World News:
The rise in quotations for vegetable oils supports the demand and prices for Ukrainian sunflower oil, especially considering the reduction in its supply towards the end of the season.
Over the week, demand prices for Ukrainian sunflower oil have increased by $30–40/ton to $880–900/ton FCA (Free Carrier) – plant, and prices with delivery to buyers have reached $950/ton, despite difficulties with shipments from Black Sea and Danube ports due to Russian attacks.
As sunflower stocks diminish, processing plants are shifting to rapeseed, leading to a shortage of sunflower oil supply.
The vegetable oil markets are being driven by a 12% increase in oil prices over the month, reaching a 3-month high.
September futures for palm oil on the Bursa Malaysia exchange rose to a 4.5-month high of 4164 ringgits/ton on Monday but fell 2.26% to 4070 ringgits/ton or $891/ton yesterday as traders began taking profits.
Quotations were supported by an increase in exports, which rose by 10.8% compared to the same period in June, according to estimates by the surveyor AmSpec Agri Malaysia, and by 17.8% according to the surveyor Intertek Testing Services.
Traders expect India to increase its import of edible oils by 60% to a record 1.86 million tons in July as processing plants build stocks ahead of festivals amid uncertainty in supplies from the Black Sea region.
On the Chicago exchange, September futures for soybean oil rose by 10.5% to $1508/ton over the week due to reduced soybean stocks, and December futures rose by 6.4% to $1415/ton on forecasts of a smaller soybean crop in the US due to drought.
An increase in new-crop rapeseed oil supplies in the EU will reduce demand for vegetable oils, especially sunflower oil, at the end of August.
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