As of 24 September, sunoil FOB 6 ports buying ideas soared to 1085 USD/MT for October-November-December delivery. It is 30-35 USD/MT higher vs buying ideas heard at the end of previous week. And on 25 September 6 ports continues their increase.

ASAP Agri asked Sergiy Repetskiy, partner with Sunstone Brokers, if Chinese incentive to boost its economy and stock markets was the reason for such a jump in prices or it was something else?

S. Repetskiy: “Chinese incentives in this case have absolutely nothing to do with the rise in sunoil prices. The goal of Chinese incentives is to revive mortgage lending first of all, because a lot is being built and nothing is being sold. How much sunflower oil was traded in China after the incentives were announced? How much did the price rise there? Maybe $5 USD/MT. How much was traded in India in 3 days? 125 KMT sunoil was traded. Trade levels CIF India rose by 50 USD from 1065 USD/MT last Thursday to today 25 September to 1115 USD/MT. So, who is driving the market, China or India? The answer is obvious. India was the main driver of the rise. Sunoil is 20 USD higher than soyoil on a CIF India basis. This maintains good demand for sunoil.”

Do we expect for a further active demand from the side of India? The reply for this question ASAP Agri prepared for its Premium subscribers.