The rise in vegetable oil quotations is supporting demand and prices for Ukrainian sunflower oil, especially as supplies are reduced at the end of the season.
According to Graintrade, during the week, demand prices for Ukrainian sunflower oil rose by $30-40/t to $880-900/t FCA – factory, and prices with delivery to buyers – up to $950/t, despite difficulties with shipments from Black Sea and Danube ports due to Russian attacks.
Sunflower stocks are dwindling and factories are switching to rapeseed processing, resulting in a shortage of sunflower oil supplies.
Vegetable oil markets are being supported by a 12% monthly rise in oil prices to a 3-month high.
September palm oil futures on Bursa Malaysia rose to a 4.5-month high of 4,164 ringgit/tonne on Monday, but fell 2.26% to 4,070 ringgit/tonne or $891 per tonne yesterday as traders began to lock in profits.
Prices were supported by rising exports, which for the period 1-25 July rose 10.8% from the same period in June according to surveyor AmSpec Agri Malaysia and 17.8% according to surveyor Intertek Testing Services.
Traders expect India to increase edible oil imports by 60% to a record 1.86 million tonnes in July as refiners stockpile ahead of festivals amid uncertainty over supplies from the Black Sea region.
Source: Graintrade