The rise in oil prices led to an increase in quotations for vegetable oils

Oil prices started the week with strong growth amid Saudi Arabia’s decision to raise prices for all grades of oil supplied to Asia and the United States from January. In addition, concerns about the danger of the Omicron coronavirus strain are reduced.

January Brent crude futures on the ICE Futures Europe exchange rose 5.1% to 7 73.5/barrel yesterday, and WTI crude on the New York NYMEX exchange-5.33% to 6 69.8/barrel, recovering from a 20% drop in November.

Following them, February palm oil futures on the Malaysian stock exchange rose 2.1% to 4,750 ringgit/ton or 1 1,123/ton, although since November 30 they have been at the level of 4,650-4,670 ringgit/ton.

The main pressure on palm oil prices was exerted by low oil prices, although they were supported by forecasts of a further reduction in palm oil reserves. According to an average estimate of a Reuters poll of analysts, palm oil reserves in Malaysia at the end of November decreased by 3.5% compared to October to a four-month low of 1.77 million tons against the background of an increase in exports by 11.9% to 1.59 million tons and production by only 1% to 1.74 million tons. the official report, released on December 10, will further increase pressure on prices.

December soybean oil futures on the Chicago Stock Exchange rose 1.2% to.1,272/ton yesterday, adding 5% of the price since the beginning of December.

Active soybean exports from the United States have been supporting soybean and soybean oil prices in recent weeks. During November 26-December 2, the United States exported 2.247 million tons of soybeans, which is almost the same as in the previous week. Due to low purchasing activity from China, total soybean exports since the beginning of the season (September 1) amounted to 23.57 million tons, which is 21% lower than last year’s pace.

According to the Brazilian Ministry of trade, 2.23 million tons of soybeans were sent to China in November, which is twice the corresponding figure last year, although in general, in 2021, deliveries to China decreased by 4% to 58.4 million tons.

Supply prices of Black Sea sunflower oil after falling to F 1,350/ton FOB recovered to the level of 1 1,365-т 1,380/ton FOB, as processors are experiencing a shortage of offers from producers who postpone sales to next year.

GrainTrade 

Tags: prices, soybean, oilseeds, Malaysia, palm oil