The rise in oil prices supported the prices of vegetable oils
Yesterday, oil quotes accelerated growth and December futures for Brent crude on the London ISE exchange rose 3.4% to their highest level since October 2018 – $ 81.98 / barrel, although before the end of trading they dropped to $ 81.6 / barrel.
The oil market is supported by high gas prices, which in Europe reached $ 1200 / thousand m³, and the decision of the OPEC + countries to leave unchanged the previously agreed plans, according to which oil production will increase by only 400 thousand barrels / day from November. On expectations of an increase in oil consumption as a result of high gas prices and a possibly cold winter, forecasts for oil prices rose to $ 90 / barrel, and in some experts to $ 100 / barrel. OPEC + countries could have increased production, but they chose to keep prices high to boost revenues.
The vegetable oil markets reacted to the rise in oil prices by rising prices.
December palm oil futures on the Malaysian exchange yesterday rose 1.7% to RM583 / t or $ 1,098 / t, recovering from Friday's fall and returning to a record high on forecasts of stronger demand from the biodiesel industry.
According to Reuters estimates, palm oil stocks in Malaysia could fall by 0.36% to 1.87 million tonnes on the back of higher growth in exports than in production.
December soybean oil futures on the Chicago Stock Exchange rose 2.5% yesterday during the session, but later fell to $ 1299 / t, gaining 1.4% per day amid data on active harvest of soybeans in the US, where 34 % of space compared to 26% on average over 5 years. In addition, Stone X experts raised their forecast for soybean yields from 50.8 to 51.3 bushels / acre, well above the September USDA estimate of 50.6 bushels / acre.
Prices for Black Sea sunflower oil remain at the level of 1300-1340 $ / t FOB depending on the delivery date.
This week, the Egyptian operator GASC will hold a tender for the purchase of imported 30 thousand tons of soybean oil and 10 thousand tons of sunflower oil, which will additionally affect prices.
Let us remind you that Ukraine will harvest at least 1 million tons of high oleic sunflower seeds.