The fall in the price of oil pulls down quotes for vegetable oils

After a slight adjustment on Monday, oil prices continued to fall yesterday and lost another 4% on news about a new strain of coronavirus, which, according to vaccine manufacturers, bypasses existing vaccines, and therefore it will take several months to produce new ones. Friday’s drop in oil prices had almost no effect on palm oil prices, but yesterday the pressure increased, and palm oil fell by 4%, and soybean oil – by 5.4%.

January Brent crude futures on the ICE Futures Europe exchange yesterday fell 4.3% to 7 70.5/barrel, and WTI crude on the New York NYMEX exchange-4.2% to 6 67.1/barrel.

During November, Brent crude fell by 17%, and WTI crude – by 20%, which is the strongest drop in the last 1.5 years, after prices fell by 50% in March 2020.

Following oil prices, February palm oil futures on the Malaysian stock exchange fell 4.2% yesterday to 4,672 ringgits/ton or 1 1,107/ton.

December soybean oil futures on the Chicago Stock Exchange also fell 5.4% to.1,217/ton yesterday, losing 11% in a month.

In Ukraine, export demand prices for sunflower oil from Monday decreased by 4 40-50/ton to F 1340-1350/ton FOB, while supply prices fell to F 1400/ton FOB amid uncertainty with demand due to new quarantine restrictions.

Producers are in no hurry to sell sunflower seeds, but a sharp drop in oil prices will force them to step up sales as long as prices remain at a high level. Purchase prices for sunflower seeds with delivery to the plant decreased from the beginning of the week by 500-800 UAH/ton to 20000-20500 UAH/ton, although last week they reached 21000-21500 UAH/ton (for oil 50%).

GrainTrade

Tags: Ukraine, sunflower oil, soybean oil, Malaysia, palm oil