Rising palm oil prices support sunflower and sunflower oil markets

2021-09-27 12:06:14
Machine translation
Rising palm oil prices support sunflower and sunflower oil markets

Forecasts of an increase in global oilseed production in 2021/22 MG have not yet significantly affected prices, since the reduction in rapeseed production has already led to its rise in price, which supported prices for other crops.

 

It is expected that in 2021/22 MG, the sowing areas of the 10 main oilseeds in the world will grow by 7.5 million hectares to 306 million hectares compared to the previous season, as a result of which their production will increase by 24.1 million tons. however, oilseeds will continue to decline, and only soybean reserves will grow.

 

Against the background of a reduction in the supply of rapeseed oil, the demand for sunflower, soybean and palm oil will increase.

 

October palm oil futures on the Malaysian stock exchange rose 6.4% last week to 4,441 ringgit/ton or 1 1,061.55/ton on forecasts of reduced production and increased exports.

 

The palm oil market remains highly volatile, as the shortage of sunflower oil supplies caused by the delay in sunflower harvesting in the Black Sea region forces buyers to buy cheap palm oil.

 

In Ukraine, prices for sunflower oil remain at the level of F 1260-1300/ton FOB. There is no seasonal decline in prices, as producers restrain sales of sunflower seeds in anticipation of higher prices, as it was last year.

 

Active harvesting of soybeans and good yields in the United States restrain price growth, but against the background of the shutdown of factories in China, December soybean oil futures in Chicago for the week rose by 4.7% to.1,273/ton, recouping the fall of the previous week.

 

In China, more than 20 soybean processing plants have shut down due to tougher government emission requirements. This will reduce the demand for soybeans, but increase it for soybean oil. Therefore, soybean oil futures on the Dalian Stock Exchange rose 2% to 1 1,493/ton.

 

Egypt's GASC last week held an international tender for the purchase of 30 thousand tons of soybean and 10 thousand tons of sunflower oil. However, I purchased only 12 thousand tons of sunflower oil on it with delivery from November 15 to December 15 and payment immediately after delivery at the price of C 1289/ton CIF. At the same time, the supply prices of sunflower oil were 1 1314-1328/ton, and soybean oil – C 1340-1378/ton CIF.

 

The results of the tender indicate the willingness of buyers to expect lower prices against the background of increased production forecasts.

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