Rising palm oil prices keep sunflower oil prices from falling seasonally

The 7.2% increase in palm oil prices during the week significantly supported sunflower oil prices, which began to fall under pressure from a seasonal increase in offers and a low purchase price at the last tender in Egypt.

October palm oil futures on the Malaysian stock exchange rose 2% yesterday to 4,478 ringgit/ton or.1,078/ton, adding 7.2% of the price for the week, on data on India's increased imports in August and rumors about a possible reduction in duties on food oil imports in India.

In August, India increased palm oil imports by 84% to 850 thousand tons after the government reduced import duties on raw palm oil by the end of September and lifted restrictions on imports of refined palm oil and olein by the end of the year to reduce domestic prices for food oils. At the same time, imports of more expensive soybean oil decreased from 380 to 175 thousand tons compared to July, and sunflower oil – to 65 thousand tons.

December soybean oil futures on the Chicago Stock Exchange, following soybean prices yesterday, fell another 0.5% to 1 1,262/ton, losing almost 5% in a month amid low demand.

On the Dalian stock exchange, palm oil futures rose 0.6% to 1 1,306/ton, while soybean futures fell 0.2% to.1,422/ton.

Demand prices for Ukrainian sunflower oil delivered in September – October increased to 1 1,250-т 1,260/ton FOB with the support of the palm oil market, while supply prices reached F 1,300/ton FOB. Delaying sunflower harvesting slows down the seasonal increase in seed supply.

The palm oil market will receive support from consistently high oil prices, which are influenced by several factors: an increase in imports by China, a reduction in supplies from Libya, the shutdown of processing and production enterprises in the US Strait of Mexico amid an increase in reserves on tankers.