The decrease in forecast production of palm oil supports prices on vegetable oil

Yesterday, the quotations of palm and soybean oil rose slightly, with the support of USDA data has been updated balances.

Futures on palm oil exchange in Malaysia rose 0.5% to 2709 Ringgits/t or 654,9 $/t

Futures soybean oil in Chicago rose 0.4% to 686,96 $/t

In comparison with estimates of the January forecast of world production of palm oil decreased by 1.2 million tonnes to 73,99 million tonnes, which is almost consistent with the previous year. In particular, for Indonesia it is reduced 0.5 million tons to 42.5 million tons, and Malaysia's by 0.7 million tons to 19.8 million tons, while in 2018/19 Mr these countries produced a 41.5 and 20.8 million tonnes, respectively.

Assessment of export decreased by 1.19 million tonnes to 52,481 million tonnes compared to 51,664 million tonnes in 2018/19 Mr primarily due to reduced exports by Indonesia, which this year introduced a national mandate on the content of B30 biodiesel 30% biofuel from palm oil.

the Forecast for world palm oil stocks at the end of the current season was reduced from 9.9 to 7.92 million tonnes, which will be the lowest since 2009/10 my level.

as a result of reduction of purchases of palm oil by China and India forecast imports of these products decreased by 0.56 million tonnes to 51,57 million tonnes, just 0.5 million tonnes higher than the figure recorded the previous season.

On the background of steady growth in population, the demand for palm oil remains high in comparison with other vegetable oils, but in the case of a rise in price of palm oil increases the demand for soy and sunflower oil, the production of which in the current season will increase.

the Forecast of world production of vegetable oils in comparison with estimates of January reduced by 1 million tonnes to 205,49 million tonnes, 2.3 million tonnes higher than the figure recorded the previous MG. However, as a result of increasing consumption, the global stocks of vegetable oils decreased by 1.81 million tons from 17.77 million tons, compared with 21,68 million tonnes last season.