Palm oil price collapse puts pressure on oilseed markets - 20.01.20
March palm oil futures in Malaysia last week showed the largest weekly drop in the last 10 years, losing 10.4% immediately after India refused to buy Malaysian palm oil.
During Thursday and Friday, quotes fell 3.8% to 2,837 ringgit / t, or $ 700.49 / t.
The fall was also caused by Malaysia's increase in the export tax on crude palm oil from 5% in January to 6% in February.
Futures for soybean oil in Chicago on Friday won back the previous drop and rose 0.85% to $ 734.5 / t, although in general for the week the March contracts showed the maximum weekly drop since April 2019 and decreased by 3.4%.
The decline in quotations for palm oil was the expected return of the market to the usual level of premiums for soybean oil at $ 35 / t and for sunflower oil at $ 80 / t in comparison with palm oil.
The fall in the markets of soybean and palm oil puts pressure on the purchase prices of Ukrainian sunflower oil, which during the week fell by $ 20 / t to $ 760-780 / t FOB.
Reducing palm oil exports from Malaysia will reduce the supply of vegetable oils to the Indian market, which could intensify the purchase of Ukrainian sunflower oil, which is currently offered at $ 845 / t for delivery in February-March, although buyers will wait for the maximum price drop and only after that resume the purchase