Volga Baikal AGRO NEWS Update on the Price Situation with Soybeans and Sunflower Seeds on World Markets !!!

Experts explained the reasons for the rise in prices for soybeans and sunflower seeds on world markets

Volga Baikal AGRO NEWS Update on the Price Situation with Soybeans and Sunflower Seeds on World Markets !!!

Experts explained the reasons for the rise in prices for soybeans and sunflower seeds on world markets.

Despite the correctional decline in futures for major types of vegetable oils, which has been going on since the second half of September, the markets for soybeans, sunflower seeds and meal continue to grow in the world market.

“The temporal uncorrelation of trends in these linked markets is due, on the one hand, to an increase in demand for soybeans and oilseed meal, and on the other, to a decrease in demand for vegetable oils due to high prices,” –  explained analysts.

The fundamental factors in the global market that influenced prices are:

  • Decrease in the expected global production and ending stocks of sunflower and soybeans amid consistently high demand from the Chinese livestock sector for soybeans and oilseed meal.
  • Low rates of soybean sowing in Brazil for the 2020/21 MY. Until mid-October, only 8% of the planned area was planted, which is the lowest figure in the last 10 years.
  • Seasonal growth in palm oil production in Indonesia and Malaysia.
  • Reduced import demand, in particular from India, for vegetable oils due to high prices.

In addition, as analysts write, on the oilseeds market in Ukraine, after the correction in the second half of September, the physical oilseeds market continued to grow actively.

“The prices are supported by the bullish dynamics on the stock exchanges, the decrease in the forecast of the gross harvest and the lag in the harvest rates of last year for sunflower and soybeans. Rapeseed prices remain stable amid a seasonal decline in liquidity, “- noted in Zernotorg.ua.

Recall that the stocks of grain, legumes and sunflower seeds in Ukraine as of October 1, 2020 amounted to 15.43 million tons, which is 32% or 7.33 million tons less than last year (22.76 million tons).

Source: Oilworld.ru

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