The rise in oil prices and the results of the tender in Egypt led to another jump in prices for vegetable oils

This week, oil prices rose to a 7-year high, which was an additional factor in supporting the prices of vegetable oils, which rose sharply again yesterday.

December palm oil futures on the Malaysian stock exchange rose 2.5% yesterday to a record 5,071 ringgit/ton or 1 1,220/ton, adding 4.4% over the week on forecasts of increased demand from the biodiesel industry.

Following them, December soybean oil futures on the Chicago Stock Exchange also rose 3.8% to.1,426/ton yesterday, adding 16.7% in price for the month as a whole. They were supported by the results of the tender in Egypt.

Egyptian GASC yesterday held a tender for the purchase of imported soybean and sunflower oil. However, due to too high offer prices, which amounted to 1468-1500 $/T CFR for soybean and 1475 $/T CFR for sunflower, GASC purchased only 25 thousand tons of soybean oil with delivery on December 5-25 at an average price of 1468 $/T CFR, which is 78 $/T higher than the purchase price of the tender on October 5 and 158 $/t-the price of the September tender, when 10 thousand tons of soybean oil were purchased at a price of 1310 $/T CFR. Recall that at the tender on October 5, sunflower oil was offered at 1 1,391/ton CFR.

Another refusal of GASC to purchase sunflower oil will increase pressure on its prices, but now the offer prices of Black Sea sunflower oil continue to grow and have already reached F 1400-1450/ton FOB.

Active competition with soybean oil, the volume of offers on the world market continues to grow, and high prices for palm oil increase the demand for sunflower oil. Thanks to this, Ukrainian farmers will be able to get high profits from growing sunflower seeds for the second year in a row.

GrainTrade

Tags: sunflower oil, vegetable oils, soybean oil, price, palm oil, futures