News World news: Futures on soybeans have been rising for the third session. Futures on wheat on the Chicago Board of Trade (CBOT) surged by nearly 4% on Friday, driven by concerns over potential disruptions in grain exports from the Black Sea region, according to analysts. Soybean futures are up for the third session, reaching July highs, as forecasts of hot and dry weather in the United States heightened concerns about crop stress. Corn futures also closed in the positive territory. The most active wheat futures rose by 23-3/4 cents to $6.39 per bushel on the CBOT. Earlier this week, the contract reached its lowest price since June 1. “When it comes to wheat, we overshot the downside a little bit,” said Matt Wiegand, a commodity broker at FuturesOne, as reported by Reuters. CBOT soybeans rose by 23.5 cents to $13.53-1/4 per bushel, reaching the highest price since July 31. Corn prices increased by 7-1/4 cents to $4.93 per bushel. Traders reportedly covered short positions in soy and corn markets ahead of the weekend, as weather forecasts indicate light rain and higher temperatures through the end of August in the U.S. Midwest. Soybeans are considered more vulnerable to potential damage because August is a critical month for crop development. “There’s going to be a lot of acres vulnerable to stress,” Wiegand commented. The change in weather helped markets recover after corn prices hit their lowest levels since December 2020 earlier this week. Next week, traders will evaluate the results of the annual Pro Farmer agricultural tour, during which corn and soybean fields in the Midwest will be examined. “It looks like everything’s gone right for U.S. corn and soybean growers,” stated CRM Agri, a consulting firm. “The weather forecast has turned ‘hostile’ again.” Author: Oilworld

News World news: Egypt purchased sunflower oil at a 9% lower price compared to the previous tender. Over the last month, demand and prices for vegetable oils have been increasing due to the export blockade from Ukraine and forecasts of reduced rapeseed harvest in the EU and soybean harvest in the US due to drought. Therefore, traders closely monitored the tender in Egypt, which was expected to determine the current price trends. This week, the Egyptian GASC announced local and international tenders for the purchase of vegetable oils with deliveries scheduled from September 20th to October 5th, with payment on demand or via 180-day and 270-day letters of credit. For the international tender, there were 6 offers for sunflower oil with immediate payment at prices ranging from $1006 to $1123 per ton C&F (which is $80-$100 lower compared to the previous tender), and 6 offers for soybean oil at prices ranging from $1115 to $1142 per ton C&F (which is $85-$117 lower compared to the previous tender). In the end, GASC purchased 39.5 thousand tons of sunflower oil with immediate payment and delivery from September 20th to October 5th at a price of $990 per ton C&F, which is 9% lower than the previous tender held on July 26th. In that tender, 45 thousand tons of vegetable oils were contracted, including 33 thousand tons of sunflower oil at a price of $1080 per ton C&F and 11.875 thousand tons of soybean oil at a price of $1150 per ton C&F. The sunflower oil was purchased by the following companies: 12 thousand tons by TOI Commodities, 12 thousand tons by Green Suppliers, 10 thousand tons by Oliva AD, 5.5 thousand tons by Aston Agro Industrial. The winners of the tender were the same companies as in the previous trades, but the procurement prices significantly decreased. Forecasts of a good sunflower harvest in Ukraine, Romania, and Russia are putting pressure on sunflower oil prices, especially against the backdrop of increased offers of rapeseed oil in the EU. Exchange prices for palm and soybean oil remain stable at $818 per ton and $1370 per ton respectively for three weeks, due to active exports from Malaysia and the US. Meanwhile, demand prices for sunflower oil have dropped from $985 to $920 per ton. According to surveyors Intertek Testing Services and Amspec Agri, Malaysia increased palm oil exports by 18.9% to 24.2% during August 1-15 compared to the same period in July, which supported the quotations. Dry weather in Indonesia could potentially affect production forecasts, but the increase in offers for rapeseed, soybean, and sunflower oil is expected to limit the growth of palm oil prices in the near future. Author: GrainTrade

