Rising soybean oil prices halted the decline in palm and sunflower oil prices.
Ukr Agro Consult
A meeting between the leaders of China and the United States and agreements to improve trade relations between the countries led to a sharp rise in soybean prices in Chicago by 10% in a month, which supported soybean oil prices.
December soybean oil futures on the Chicago Board of Trade rose 3% over the week to $1,125 per ton, but overall for the month they have only risen 1%, as US oil export prices face strong competition on the global market, limiting their further growth.
Rising soybean oil prices supported palm oil prices, which had fallen 10% in the past month. However, yesterday, December palm oil futures on Bursa Malaysia rose 0.7% to 4,138 ringgit/tonne (US$979/tonne), despite data showing Malaysian palm oil inventories had increased to a 6.5-year high and exports were slowing.
Falling palm oil prices continue to dampen Indian demand for all vegetable oils, including expensive sunflower oil. According to brokers, India has not purchased sunflower oil for the second week in a row, as the spread between sunflower oil and soybean oil on a CIF India basis was around $180 per tonne, while with palm oil, it was approximately $200 per tonne. In the Spanish and Dutch markets, the spread exceeded $120 per tonne.
Sunflower oil prices for delivery to India have fallen by $10/t to $1,320/t CIF Mumbai in a week, but supply continues to grow, so a further price drop is expected.
Ukrainian sunflower oil demand prices also fell by $10-20/t over the week to $1,220-1,230/t for delivery to ports in November-December, but further declines are limited, as Russian sunflower oil prices remain at $1,190-1,210/t.
Favorable weather for soybean and sunflower planting in South America continues to put pressure on soybean prices and, consequently, other oilseeds. In Argentina, increased sunflower production is forecast, leading to increased supply of Argentine sunflower oil at a low price of $1,170/t FOB, increasing competition with Black Sea oil.
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Source : Ukr Agro Consult
