|
Mumbai, 20 Jan (Commoditiescontrol):Donald Trump has delayed imposing tariffs on key trading partners, White House officials confirmed on Monday. This decision means tariffs, at least for now, will not apply to Chinese used cooking oil (UCO) and Canadian canola oil, offering these imports a competitive advantage. The tariff delay could increase competition for soy oil in biodiesel production, potentially curbing its demand.
Crude oil prices also declined on Monday after Trump’s second-term inauguration, during which he declared a national energy emergency. His announcement to expedite filling strategic petroleum reserves and expand U.S. energy exports further pressured crude prices. Falling crude oil prices reduce biodiesel's cost-effectiveness by raising government subsidy burdens, which may dampen demand for soy oil and other vegetable oils used as feedstocks.
The Chicago Board of Trade (CBOT) remained closed on Monday for the Martin Luther King Jr. holiday, delaying market reactions to these developments. Analysts expect the combined effects of lower crude oil prices and increased competition from tariff-free imports to influence soy oil futures and other vegetable oil markets when CBOT trading resumes on Tuesday.
Market participants will focus on CBOT trends to gauge the potential impact on prices and demand for vegetable oils in the coming days.
(By Commoditiescontrol Bureau; +91-9820130172)
|
0 Comments 
Post Comment 
