The sharp decline in palm oil prices is adding to the pressure on soybean and sunflower oil prices.
The explosive growth in palm oil prices in Malaysia in October, as predicted, led to a decrease in export supplies, an increase in stocks, and a pullback in prices, which in turn pressed down prices for soybean and sunflower oil.
Last week, palm oil futures on the Malaysian exchange reached a new record of 5,071 ringgit / t ($ 1,222 / t), but on Friday fell 3.9% to 4,880 ringgit / t ($ 1,175 / t) against the background. negative data on exports and stocks for October.
According to Reuters experts, palm oil exports from Malaysia in October decreased by 11% compared to September to 1.41 million tons, production fell by only 0.98% to 1.69 million tons, which led to an increase in stocks by 3.4% to 1.81 million tons, due to the increased prices for the product.
Malaysia In 2020/21 MY, the export of palm oil decreased to 15.86 million tons compared to 17.22 million tons in the previous season, incl. refined oil was reduced to 11 (13.5) million tons, and crude oil - increased to 4.8 (3.7) million tons.
December soybean oil futures on the Chicago Stock Exchange last week were actively declining amid an increase in forecasts for soybean production in the US, a decrease in imports to China, as well as under pressure from palm oil prices and lost 7.3% to $ 1,276 / t over the week.
According to Chinese customs statistics, imports of soybeans in October decreased to 5.11 million tons, which is 41.2% less than a year ago, and in general, in 10 months of 2021, 79.08 million tons of soybeans were imported, which is 5% less than in the same period last year.
Prices for Ukrainian sunflower oil last week decreased from $ 1390-1420 / t FOB to $ 1360-1380 / t FOB under pressure from increased supply and decreased demand.
The prices were supported by the purchase by the Egyptian state agency GASC last week of 15 thousand tons of sunflower oil for delivery from December 25, 2021 to January 15, 2022 at a price of $ 1,440 / t C&F.
In Ukraine, as of November 5, the sunflower was harvested on 95% of the area or 6.2 million hectares and threshed 14.7 million tons with a yield of 2.38 tons/ha. As of November 8, in Russia, the sunflower was harvested on 96% of the area or 9.3 million hectares and 14.9 million tons were harvested with a yield of 1.6 tons/ha. Sunflower production will reach projected volumes and markets continue to calm down especially in anticipation of the update of the world balance sheet data from the USDA.