Speculative growth in vegetable oil prices continues on forecasts of declining stocks
Prices for palm oil continue to rise on forecasts of reduced stocks in Malaysia and increased consumption and imports by India, which supports quotes for soybean and sunflower oil.
Traders are speculative purchases in anticipation of Friday’s USDA report, the data of the Malaysian Palm Oil Board, which will be released on November 11, as well as forecasts of demand and stocks from the industry conference in Indonesia, which will be held this week.
Oil prices fell by 2% yesterday amid Trump’s victory, the rise of the dollar and crude oil inventories in the US, which will limit the increase in prices for vegetable oils.
India in October increased imports of palm oil by 59% to 3-month high of 840 thousand tons Processors have stepped up purchases to replenish stocks depleted by low imports and high demand during the holidays, which were celebrated in recent weeks.
December futures for palm oil on the Bursa exchange in Malaysia yesterday rose another 2.3% to 4917 ringgit/t or 1117 $/t (+4.7% for the week, +9.6% for two weeks).
the December futures for soybean oil on the Chicago stock exchange for the week rose by 5.9% to 1022 $/t (+4.3% per month) amid increased demand for the cheapest oil on the market.
The average price of sunflower oil for delivery to buyers during the week increased by 2.9% to 1326 $/t (+10.7% per month), – reports Trading Economics.
According to the European Commission, as of October 29, prices for soybean oil in Argentina amounted to 1101 $/t, palm oil in Indonesia – 1170 $/t, sunflower oil in Ukraine – 1065 $/t, rapeseed oil in Rotterdam – 1189 $/t.
the price of vegetable oils have recently increased amid the rapid rise in price of palm oil, but after coming to power in the United States Republicans who plan to reduce support for green energy programs, the demand for soybean and rapeseed oil in the United States and the EU may decline.
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