Quotations for soybean and palm oil have fallen by 3% and 3.8% since the beginning of the week
Soybean and palm oil prices continue to fall on world exchanges this week due to declining demand from buyers and fixing profits by traders. Indonesia maintains a ban on palm oil exports, although traders hoped it would be lifted quickly. In anticipation of the resumption of exports, traders are selling at high prices, which has led to lower quotations.
After Indonesia’s export ban, July palm oil futures in Malaysia rose 16% to a record 7104 ringgit / ton, but fell 3.8% on Friday to 6,134 ringgit / ton or $ 1,395 / ton.
In addition, the market is under pressure from lower-than-expected palm oil exports from Malaysia. According to the surveying company Societe Generale de Surveillance, from 1 to 15 May, exports increased compared to the same period in April by 23.9% to 613.6 thousand tons.
High prices and forecasts of the lifting of the ban on exports from Indonesia restrain demand. There are small price fluctuations in the market, and traders expect updated data on production in May, which may decline or remain at an average level.
July futures for soybean oil in Chicago after reaching $ 1905 / ton against the background of Indonesia’s export ban has already fallen by 7.3%, including yesterday – by 3% to $ 1775 / t.
Commodity futures are also under pressure from a 3-4% fall in US stock indexes amid tightening Fed monetary policy and corporate reports, which showed a decline in US corporate profits in the first quarter.
The supply prices of Russian sunflower oil remain at the level of 1860-1900 $ / t FOB – Black Sea ports due to rising domestic prices and export duties. This supports the prices for Ukrainian sunflower oil, which with delivery to DAP Romania, Bulgaria, Germany offer at 1700-1800 $ / t.
The high level of prices for Ukrainian sunflower oil is due to the rise in prices for road transport and the convention for rail transport to the western border stations. In addition, many plants in Ukraine do not operate, while sunflowers are actively exported, which reduces the supply of sunflower oil.
Watch the webinar recording ‘War in Ukraine. Grain & Oilseed Crop Forecast-2022’
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