In July, palm oil imports significantly exceeded local needs, so in August, refiners sharply reduced imports. Moreover, the prices of palm oil have risen to the level of the prices of soybean oil, so it has become uninteresting for buyers. Palm oil is usually sold cheaper than other vegetable oils, but now prices for September delivery are the same as competing oils.
The company GGN Research, which is engaged in the trade of edible oils, said that in August the margin of palm oil processing became negative, so processors reduced purchases.
At the same time, the import of sunflower oil in August decreased by 21% to 288,000 tons, and soybean oil - increased by 16% to the highest level in the last two years - 456,000 tons, because after the increase in rapeseed oil prices by 8%, some processors began to mix it with much cheaper soybean oil.
According to the Ministry of Agriculture of Bulgaria, in 2023, 47% of Bulgaria’s total exports to China were agricultural and food products. In terms of the export volume in 2022 and 2023, Bulgaria ranks first among the countries of Central and Eastern Europe.
In the oilseeds segment, exports to China in 2023/24 MY (September-June) amounted to:
- SFS – 53.6 K mt (about 10% of total exports);
- SFO – 25.7 K mt (4%);
- sunflower meal – 433.7 K mt (70%).
Currently, the procedures for compliance with the Chinese import requirements for 38 Bulgarian crops and food are close to finalizing, 11 of which are already completed.
Chinese companies successfully invested in Bulgaria in recent years, and some are considering expanding their investments. The establishment of the Demonstration Center for e-commerce in agricultural and other products is an important step in expanding cooperation.
Dry and warm weather in Ukraine accelerates sunseed harvesting but reduces the yield potential. As of September 5, from 780.8 thousand hectares or 16% of the area has already harvested 1.39 million tons of sunseed with a yield of 1.78 t/ha.
Demand price of sunflower oil delivered to ports for the week increased by 10 $/t to 920-930 $/t, while on the border Ukraine-Poland prices fell to 910-915 $/t, although in August the demand price on the Western borders exceeded the port. the Increase in supply of rapeseed oil in the EU has significantly reduced the demand for Ukrainian oil from biodiesel producers, which actively imported it during the summer. Therefore, in August, the export of sunflower oil from Ukraine decreased by 48% compared to July to 227 thsd tonnes, the lowest level since June 2022.
Export prices for sunflower meal with delivery to ports during the week increased by 5 $/t to 190-195 $/t amid rising prices for feed wheat and corn. But the number of offers of rapeseed and soybean meal on the world market is growing, so the price increase will soon stop.
As elaborated, traders polled by Reuters estimated that India's palm oil imports in August fell 27% from the previous month to 791,000 tonnes.
‘In July, imports significantly exceeded local requirements, so refiners reduced purchases this month. Moreover, with the recent increase in palm oil prices, palm oil has become as expensive as soybean oil, which has not created any incentive to buy palm oil,’ Sunvin Group CEO Sandeep Bajoria explained the decline.
Meanwhile, the country's soybean oil imports for the month rose 16% to 456,000 tonnes, the highest in two years. Local rapeseed oil prices have risen more than 8% in the past month, prompting some processors to blend rapeseed oil with comparatively cheaper soybean oil.
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‘41.7 mln tonnes of handled cargoes were products of the Ukrainian agricultural sector, which underlines the importance of this sector for the national economy,’ - is indicated in the message.
It is also noted that in August this year Ukrainian ports handled 6.8 mln tonnes of cargo, which is more than double the result of August last year. Agricultural products exported to international markets accounted for 4 mln tonnes of the total volume.
Extensive crop damages in Gujarat
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