Vegetable oils decline again
By ODA UK | Published at
Oils prices have declined again despite a slight rise on crude oil. The main source of pressure was the publication of expectations from the MPOB report. Traders are expecting Malaysia’s palm stocks to have risen again in October because of an increase in production and a fall in exports. Soybean oil followed suit on the Chicago market.
The prices of soybeans and soybean oil moved near equilibrium. Even though the bumper harvest is arriving on the US market, traders are waiting for the talks between the US and Chinese presidents at the G20 summit at the end of the month.
Lastly, rapeseed lost ground on Euronext in the wake of its Canadian counterpart.
There is very little news from the wheat market with prices ending the session down slightly on Euronext in the wake of Chicago prices. Thanks to precipitation in France this week, weather conditions have improved considerably for germination.
With regard to the international cereals trade, Saudi Arabia has purchased 1MT of feed barley for January/February delivery and Morocco has issued an invitation to tender for the purchase of European durum wheat. There are reports that 100KT of US maize have been sold to Mexico. This increase in demand supported prices in Chicago which were rising slightly at close in Europe. Maize prices have, however, declined on Euronext for the last session of listings on Nov. 18 expiry.