up from early lows of 134.98 million tons due to precipitation, which will be held throughout the country after planting.

 

After the price reduction of demand for Ukrainian oil up to 1100 $/MT FOB sellers were forced to lower prices to 1130-1150 $/t FOB.

 

As a consequence, the purchasing prices for sunflower yesterday, fell by another RS 200-300/ton to 19000-19100 UAH/t with delivery to the factory today and will continue to fall against the background of strengthening of the hryvnia against the dollar of 28.56 to 28.3 UAH/$.

 

Traders since the beginning of the week lowered in the port prices for soybeans with GMOs by 10-15 $/t to 475-485 $/t or 16200-16500 UAH/t, but the processors have lowered the price only to 16700-17600 UAH/t, hoping to buy more raw materials amid falling prices.

 

If world oilseed prices will continue to fall in Ukraine will accelerate the fall in procurement prices for soybeans and sunflower, as buyers reduce activity through the uncertainty surrounding the direction of prices.

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