Recovery of the oil market continues to support prices for vegetable oils
on Monday, prices of oil grew for a third straight session on data on the reduction of working oil and gas drilling rigs in the U.S. last week another 35 to 339, the lowest since the 1940s, although a year ago, the country had 987 units.
in Particular, the number of oil rigs decreased by 34 to the lowest since July 2009. level – 258, whereas in may 2019 they worked 802.
Piper Sandler Experts believe that the number of drilling rigs in the USA with 943 in 2019, could be reduced to 528 in 2020 and up to 215 in 2021г.
Additionally, the oil market and stock indices in the USA was supported by the news about successful trials of a vaccine against Covid-19.
Friday the price of Brent crude on London's ICE Futures increased by 10.7% or 3,39 $/barrel to 34.96 $/barrel, while June futures for WTI in new York – 6% or 1.85 $/barrel to of 32.55 $/barrel.
Following the oil price quotes, palm and soybean oil updated its monthly maximum.
the Fourth day in a row, the more expensive palm oil exchange in Malaysia and yesterday prices rose by 2.5% to highest since April 21, level 2142 Ringgits/t or 491,17 $/t. They upheld the decision of the government of Indonesia on the allocation of 187 million $ to support programs B30 and increase export duties on palm oil by 5 $/t, some of which (in the amount of 51 million us $) will go to support the producers of biodiesel.
the U.S. soybean oil rose 2.6% to 602,96 $/t, while the Argentine soya oil in the physical market rose to 600-605 $/t FOB Up River.
Prices of vegetable oils supports the containment of sales manufacturers and low processing margins, but the market is almost saturated, so the intention of India to raise import duties on vegetable oil can dramatically change the situation.
Data acquired by the Indian party buyers of Ukrainian sunflower oil with delivery in June at a price 797,5 $/t CIF, which is $100/t premium in respect of Argentine soy oil, warmed up the market.
the bid Prices for Ukrainian sunflower oil grew by 10 $/t to 730-735 $/MT FOB, while demand for shipments in August are 710-715 $/t FOB, and in November – 690 $/t FOB.
the Sunflower planted 5.6 million ha or 91% of the planned area, compared to 4.4 million hectares or 76% last year. Recent precipitation contribute to the production of stairs and increase the potential for future harvest.