The growth of prices for vegetable oil maintains quotes rape

Speculative growth of prices for vegetable oils support quotations rape, although the stability of the prices of soybeans confirms the overheating of the vegetable oil markets. Therefore, in the case of a good soybean harvest and the seasonal increase in palm oil production they can expect a sharp decline.

If two weeks ago the most expensive palm oil (and the forecasts to reduce production and boost exports), the last week dramatically increased the quotation of soybean oil in hopes of increasing its consumption in the United States from the producers of biodiesel, although the actual consumption in comparison with last year has decreased.

September futures on soybean oil in Chicago after Friday's growth of 3.5% yesterday, rose another 1.2% to the highest since February 24, level 693 $/t for the increase in consumption of oil biofuel industry.

But the EIA report, released tonight, showed that as of 24 July, the oil reserves in the USA 17%, gasoline is 7.9%, distillate (bioethanol) by 25.4% higher than the average 5-year rate, and oil production remains at the level of 11.1 million barrels/day, which is 15.3% less than decoratinga level. On the data report the price of oil down 0.7% today increase the pressure on the quotations of vegetable oils.

Futures on palm oil in Malaysia yesterday rose 2% to 2731 Ringgits/t or 646,4 $/t in the background of the increase in exports in July by 5.8-6.8 percent compared to June and following the rapid growth in soybean prices after the long weekend.

the price of rapeseed oil in the Netherlands for deliveries in November-December rose to 785-795 €/t FOB DM, followed by the November canola futures in Paris rose by 2.25 €/t up to 384 €/t or 451,8 $/t

High European price support purchase prices for rapeseed in Ukraine at the level 425-428 $/t or 14000-14100 UAH/t at the port or 13700-13900 UAH/t with delivery to the plant.

the Main factor of price growth is the reduction of the yield of rapeseed. In Ukraine as of July 30, with 75% of the area harvested only 1.8 million tonnes of canola, therefore, the total harvest will not exceed 2,4-2,5 million tons and exports will amount to 2-2. 1 million tonnes projected earlier to 3 million tons.

Last year, the EU increased its imports of rapeseed from Canada in comparison with the previous season by 4% to 1,993 million tons, so this year the supply of rapeseed from Ukraine to easily replace the canadian Canalou crop which will exceed last year's.