After oil, palm oil fell by 9%, which increased the pressure on vegetable oil prices

Yesterday, palm oil prices fell by 9.5%, which was the biggest daily drop since January 28, 2020. This is due to Friday’s fall in oil prices by 6% and increased exports from Indonesia.

August palm oil futures on the Malaysian stock exchange Bursa yesterday fell by 473 ringgit / t or 9.5% to the lowest level since January 4, 2022 – 4981 ringgit / t or $ 1132 / t.

Indonesia, the world’s largest exporter of palm oil, last week issued a permit to ship more than 820,000 tons of edible oil under a domestic commitment and export acceleration program after nearly a month of banning it.

Price pressures were exacerbated by a 10.5-17% drop in palm oil exports from Malaysia between June 1-20 (according to surveyors), although it rose by 30% in May.

On the Chinese stock exchange in Dalian, futures for soybean oil fell by 2.34% yesterday, and for palm – by 4.99%.

The Chicago Board of Trade did not work yesterday due to the holiday, and today the July soybean oil futures are trading at $ 1,600 / t, losing 11% of the price in two weeks.

In Ukraine, soybean oil prices have stopped falling at 1100-1200 € / t FCA (depending on the region), as processors are short of raw materials at low prices and have difficulty selling meal and pulp due to high export logistics costs.

Against the background of increased supplies, demand prices for Ukrainian sunflower oil with delivery to the ports of Romania, Bulgaria or factories in Poland fell by 10% in two weeks to 1400-1550 $ / t. Amid a collapse in demand for sunflower oil and sunflower in Ukraine, farmers reduced sunflower sales and left some in storage, especially given the decline in sunflower harvest forecasts in the new season by 35-40% to 9-11 million tons.

In May, Ukraine increased its exports of sunflower oil by 23% compared to April to 186,000 tons due to the establishment of supply chains across the western borders and working ports. EU countries bought 82% of the oil exported from Ukraine in May, including Poland – almost 20%.

Tags: Ukraine, sunflower oil, Indonesia, prices, Malaysia, palm oil