Decline in soybean oil prices by 4.3% increases pressure on palm and sunflower oil markets

After speculative growth of 11% since the beginning of July, soybean oil futures yesterday declined amid improving condition of soybean crops in the United States and profit-taking by traders.

the August futures for soybean oil on the Chicago stock exchange yesterday fell 4.3% to 1020 $/t, losing a week’s growth, but still remain 5% more expensive than a month ago.

According to the NASS USDA, in the United States the number of soybean crops in good or excellent condition for the week increased by 2% to 68% (51% last year), which also increased pressure on the quotes of soybeans and soybean oil.

September futures for Brent crude oil for 4 sessions fell by 3.3% to 84.6 $/barrel (-2% for the week, +4.1% for the month), which also negatively affects the quotations of vegetable oils and oilseeds.

In anticipation of the report of the Malaysian palm oil Board on supply and demand and following the prices of soybean oil, August futures for palm oil on the Bursa exchange yesterday fell 2% to 3959 ringgit/t or 841 $/t (-3.3% for the week), as traders expect an increase in stocks due to increased production and reduced exports. According to the average estimate of 12 planters, traders and analysts surveyed by Reuters, palm oil stocks in June increased by 4.53% to 1.83 million tons.

According to Trading Economics, the average price of sunflower oil for delivery to buyers during the week fell by 0.8% to 920 $/t amid increased competition from cheap palm oil in the Indian market and increased supply of rapeseed oil in the EU.

Tags: sunflower oil, prices