News World news: China may increase its import of soybean oil to the highest level in the last two years in the next two months. According to Oil World (Germany) forecasts, China may increase its import of soybean oil to 320-330 thousand tons during July to September of this year, which would be the highest level for the specified period in the last 2 years and more than three times higher than the import volume in the same quarter a year earlier (103 thousand tons). The increase in imports is expected due to relatively low soybean oil stocks in China as of the end of June, as well as low oilseed processing volumes and, consequently, reduced soybean oil production. In particular, analysts expect China to purchase around 200 thousand tons of soybean oil from Argentina, 100 thousand tons from Brazil, and the rest will be supplied from Russia. Thus, China’s total soybean oil imports in 2022/23 marketing year (October-September) could reach 670-680 thousand tons, almost doubling the result of the 2021/22 marketing year (347 thousand tons), but significantly lower than the 2020/21 marketing year (1.28 million tons).

News World news: Malaysia is expected to boost its Gross Domestic Product (GDP) through palm oil. The initiatives proposed by Malaysia’s Prime Minister Anwar Ibrahim can stimulate the country’s economy and boost its GDP, according to Deputy Prime Minister Fadillah Yusof, as reported by Malay Mail. Fadillah, who also holds the position of Minister of Plantation Industries and Commodities, added that the agricultural sector plays a crucial role in the country’s economy by creating jobs for local people and increasing the country’s GDP. “In the context of the global food crisis, it is important for the country to continue developing a strategy that does not solely rely on raw material production but also diversifies the production of high-value-added products,” said Fadillah. He stated that the ministry, through the Malaysian Palm Oil Council (MPOB), will intensify the production of hybrid palm varieties that can yield more oil using limited land areas, in line with the Prime Minister’s aspiration to optimize the use of existing agricultural land. It is worth noting that Malaysia, together with Indonesia, produces almost all the palm oil that enters the global market.

News World news: An expert talked about the situation with sunflower oil supplies to India. Indian traders are concerned about the developments in the Black Sea region after the suspension of the “grain deal,” but local importers continue to purchase sunflower oil from Ukraine, as well as from Bulgaria, Romania, Russia, and Argentina. Sandeep Badjoria, the CEO of Sunvin Group, stated this according to “APK-Inform.” “As for the prices, sunflower oil was previously traded at $825 per tonne on a C&F basis in Indian ports. By July 26, the price reached $1060 on a CIF basis. Over the last two weeks, the price has increased due to the developments in the Black Sea region. However, soybean oil is still trading at around $1120-1125, sunflower oil at an average of $1060-1065, and crude palm oil at $970. Overall, we can say that the prices of sunflower oil are attractive and beneficial for Indian importers,” he noted. Badjoria also mentioned that the further volume of sunflower oil purchases by India in August-September of this year will depend on the global market conditions and the situation in Ukraine. It is worth noting that this season, India’s share in the structure of Ukrainian sunflower oil imports has decreased to 26% from 80% in the previous agricultural year.

News World news: Egypt purchased sunflower oil at $154 per tonne more expensive than in the previous tender. During the last month, demand and prices for vegetable oils have been gradually increasing due to the export blockage from Ukraine and reduced forecasts for rapeseed in the EU and soybean in the US due to drought. Therefore, traders closely monitored the results of the Egyptian tender for food procurement, which served as an indicator of price trends. On July 26, the Egyptian state operator GASC purchased 45,000 tons of vegetable oils, including 33,000 tons of sunflower oil at a price of $1080/ton C&F from the following companies: 12,000 tons from TOI Commodities with delivery between August 6 and August 20, 10,000 tons from Oliva AD with delivery between August 6 and August 20, 5,500 tons from Aston Agro Industrial with delivery between August 6 and August 20, 5,500 tons from Aston Agro Industrial with delivery between August 20 and September 5. In addition, LDC purchased 11,875 tons of soybean oil at a price of $1150/ton C&F with delivery between August 20 and September 5. The purchase price of sunflower oil was $154/ton higher, and soybean oil was $102/ton higher compared to the previous tender on June 13. The volume of purchased oil tripled, indicating GASC’s unrealistic expectations of price reductions ahead of the new season. The number of bids submitted at the tender also increased. GASC received 6 offers for sunflower oil at prices ranging from $1114 to $1196/ton, and 8 offers for soybean oil at prices ranging from $1200 to $1259/ton. High prices for soybean and sunflower oil are due to reduced supplies from Ukraine, the US, and Argentina, along with decreasing soybean and sunflower stocks and lower soybean crop forecasts in the US for the new season. Yesterday, on the Chicago Exchange, September soybean oil futures fell by 1.8% to $1450/ton (after a 10% increase over the week), and December futures fell by 1.8% to $1370/ton (+11.9% for the month).

