The high price of vegetable oil reduces the activity of buyers
the Gradual growth of prices for vegetable oil have led to decline in demand from buyers, and a possible second wave Covid-19 in China and political tensions escalate between China and India in General can deploy the price down.
Egyptian GASC June 16 cancelled the tender for the purchase of 40 thousand tons of vegetable oils for too high prices.
bid Prices of Ukrainian sunflower oil with delivery in July-August remain at a high level 770-780 $/t FOB for a limited amount of offers, but the activity of buyers is not observed, and the demand for oil from the old crop from India is almost absent.
the price of sunflower oil from the seeds of the new crop with delivery in October-November also reach 710-720 $/t FOB, even though the increase in sowing areas of sunflower in Ukraine and Russia and the improvement of the condition of crops after the rain. There is strong demand for it and sales.
High palm oil prices supported the markets, soybean and sunflower oil. Since the beginning of the week futures on palm oil exchange in Malaysia was restored to Friday's level of 2361 Ringgits/t or 551,66 $/ton amid increased demand from China, which during 1-15 June imported 233,3 tonnes of Malaysian palm oil.
the decision of the authorities of Indonesia concerning the transfer from 2023 to 2026 timeframe of the opening production of second generation biofuels will increase pressure on the price of palm oil in the near future. This stems from the pandemic Covid-19 financial crisis, which does not allow to fully invest in this project. Recall that the processing of palm oil in "green diesel fuel" is part of the plan of the authorities to increase the use of this oil domestically due to the reduction of its exports against the background of oversupply in the global market, and to reduce imports of traditional fuels.
Futures for soybean oil in the U.S. traded at 636 $/t on the rumors about a possible resumption of purchases by China and data on ways to increase recycling. According to NOPA, in may the us company processed a record 6.2 million tons of soybeans, 80 thousand MT lower than in April 2020, but by 550 thousand tons exceeds the level may 2019
the price of rapeseed oil in the Netherlands is growing with the support of the market of soybean oil and a weak Euro. August futures rose by 2 €/t to 753 €/t FOB DM.
