The spread of Omicron reduces the price of edible oils

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The increase in cases of coronavirus infection is growing again, and in the United States and Europe it is already reaching record levels, which leads to increased quarantine restrictions and, as a result, falling prices for oil and commodities.

According to preliminary research data, the new strain of Omicron is a mild form of the virus, but it spreads faster and overcomes the protection of vaccines.

February Brent crude futures on the ICE Futures Europe exchange fell 3.2% to 7 73/barrel since the beginning of the week, and WTI crude oil on the New York NYMEX-by 2.5% to 6 69.8/barrel.

Following them and on forecasts of a decline in exports in December, February palm oil futures on the Malaysian stock exchange fell 2% yesterday to 4,699 ringgit/ton or 1 1,110/ton.

January soybean oil futures on the Chicago Stock Exchange fell 2% to понеділка 1,145/ton from Monday, losing 11.5% of the price for the month. The market expects today’s report on soybean processing in the United States in November, the volume of which traders estimate in the range of 4,844-5,03 million tons.

According to experts of the Solvent Extractors’ Association of India (SEA), India in November increased imports of vegetable oils compared to October by 6% from 1.06 to 1.173 million tons, primarily soybeans – from 217 to 474.1 thousand tons. for comparison, in November 2020, imports of vegetable oils amounted to 1.102 million tons, including soybeans – 250 thousand tons.

In my 2021/22, India will increase rapeseed production by 30% compared to the previous season from 8.5 to 10-11 million tons, which will lead to a decrease in imports of expensive vegetable oils, in particular sunflower. While in my 2020/21, the country increased spending on the import of vegetable oils by 63%.

The decline in world prices for soybean oil against the background of increased crop forecasts in South America increases its competitiveness in the world market compared to palm and expensive sunflower oil.

Under the pressure of falling prices for soybean and palm oil, the supply prices of Black Sea sunflower oil decreased to 1 1330-1360/ton FOB.

GrainTrade 

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