The increased demand raises the price of vegetable oil

2019-08-15 12:30:27
The increased demand raises the price of vegetable oil

due to active demand from importers rise in price of palm oil up to a three-month high has been the driver of growth of prices for vegetable oils. Futures for palm oil on the stock exchange in Bursa has grown to 530 $/t

 

According to the Malaysian Council for palm oil (LRAS), ending stocks this product in Malaysia in July unexpectedly fell to an annual low of 2.39 million tonnes thanks to higher exports of palm oil in comparison with June by 7.4% to 1.49 million tonnes, despite increased production by 15.1% to 1.74 million tonnes, which is the highest figure of month in the current year and the highest growth in production since March 2018 during August 1-10 palm oil exports, according to inspectors, SGS, grew by 30% to 475,555 thousand tons.

 

Malaysia's export duty on crude palm oil from September 2018, remains at the level of 0%.

 

Despite the slight drop in soybean prices, futures for soybean oil remains high 651,6 $/t

 

the European Commission on 13 August increased from 8% to 18% duty on Indonesian biodiesel, to create equal conditions for European biofuel producers and exporters. These measures are temporary, and in December the European Commission approves, permanent rates of duties.

 

This decision has led to growth in the September futures on rapeseed oil used for biodiesel production, to 770 €/t and October – to 774 €/t

 

Prices for Ukrainian sunflower oil on the eve of entering the markets of the new crop fell to 720-740 $/t FOB for shipments in September and October, but maintains high demand from India.

 

India due to the active demand increased in July 2019 the import of vegetable oils in comparison with July 2018 to 1.41 million tons, including: soybean oil – to 319,606 thousand tons, sunflower – to 200,467 thousand tons and rapeseed – to 15 thousand tons despite the increase in import of oil reserves for the month decreased by 7.25 to the lowest since April 2017 level – 2 million tons.