News World news: Palm oil has been increasing in price for the second day due to slow production growth and a weak ringgit. Malaysian palm oil futures are rising for the second consecutive session on Wednesday, driven by the growth in exports in the first half of August, production concerns, and the weakening ringgit. The contract for benchmark palm oil for delivery in November on the Bursa Malaysia Derivatives Exchange rose by 1.3 ringgit, or 0.34%, to 3,818 ringgit ($823.02) per metric ton by midday. The weakening ringgit and slower production growth in the first half of August on the Malaysian peninsula have been catalysts for recent price increases, said Paramalingam Supramaniam, the director of brokerage firm Pelindung Bestari from Selangor. He also mentioned preliminary reports indicating a forecast of hot and dry weather in many regions of Indonesia. “In short, the market is in a consolidation phase, and if we don’t see a significant improvement in production, prices will continue to remain supportive,” Paramalingam said. Indonesia’s largest producer lowered the indicative price of crude palm oil (CPO) to $820.35 per metric ton for the period from August 16 to 31, essentially maintaining CPO tax and levy at an unchanged level, according to a trade ministry decree. Exports from Malaysia for the period from August 1 to 15 increased by 18.9% compared to the same period in July, as reported by surveying company Intertek Testing Services on Tuesday. Another surveyor, Amspec Agri, reported a surge of 24.2% in exports. The ringgit continues to decline against the dollar for the fifth consecutive day, making the commodity cheaper for buyers holding foreign currency. The most active Dalian contract for soybean oil added 0.5%, while the palm oil contract jumped by 2%. Soybean oil prices on the Chicago Mercantile Exchange rose by 0.5%. Palm oil is influenced by fluctuations in prices of related oils as they compete for market share in the global vegetable oils market. According to Reuters’ technical analyst, Wang Tao, palm oil appears neutral in the range of 3,778 to 3,861 ringgit per metric ton. Author: Oilworld

News World news: Oil prices are declining due to a decrease in demand in China, but India’s active import of vegetable oils is supporting the market. Since Monday, oil prices have fallen by 2.2-2.5% due to pessimistic economic data from China and a gradual decline in demand. In July, China reduced crude oil imports by 19% compared to June, reaching a 6-month low of 10.33 million barrels per day. Additionally, oil inventories in the country increased to a record 1.02 billion barrels by July 27th. Industrial production in China grew by 3.7% in July, below the expected 4.3%, and retail sales increased by 2.5%, the slowest growth in the past 5 months. In July, China’s exports decreased by 14.5% compared to July 2022, reaching a 5-month low of $281.76 billion, while imports decreased by 12.4% to $201.16 billion, the lowest since May 2020. Import volumes have been declining for 5 consecutive months, partly due to reduced domestic demand. From January to July, exports decreased by 5% compared to the same period last year, imports by 7.6%, and the trade surplus reached $489.57 billion. India, the world’s third-largest consumer of crude oil, reduced its imports by 1.3% to a 7-month low of 19.7 million tons in June, adding further pressure on prices. According to Bloomberg, in the 4 weeks leading up to August 6th, crude oil deliveries from Russia decreased to 3.02 million barrels per day, 870,000 barrels per day below the peak level in mid-May. Brent crude oil prices exceeded $70 per barrel, and the discount relative to the benchmark Brent decreased to $13.9 per barrel due to the circumvention of the price ceiling sanctions ($60 per barrel) by inflating the cost of commissions and transportation of Russian oil associated with Russian vessels. This approach has brought Moscow an additional $1.2 billion over 3 months. Starting from Monday, October Brent oil futures on the ISE exchange fell by 2.2% to $84.9 per barrel, increasing by 8.1% over the month, which supported vegetable oil prices. September palm oil futures on the Malaysian exchange remain stable at 3783 ringgit per ton or $818 per ton (0% for the week, -3.5% for two weeks) due to increased demand from India. On the Chicago exchange this week, September soybean oil futures increased by 2.7% to $1451 per ton (+5.4% for the month) due to reduced soybean stocks, while December futures increased by 2.8% to $1364 per ton (+2.5% for the month) based on expectations of increased soybean harvest in the US. Demand prices for Ukrainian sunflower oil fell by $30-40 per ton to $800-830 per ton FCA, and to $920 per ton delivered to buyers, due to reduced demand amid increased supply of rapeseed oil to the EU. According to the Solvent Extractors’ Association of India (SEA), in July the country imported 1.77 million tons of vegetable oils compared to 1.31 million tons in June and 1.21 million tons in July 2022. Palm oil imports in July increased from 683,000 tons to 1.08 million tons, sunflower oil from 190,000 to 327,000 tons, soybean oil decreased from 437,000 to 342,000 tons, and vegetable oil stocks increased by 12% to 3.2 million tons. In total, in 2022/23 MY, India increased palm oil imports by 46% from 4.86 million tons to 7.11 million tons, sunflower oil imports by 45% to 2.18 million tons, but reduced soybean oil imports by 15% to 2.82 million tons. The Egyptian GASC will hold an international tender on August 16th for the purchase of vegetable oils with delivery from September 20th to October 8th, which will set a new price benchmark. Author: GrainTrade

