Vegetable oil prices are supported by increasing demand from India

The EU’s decision to impose sanctions on Russia and cut its oil imports by 90% by the end of the year had led to higher oil prices, but an agreement with Venezuela and Saudi Arabia to supply oil to Europe halted rising prices. July futures for Brent oil remain at a high level of $ 120 / barrel, and for WTI oil – at $ 119.3 / barrel.

Rising oil prices have halted falling oil prices, which returned to previous highs last week.

The Egyptian GASC is holding an international tender for the purchase of 30,000 tons of soybeans and 10,000 tons of sunflower oil, as well as a domestic tender for the supply of 3,000 tons of soybeans and 1,000 tons of sunflower oil, the results of which will be announced on June 8.

Against the background of the decision on duty-free import of 2 million tons of vegetable oils in May compared to April, imports of sunflower oil from 67.8 to 123.9 thousand tons, primarily due to supplies from Russia, soybeans – from 315.8 to 352.6 thousand tons, and palm – by 15% to a seven-month high of 660 thousand tons, because instead of Indonesian oil had to buy raw materials from Malaysia, Thailand and Papua New Guinea.

The intensification of demand from India has supported the prices of vegetable oils. July palm oil futures in Malaysia last week rose 1.6% to 6,453 ringgit / t or $ 1,470 / t. According to the surveying company Societe Generale de Surveillance, Malaysia increased its palm oil exports by 20.5% to 1.33 million tons in May compared to April.

July soybean oil futures in Chicago fell 0.7% to $ 1,788 a tonne yesterday, but rose 4.1% last week amid strong demand.

According to the ICAR agency, export prices for Russian sunflower oil remain at $ 1800-1850 / t FOB and are unlikely to decline in the near future due to high export duties.

In Ukraine, sunflower oil producers suffer from a lack of exports from ports, so they are forced to supply products by truck to European buyers, who under the pressure of supply have reduced prices to 1450-1650 $ / t DAP.

Ukrainian exporters are looking for new export opportunities to get better prices. Thus, a train to Lithuania has already been organized with 44 specially adapted containers that will transport Ukrainian sunflower oil to the port of Klaipeda for further delivery by sea to the main buyers.

Tags: Thailand, Malaysia, palm oil, Ukraine, sunflower oil, Egypt, EU, prices, India