In the new season production of vegetable oils will exceed consumption
In a new report, the experts of Oil World downgraded its forecast for annual growth of world production of vegetable oils in 2018/19 MG 3% (vs 4% in the 2017/18 season).
the volume of production will reach a record 194,7 mln tonnes, which exceeds the volume of consumption, which in comparison with the previous season, will increase by 6.1% to 193.5 million tonnes.
as a Result, ending stocks of vegetable oils in 2018/19 MG will increase in comparison to 2017/18 MG to 6.6%, from 26 to 27.7 million tonnes, which will become the second largest figure after a record 28.9 million tons in 2014/15.
Increase production of oil will increase soy crop in the new season to 362,7 million tons, 4 million tons higher than the previous forecast and 24 million tons more than last season (338,8 million tons).
during the year, the price of soybean oil fell by 24% and went down to Chicago to 635 $/MT, with increased forecasts of soybean production in the United States and Brazil.
the price of palm oil has also declined due to increased production and reduced demand as importers prefer cheaper soy and sunflower oil. For the week on the stock exchange in Kuala Lumpur, palm oil prices fell by 2.2% to 536 $/t
Favorable weather in Ukraine will allow to increase sunflower production in the new season to 14-15 million tonnes, which will allow you to load processing capacity and increase production of sunflower oil by 10%. After increasing the volume of the bids of domestic demand for sunflower oil fell to 690-700 $/t FOB.