Tender in Egypt has accelerated the growth of prices for vegetable oils
After Friday's collapse in the price of vegetable oil since Monday began to gradually recover, thanks to increased demand ahead of Ramadan and after the rapid rise in price of palm oil, caused by hopes for improved relations between India and Malaysia.
Yesterday, the Egyptian GASC bought at the tender 60 thousand tons of soy and 16 thousand tons of sunflower oil with delivery of 1-20 may, which supported the vegetable oil markets. In comparison with the previous tender, 20 February the purchase price of soybean oil fell by 6% to 720 $/t, whereas the price of sunflower decreased by only 2% to 734 $/t
the Results significantly supported the price of Ukrainian sunflower oil, which on Monday rose $20/MT to 695-705 $/t FOB for shipments in April-may.
In Europe sunflower oil with delivery in the 4th quarter also rose by 20 $/t to 745 $/t
amid the recovery in demand may futures on palm oil in Malaysia increased by 5% to a weekly high of 2495 Ringgits/t or 597,25 $/t the Falling prices for palm oil stepped up purchases, that held for closing of short positions on the supply of these products for 1-2 months before the start of Ramadanin, which will begin to celebrate 23 APR.
May futures for soybean oil in Chicago grew by 1.9% to 660,7 $/t, soy and quotes by 0.6 percent to 334,5 $/t after Argentina announced the increase in export duties on soybeans and soybean oil from 30% to 33%. the restoration of the registration of export contracts will increase the supply of soybean meal and oil on the world market.
Brazil this week imposed a mandate B12, which the content of biodiesel in the fuel increases to 12%. This will increase domestic consumption of palm oil and reduce its exports. In comparison with last year, the country in the new season will reduce soybean oil exports by 30% - from 1100 to 700 thousand tons.
Brazil is the largest world producer of soybeans, the beginning of the harvest of the beans, which is estimated at a record of 125-126 million tonnes From 44 million tonnes will be recycled in the domestic market and the rest exported.
