China's economic slowdown is putting pressure on oil and rapeseed prices

Pressured by disappointing macroeconomic indicators from China, oil prices fell 4% on Monday, followed by a 6% decline in rapeseed prices.

October Brent oil futures fell by $45 to $100/barrel yesterday on expectations of lower demand for raw materials due to a slowdown in China's economy amid a possible increase in production by OPEC+ countries, which will be decided at a meeting on Wednesday.

According to the publication Caixin, in July the index of business activity (PMI) in the manufacturing sector of China decreased compared to June from 51.7 to 50.4 points, which forces to revise the forecast of oil imports to the world's largest consumer.

Against the backdrop of lower demand from China and following oil prices, quotations for vegetable oils and oilseeds also turned downwards. Traders booked profits after last week's sharp rise in prices by 6-9%.

September palm oil futures on the Malaysian exchange yesterday fell 5.6% to 4,060 ringgit/t, or $912/t, almost giving up Friday's gains.

September soybean oil futures on the Chicago Mercantile Exchange fell 3.9% to $1,410/t, although they rose 9.7% overall for the week amid a worsening state of the US soybean crop.

August rapeseed futures on the Paris MATIF fell 5.9% or €38.5/t to €651.25/t or $669/t yesterday, but were up 3.1% for the week overall.

Electronically traded November canola futures fell 5.1% yesterday to CAD 849/t, or $660/t, but were up 6.8% for the week overall.

In Ukraine, rapeseed purchase prices remain at UAH 12,500-13,500/t at elevators, $400-450/t with delivery to Danube ports, and $550-600/t at DAP Poland and Romania. The resumption of operations of the Black Sea ports will revive the market and activate the purchases of traders at internal elevators, and later, perhaps, at the ports.