Falling soybean oil prices weigh on other vegetable oil markets
Increased supplies of soybeans, soybean oil and meal from South America and higher forecasts for the US soybean crop due to favorable weather are increasing pressure on global soybean and soybean oil prices. In China, as a result of active imports of soybeans, prices for soybean meal for the month fell by almost 8%, which reduced the demand for the oilseed.
Falling prices for soybean oil put pressure on the markets for other vegetable oils. Prices for palm and sunflower oil have not yet declined, while prices for rapeseed oil on FOB Rotterdam fell by 6.5% to 1030 $/t for the week, which corresponds to the level of last year.
On the Chicago stock exchange during the week, the November soybean futures fell 5.3% to 375 $/t (-8.7% for the month, -23% for the year) under pressure from favorable weather for crops in the United States, and December soybean oil futures – by 7.3% to 925 $/t (-8.8% for the month, -36% for the year).
In addition, prices are under pressure from the decline in oil prices. September futures for Brent crude oil fell by 3% to $78.7 per barrel over the week (-10% over the month) amid worse-than-expected data on the state of the Chinese economy and a decline in speculative demand caused by political tensions in Gaza.
September futures for palm oil on the Bursa exchange for the week fell by 1.4% to 3915 ringgit/t or 847 $/t, but further decline is restrained by a significant increase in oil exports from Malaysia in July.
According to the surveyors Intertek Testing Services and Societe Generale de Surveillance, during July 1-25, the export of palm oil from Malaysia increased compared to the same period in June by 31-32%.
According to Trading Economics, the average price of sunflower oil for delivery to buyers fell by 0.3% to 907 $/t during the week. However, in Ukraine, against the background of reduced supply, prices for sunflower oil increased by 10-25 $/t to 855-900 $/t FCA factory. In the South of the country has already begun harvesting sunflower, which in the near future will increase the volume of oil supply.
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