News World news: The Ukrainian rapeseed market is already feeling the global trend towards rising prices – experts. The Ukrainian rapeseed market is already experiencing a global trend of price increase. Analysts from the “PUSK” cooperative have come to this conclusion. “We are witnessing a decrease in the pace of rapeseed exports. Ukraine needs to export 350-400 thousand tons monthly, but the actual exports are exceeding 220 thousand tons. For September, Ukrainian rapeseed has been contracted for forward delivery to Romania, Lithuania, and Germany solely through road and railway transportation. Forward contracts are not being concluded at small river ports; there, only the spot market operates. The rapeseed supply is low,” noted the analysts. They also observed that Ukrainian processors are gradually raising their purchase prices to 14,000 hryvnias per ton, with certain regions already reaching 14,200 hryvnias per ton. “Large shipments of 2-3 thousand tons of rapeseed are heading to the EU, which forces domestic processors to increase their prices,” explain the experts. Furthermore, they predict that within the upcoming week, indicative prices at small river ports could rise to $380-390 per ton, and processor purchase prices could reach 14,400 hryvnias per ton. Author: APK-inform

News World news: The global sunflower production forecast has been increased due to a good harvest in Ukraine and Russia. In the August report, USDA experts increased the forecast for global sunflower production in the 2023/24 marketing year by 2%, due to favorable weather conditions and a good harvest in Ukraine. This harvest is expected to exceed the 2022/23 level by 6.4%, but will still be 2% lower than the record level of 2021/22. USDA experts raised the forecast for global sunflower production by 1.1 to 55.8 million tons (compared to 52.441 million tons in 2022/23), including an increase for Russia by 1 to 17.5 (from 16.254) million tons and for Ukraine by 1.1 to 13.5 (from 12.2) million tons. However, the Uzbekistan Agriculture Ministry assesses it at 12.7 million tons. Production estimates were lowered for the EU by 0.65 to 10.85 (from 9.207) million tons, China by 0.14 to 2.25 million tons, Kazakhstan by 0.1 to 1.3 million tons, and Turkey by 0.1 to 1.65 million tons. The forecast for sunflower exports in the 2023/24 marketing year has been reduced compared to the previous season, from 4.6 to 3.67 million tons, including Ukraine’s forecast dropping from 2.025 to 0.8 million tons. It’s worth noting that the export forecast for 2022/23 remains at 2.025 million tons, although the actual exports from September to July were only 1.85 million tons, making it unlikely to ship 175,000 tons of sunflower during August. The forecast for sunflower processing in the 2023/24 marketing year has been raised for Ukraine by 0.6 to 12.7 million tons and for Russia by 0.6 to 16 million tons, while it has been lowered for the EU by 0.4 to 10 million tons. The estimate for global ending sunflower stocks has been raised by 0.571 million tons to 5.217 (from 5.614) million tons, including an increase for Ukraine by 0.5 to 1.6 million tons and for Russia by 0.33 to 1.307 million tons, while the forecast for the EU has been reduced from 0.636 to 0.424 million tons. In Ukraine, there’s an increase in demand for sunflower towards the end of the season due to reduced stocks and growing demand for sunflower oil in the EU. However, as the supply of new rapeseed oil increases and sunflower harvesting approaches, vegetable oil prices are expected to decrease. Purchase prices for sunflower remain at the level of 15,000-16,000 UAH/ton with delivery to the plant. However, the blockade of vegetable oil and meal exports from Black Sea ports will exert pressure on prices if processing volumes increase. Author: GrainTrade

News World news: USDA experts have lowered their forecasts for soybean production and stocks, but they will still exceed last year’s figures by 9% and 15% respectively. In the August USDA report, changes in the soybean balance were primarily related to the United States, and they aligned with analysts’ preliminary assessments. As a result, market prices reacted with a decline, considering the improved weather conditions in the U.S. On the Chicago exchange, soybean futures for September fell by 1.1% to $491.4/ton (-8% for the month), and November futures dropped by 0.8% to $480.4/ton (-1.6%). Compared to the July report, the new balance for soybeans in the 2023/24 marketing year underwent the following changes: The initial inventory estimate was raised by 0.2 to 103.1 (99.14) million tons due to adjustments in the 2022/23 balance. The forecast for global production was lowered by 2.52 to 402.79 (369.74) million tons, including a reduction for the U.S. by 2.58 to 114.45 (116.38) million tons due to a decrease in yield from 3.46 to 3.42 (3.32) tons/ha, although analysts had estimated it at 3.447 tons/ha. The estimate for global exports was reduced by 0.52 to 168.77 (168.95) million tons, with a decrease for the U.S. by 0.68 to 49.67 (53.89) million tons. The forecast for global ending stocks was lowered by 1.58 to 119.4 million tons, which is slightly below analysts’ estimates of 120.04 million tons, but significantly exceeds the stocks of the past three seasons: 102.9 million tons in 2022/23, 99.7 million tons in 2021/22, and 100.3 million tons in 2020/21. Author: GrainTrade

