The recovery in oil demand has not yet affected the vegetable oil markets

2021-06-22 12:04:55
Machine translation
The recovery in oil demand has not yet affected the vegetable oil markets

Oil prices, which have been rising for five consecutive sessions, have already approached the highest level since 2018 on hopes of a rapid recovery in oil demand in the summer due to active vaccination of the population against coronavirus and the development of global economies.


In Iran, the president of the country's Supreme Court, Ibrahim Raisi, won the presidential election, who previously harshly criticized the agreement on the nuclear program, but after the election announced that if all sanctions from the United States are lifted, he is ready to return to negotiations. The delay in resuming oil supplies from Iran supports global quotes.


August Brent crude futures on the London ICE Futures Exchange have risen 2.1% to 7 75.1/barrel since Friday, while July WTI crude futures on electronic trading in the New York NYMEX-by 3% to.73.7/barrel.


But despite the rise in oil prices yesterday on the Malaysian stock exchange, September palm oil futures fell 1% to 3,391 ringgit/ton or 8 817.7/ton on data on faster production growth than exports in June.


According to the sspoma Association, in the 20 days of June, palm oil production in the country increased by 13.4% compared to the same period in May, while the volume of exports – only by 0.8-1.8% (according to local surveyors). Indonesia's decision to reduce the export duty on palm oil from 2 265 to.175/ton if the export price exceeds. 1,000/ton will increase competition with Malaysian oil.


On the Chicago SWOT, July soybean oil futures rose 6.7% to.1,327/ton after a sharp recent collapse over the past two days, and December – 9.5% to. 1,268/ton, which is still 7.8% lower than last week's price.


Low prices for palm oil reduce the demand for Ukrainian sunflower oil, the prices of which for the old crop have already fallen to the level of prices for the new crop and amount to 1 1100-1150/ton FOB.


Egyptian operator GASC has announced local and international tenders for the purchase of vegetable oils for delivery in September. It is possible that against the background of high prices for soybean oil, the volume of purchases of sunflower oil will increase, which will restore demand for sunflower in Ukraine.

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