Soybean and oil prices continue to rise despite improved weather in South America

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Prices for soybeans and soybean oil have risen significantly since Tuesday after falling last week, following oil prices and a rise in the price of palm oil. Increased precipitation in Argentina and Brazil will leave has affected speculators who are warming up prices on forecasts of a new wave of drought returning to South America in February, which will continue to worsen crop potential.

March soybean futures on the Chicago Stock Exchange after falling 3% last week yesterday rose 2.9% to 5 525/ton, adding 5.1% of the price from Tuesday.

Amid a sharp rise in Brent crude prices to 8 88/barrel, March palm oil futures on the Malaysian stock exchange this week rose 4.7% to a record 5,187 ringgit/ton or 1 1,239/ton, supported by rumors of export restrictions from Indonesia.

March soybean oil futures on the Chicago Stock Exchange have risen 7.7% to.1,388/ton since the beginning of the week, adding 16.7% of the price for the month. They were supported by data on an increase in soybean exports from the United States to China.

According to Chinese customs, in December, the country imported 6.09 million tons of soybeans from the United States, which is 4% higher than in November and 68% higher than in December 2020. in general, in 2021, soybean imports from the United States increased by 25% to 32.3 million tons (25.9 million tons in 2020), and from Brazil decreased by 9.5% to 58.15 million tons (64.3 million tons in 2020).

Prices for Ukrainian sunflower oil regained their fall last week and rose from Monday by 3 30-50/ton to F 1355-1390/ton FOB, supported by the growth of neighboring soybean and palm oil markets.

Adjustments in oil prices and improved weather in South America as early as next week may lead to lower prices in the soybean and oil markets. Therefore, domestic farmers should step up sales of sunflower, the reserves of which are still quite large, while soybeans can be kept until February – March, when the volume of harvest in South America becomes clear.

 

GrainTrade 

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