News World news: In July, the import of vegetable oil to India is expected to grow to a record level, according to the forecast. India may import a record 1.86 million tons of vegetable oil in July, which is almost 0.6 million tons higher than the previous month, according to market participants surveyed by Reuters. According to their estimates, the import of the mentioned product into the region will increase amid a seasonal rise in demand in the country ahead of national festivals and uncertainty with shipments via the Black Sea after the completion of the “grain deal.” “From July 1 to 24, about 1.5 million tons of edible oils were unloaded at Indian ports. It is expected that another 386,000 tons will be received in the remaining seven days,” the materials said. Preliminary estimates suggest that palm oil imports will grow by 46% compared to the previous month, reaching 1 million tons, the highest level so far this year. Imports of sunflower oil could double by June, reaching 385,000 tons. Soybean oil deliveries are expected to reach the highest level of the year at 475,000 tons. Indonesia, Malaysia, and Thailand are the main suppliers of palm oil to India. Soybean oil is primarily sourced from traders in Argentina and Brazil, while sunflower oil is imported from Ukraine and Russia.

News World news: Prices of sunflower oil are rising in line with the prices of soybean and palm oil. The rise in quotations for vegetable oils supports the demand and prices for Ukrainian sunflower oil, especially considering the reduction in its supply towards the end of the season. Over the week, demand prices for Ukrainian sunflower oil have increased by $30-40/ton to $880-900/ton FCA (Free Carrier) – plant, and prices with delivery to buyers have reached $950/ton, despite difficulties with shipments from Black Sea and Danube ports due to Russian attacks. As sunflower stocks diminish, processing plants are shifting to rapeseed, leading to a shortage of sunflower oil supply. The vegetable oil markets are being driven by a 12% increase in oil prices over the month, reaching a 3-month high. September futures for palm oil on the Bursa Malaysia exchange rose to a 4.5-month high of 4164 ringgits/ton on Monday but fell 2.26% to 4070 ringgits/ton or $891/ton yesterday as traders began taking profits. Quotations were supported by an increase in exports, which rose by 10.8% compared to the same period in June, according to estimates by the surveyor AmSpec Agri Malaysia, and by 17.8% according to the surveyor Intertek Testing Services. Traders expect India to increase its import of edible oils by 60% to a record 1.86 million tons in July as processing plants build stocks ahead of festivals amid uncertainty in supplies from the Black Sea region. On the Chicago exchange, September futures for soybean oil rose by 10.5% to $1508/ton over the week due to reduced soybean stocks, and December futures rose by 6.4% to $1415/ton on forecasts of a smaller soybean crop in the US due to drought. An increase in new-crop rapeseed oil supplies in the EU will reduce demand for vegetable oils, especially sunflower oil, at the end of August.

News World news: Futures for Malaysian palm oil declined on Tuesday, July 25, 2023. Futures for Malaysian palm oil declined on Tuesday as traders booked profits after prices reached a 4.5-month high in the previous session. The contract for palm oil delivery in October on the Bursa Malaysia Derivatives Exchange dropped by 94 ringgit, or 2.26%, to 4,070 ringgit ($892.54) at the end of Tuesday’s trading. The contract had gained around 3.2% in the previous session, reaching its highest level since March 10. Slow production growth in July was confirmed by data published by the Malaysian Palm Oil Association. According to AmSpec Agri Malaysia, palm oil exports from Malaysia increased by 10.8% compared to the previous month and by 17.8%, according to surveyor Intertek Testing Services, in the period from July 1 to July 25. Palm oil prices are influenced by fluctuations in prices of related oils as they compete for market share in the global vegetable oils market. In July, edible oil imports to India were expected to soar to a record 1.86 million metric tons, nearly 60% more than usual, as refineries increased purchases to build reserves for festivals amid uncertainties in supplies from the Black Sea, dealers and cargo surveyors said on Tuesday. (1 dollar = 4.5600 ringgit)

News World news: On Monday, July 24, 2023, futures for wheat and soybeans in the USA experienced a rise in their prices. On Monday, July 24, 2023, wheat futures in the USA surged by 8.6%, reaching a daily high on the Chicago Board of Trade (CBOT) after news about damages to Ukrainian ports on the Danube river. Corn and soybeans also rose in response to the wheat futures, and the forecast of hot weather in the US agricultural belt added further support. As of the evening Greenwich time, September CBOT wheat (WU3) exceeded the daily limit by 60 cents, reaching $7.57-1/2 per bushel, the highest level in a month. December corn futures rose by 32-1/2 cents to $5.68-3/4 per bushel, and November soybean futures rose by 24-1/4 cents to $14.26 per bushel. “Russia continues to dump cheap wheat onto the world market, and with Brazil’s record crop, the world will be well-supplied with corn,” wrote Arlan Suderman, Chief Commodities Economist at StoneX, in a note to clients, as reported by Reuters. “But the long-term consequences of the export infrastructure destruction by a major world exporter have more serious implications,” Suderman added. Ukraine significantly expanded grain exports overland through the EU after the conflict began last year, exporting around 1 million tonnes per month. The majority of these volumes were exported from Romanian ports and via the Danube river. The European Union’s crop monitoring service further reduced its yield forecasts for this year’s harvest, citing dry and hot weather. Ahead of the weekly US Department of Agriculture crop condition report, analysts surveyed by Reuters, on average, expected the government to rate 58% of the US corn crop as good to excellent, up 1 percentage point from the previous week, while soybean ratings remained unchanged at 55% good to excellent. The United States is the world’s second-largest exporter of corn and soybeans after Brazil.

