The increase in soybean prices supported the markets of oilseeds
a Prolonged drop in the price of palm oil launched last week down the markets of oilseeds due to the possible decline in global demand, but the data on the stocks of soybeans and a reduction in sowing areas in the United States supported the quotes.
According to the USDA as of June 1 stocks of soybeans in the U.S. has decreased compared to the previous year by 22% to 37.8 million tonnes, while the acreage of soybeans increased from 76.1% to 83,8 million acres, though analysts expected them to increase to 84.7-85 million acres due to reduction of the area under maize.
After the publication of the report of the November futures for soybeans rose by 4.5% to 330,5 $/ton, and soybean oil – by 2.3% to to 642.2 $/t. the Further increase of quotations has limited data on the reduction of soybean in the USA with 5 million tonnes in April to 4.88 million tonnes in may.
Futures on palm oil in Malaysia last week fell by 7.4% due to lower demand, but yesterday they broke a 5-day decline and rose by 1.3% to 2327 Ringgits/t or 543,18 $/ton amid higher oil prices and soybean oil. According to preliminary data, in June palm oil exports will increase compared to may at 21-29%, whereas traders were expecting 35% growth.
the Rapid spread of Covid-19 to the US and return to Asia could affect demand for vegetable oil that keeps the markets uncertain.
Prices for Ukrainian sunflower oil with delivery in July-September remained at a high level 770-780 $/t FOB, but the demand is negligible, for deliveries in November-December the price is 700-710 $/t FOB.
Prices for rapeseed oil in Europe against the background of shortage of supply rose to 760-770 €/t FOB, although futures on rapeseed decreased by 0.75 377,25 FOB to FOB, although because of the uncertainty of crop yields in Ukraine and the EU prices may increase.
In Ukraine the prices for rapeseed in the port increased 412-415 $/t or 13000-13100 UAH/t on data on the low yield and oil content of rapeseed from the new harvest in the southern regions affected by the drought.