Market News :Palm Oil , Soybean Oil Sunflower Oil Current market Positions And Its Forecast By B- Trams is As undr :
January palm oil futures on the closely watched Bursa Malaysia Derivatives Index rose to 4,189 MR/t ($886/ton) at the close of the morning session on October 31, up 4.6% from the open.
The most actively traded December CBOT soybean oil contract hit 73.95 cents a pound, trading at around 73.38 cents a pound in mid-morning trading, up more than 2.2% on the day.
Soybean oil futures on the CBOT rose in October along with other global vegetable oil markets on supply concerns and stronger crude oil prices. On October 27, soybean oil hit a four-month high of 73.97 cents a pound.
The suspension of the grain deal looks positive for palm oil in the short term, David Ng, senior trader at IcebergX Sdn Bhd in Kaula Lumpur, told S&P Global Commodity Insights.
Palm oil, soybean oil and sunflower oil forecast are the top selling vegetable oils and their price fluctuations are interlinked as they compete for global market share.
“The move will create clouds of uncertainty looming over sunflower oil exports from Ukrainian ports and be a potential upside for competing vegetable oils, especially soybean oil and palm oil,” said Anil Kumar Bagani, head of research at brokerage Sunvin Group. based in Mumbai.
Russia announced on October 29 that it was suspending a trade deal with Ukraine after it accused Ukraine of attacking Russian ships in Crimea and said the safety of civilian bulk carriers involved in the deal could no longer be guaranteed, Russian state news agency RIA Novosti reported.
Ukraine’s supplies were limited until the two countries signed a UN-assisted deal with Turkey on July 22 to resume grain and fertilizer exports across the Black Sea.
The corridor originally expired on 19 November. The Black Sea region accounts for 60% of world sunflower oil production and 76% of its exports.
“While the future of the palm oil rally will continue to depend on Indonesia’s expected export tax decision, soybean oil has many factors influencing its strength, including tighter supply forecasts and stronger demand for biodiesel,” said Manoj Shukla, Oils and Meals Analyst at Agriworld.
Market sources expected Indonesia to restore the export tax on palm oil exports from November 1 as the country’s palm oil stocks have returned to manageable levels in recent months after hitting a record high in May.
In the soybean oil markets, meanwhile, soybean processing has been slow in Argentina, while heavy rains have made planting difficult in parts of Brazil. This, along with strong U.S. biodiesel demand, will support soybean oil prices in the near term, Mitesh Saiya, manager at vegetable oil brokerage Kantilal Laxmichand & Co, told oilworld.ru citing S&P Global Platts.