News World news: India increased its import of vegetable oils in June. According to the Solvent Extractors Association of India (SEA), in June, India increased its import of vegetable oils by 24% compared to May, reaching 1.3 million tons. Specifically, palm oil imports increased by 56% to 683,130 tons, and soybean oil imports increased by 37% to 437,660 tons. However, imports of sunflower oil decreased by 35% to 190,790 tons. The almost complete halt in the operation of the grain corridor in June led to a decrease in bulk shipments of sunflower oil that could have been directed to India. In July-August, sunflower oil exports from Ukraine are expected to further decrease due to the expiration of the grain agreement. However, shipments through the Danube ports and western border crossings will increase. Operational data shows that in June, Ukraine increased its export of sunflower oil by 5% compared to May, reaching 476,000 tons. Particularly, exports to EU countries increased by 37% to 256,000 tons, which is the highest figure since December 2022. Overall, in the first ten months of the 2022/23 marketing year, sunflower oil exports amounted to 4.8 million tons, with the EU accounting for 41% or 1.95 million tons (32% more than the same period in the 2021/22 marketing year). According to the European Commission, Ukraine’s share in sunflower oil supplies to the EU in September-June of the 2022/23 marketing year increased to 88% compared to 82% in the 2021/22 marketing year. On the Bursa Malaysia Derivatives Exchange, September futures for palm oil rose by 1.3% to 3,930 ringgits per ton or $862 per ton, with a weekly increase of 0.3%. This was based on data from surveyors Amspec Agri and Intertek Testing Services, which indicated an increase in exports by 16.7-19.3% during the period of July 1-15. Indonesia, where legislation requires palm oil exporters to sell a portion of their production in the domestic market, may reduce palm oil supply after increasing the biodiesel blend mandate to 35% in fuel. August futures for soybean oil on the Chicago Board of Trade declined by 0.4% to $1,427 per ton (-0.7% for the week, +10.6% for the month). Prices for sunflower oil with buyer delivery decreased to $895 per ton during the week, but there was a slight increase in demand for new crop oil deliveries.

News World news: Prices for wheat have increased by 1.3% to 3.4% due to a decline in crop forecasts in the EU and the suspension of a grain agreement. The wheat market continues to face pressure due to uncertainty surrounding the future of the grain agreement. However, at the end of the week, prices sharply increased following a downward revision of wheat production forecasts in the EU, which dropped to last year’s levels. On Sunday, the last grain-carrying vessel departed as part of the grain agreement from a Black Sea port. The chances of extending the agreement are minimal, although Erdogan claimed to have agreed with Putin on its extension, a statement later denied by the Russian side. Yuriy Vaskov, Deputy Minister of Infrastructure of Ukraine, stated that the country would not agree to extend the grain agreement under current conditions, but would only consider a 120-day extension, as it is not efficient for farmers and exporters. If the agreement is not extended for 240 days, Ukraine will explore alternative scenarios, including continuing to work with Turkey and the UN without Russian involvement. According to the State Customs Committee (SKT), 11 grain vessels were inspected in July, with an average inspection rate of 1.3 vessels per day, compared to 10-11 vessels per day in September-October 2022. French agency Strategie Grains lowered its forecast for EU soft wheat production in 2023/24 MY by 2.5 million tons to 126.2 million tons, which is 11.8 million tons below the July USDA forecast and only 1% higher than the 2022/23 MY figure. Precipitation is delaying the harvest of winter wheat in the United States, and yield data varies significantly depending on regions and the amount of rainfall in June. Over the week, U.S. wheat export sales decreased by 2.5% to 395.7 thousand tons, totaling 5 million tons for the season, which is in line with last year’s pace. September futures increased on Friday, compensating for the decline caused by the July USDA report: Soft red winter (SRW) wheat in Chicago rose by 3.4% to $243.1/ton. Hard red winter (HRW) wheat in Kansas City rose by 2.8% to $304.6/ton. Hard red spring (HRS) wheat in Minneapolis rose by 2.6% to $324.9/ton. Black Sea wheat in Chicago rose by 0.1% to $233.5/ton. Wheat on the Euronext exchange in Paris rose by 1.3% to €233.25/ton or $260.2/ton. In Ukraine, as of July 14th, 714.6 thousand tons of winter wheat have been harvested from 211.8 thousand hectares, with a yield of 3.37 tons per hectare. In comparison, by the same date last year, 1.7 million tons of wheat were harvested from 588.3 thousand hectares, with a yield of 2.88 tons per hectare (4.11 tons per hectare in 2021). In the eastern regions of Russia, the harvest of spring wheat began 2-3 weeks earlier than usual due to drought conditions during the maturation period.