Palm oil prices in free fall, other oilseeds bring in - rapeseed can hardly hold
Palm oil , in addition to soy, is regarded as the market leader in the oilseed business. Due to the great exchange possibilities of the vegetable oils among themselves, the prices of the different origins influence each other.
The palm oil courses are currently in free fall. The quotations are within a month of converted almost 450 to approx. 360 € / t liked. The main reason is the increased production in the main production areas of Malaysia and Indonesia, which reach their seasonal peak in each oct of a year. At just average export quantities far above average inventories build up.This process should continue in the next two months because the falling production will still be higher than the uses.
In the case of export, especially China as a buyer is clearly lagging behind. The Netherlands has also noticeably reduced its imports. The Philippines are short. The other importers show only limited growth rates.
The fallen crude oil prices reduce the attractiveness of biodiesel production. In any case, the use of palm oil for this purpose in the winter period is withdrawn, because at low temperatures, the risk of flocculation is greater.
Courses in the soy sector are currently torn between hope and anxiety over the reduction of trade tensions in the US-China relationship. Currently, soybean oil prices tend to weaken at a below-average level of 27 USct / pound, or 526 € / t.
The rape courses in Paris have had to yield to the competition under international pressure and are struggling to keep up with the 370 € / t mark. In Canada , the prices for Canola have fallen even more. High initial stocks in conjunction with a good harvest ensure a high supply, which is mainly on the export market , because the processing capacity in their own country are exhausted.
Despite tight EU supply situation in the case of oilseed rape, the courses have little room for improvement for competitive reasons.
