
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.
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