The decrease in quotations of palm and soybean oil pressure on prices of sunflower oil and seeds

Monday markets of vegetable oils reduced under the pressure of falling oil prices, an increase in supply of palm and soybean oil and low demand, particularly from China, which is the main importer of vegetable oils.

the May futures of palm oil on the stock exchange in Malaysia on Friday fell by 1.1%, and yesterday 1.6% to 3684 ringgit/t or 908,5 $/t on the background of a slower-than-expected export and restore production.

According to local surveyors, in February, Indonesia exported 1 million tons of palm oil, which is 4-5% lower than in January. At the same time, oil production, according to the Association SPPOMA, rose in February compared to January of 9.3%.

This confirms the predictions of experts regarding the rapid increase in production in the context of high prices and a gradual decline in exports, especially in the second quarter during seasonal growth.

oil Prices fell yesterday at 3.5-4%, putting pressure on quotes palm and soybean oil.

All Chicago CBOT may futures for soybean oil fell yesterday 2% to 1074,5 $/t after the decline in soybean prices by 1.7% to 509,4 $/t

the Rate of harvest of soybeans in Brazil inferior average. According to the Agency Agrural threshed only 25% of crops, but due to precipitation forecasts of crop standing at 133 million tonnes.

the Lack of rainfall in Argentina in the coming weeks will increase the stress for crops, but their condition is normal, so the crop forecasts remain unchanged.

the Demand for U.S. soy is low, given the absence of China in the market. Export sales of U.S. soybeans for the week decreased by 63% to 168 million tonnes, and exports grew by 76 thousand tons thousand tons to 879,6

China does not want to buy expensive American soybeans and prefer Brazilian.

an Increase in supply of Argentine meal on the background of falling corn prices puts pressure on export prices of Ukrainian meal, which continues to fall, what affects the prices of sunflower.

in limited supply, prices for Ukrainian sunflower oil remains high 1500 $/t FOB, but the bid has stopped growing and may even decline following the markets of palm and soybean oil. As a result, refiners will be forced to adjust prices on the sunflowers, which are at the level 22500-23000 UAH/t (VAT=14%) delivered to the factory.