News World news: Ukraine: Prices for rapeseed remain at last week’s levels. Rapeseed prices remain at last week’s levels. In terms of Europe, active imports of Australian rapeseed are saturating the domestic market. Thanks to the export margin of Australian rapeseed, which is approximately $80 per tonne, rapeseed prices in Europe will be well contained from rising. Last year, the import of Australian rapeseed amounted to over 3 million tonnes, accounting for nearly 50% of the total volume. Latest buyer indications: DAP Latvia (central) 40% ~ €385-390 DAP Ukraine (border) (train) ~ €345-348 DAP Germany (East) (truck) 40% ~ €420-425 DAP Germany (East) (train) 40% ~ €395-400 CIF Romania (port) 43% ~ €400-408 Author: Spike Brokers

News World news: In June, Canada exported the lowest volume of canola in the last 9 months. According to Oil World (Germany), in June, Canada exported only 292,000 tons of canola seeds to external markets, which is a 48% decrease compared to the previous month (561,000 tons) and represents the lowest export volume in the last 9 months. It is noted that the low export pace was attributed to reduced demand from China during that period. However, from January to June 2023, Canadian canola shipments to China sharply increased to 2.4 million tons (+2 million tons), fully compensating for the annual reduction in shipments to the EU, Japan, and the USA. In July, experts expect canola exports from Canada to resume to around 480-500 thousand tons. Therefore, in the 2022/23 marketing year, Canada could export a total of 7.6 million tons of oilseeds, exceeding the previous year’s result by 2.3 million tons. Author: APK-Inform

News World news: The demand for palm oil has increased due to a surge in prices of other oils and supply issues. The demand for palm oil is increasing as its discount compared to soybean oil and sunflower oil grows. This is attributed to the recent rise in prices of competing oils due to production issues in the US and supply disruptions from the Black Sea region, industry representatives have stated. It’s expected that this surge in demand will help Indonesia and Malaysia reduce their palm oil inventories while also strengthening futures for Malaysian palm oil. “Aggressive pricing is aiding palm oil as buyers are switching to palm oil from other oils for supplies for nearly a month,” said Sandeep Asthana, CEO of Patanjali Foods Ltd (PAFO.NS), India’s largest palm oil buyer. India, the world’s largest consumer of edible oils, imported 1.09 million metric tons of palm oil in July, nearly 60% more than in June, marking the highest in seven months. According to Asthana, India’s imports will remain stable in August and September as well. Crude palm oil is being offered at $910 per ton, including cost, insurance, and freight (CIF) to India for September deliveries, compared to $1050 and $1010 for crude soybean oil and crude sunflower oil respectively, as reported by dealers. Over the past month, soybean oil prices have surged due to production issues in the United States and reduced supplies from Argentina, the largest exporter. Meanwhile, sunflower oil prices have risen after Russia withdrew from the Black Sea grain deal, according to a dealer from a global trading firm based in New Delhi. The Black Sea region accounts for 60% of the world’s sunflower oil production and 76% of its exports. “Palm oil prices haven’t risen; instead, they have decreased due to growing inventories in producing countries and have become even cheaper for buyers,” the dealer said. Price-sensitive Asian buyers traditionally rely on palm oil due to its low cost and fast delivery times. In addition to India, China, Bangladesh, and Pakistan have also increased their purchases of palm oil for deliveries in August and September, as reported by a trader from Mumbai. China’s July import of vegetable oil, mostly consisting of palm oil, jumped by 48% compared to the previous year, reaching 778,000 tons. The discount on palm oil compared to competing oils is likely to gradually decrease as growing exports lead to reduced stocks both in Malaysia and Indonesia, the trader stated. According to the Malaysian Palm Oil Council, palm oil exports from Malaysia grew by 15.55% to 1.35 million tons in July. In the first ten days of August, Malaysian palm oil product exports rose by 17.5% to 383,795 tons, as reported by AmSpec Agri Malaysia on Thursday. Author: Reuters