Futures for palm oil in Malaysia for the week rose by 8%, which supported the price of sunflower oil

Futures for palm oil in Malaysia over the past week rose by 8% amid possible supply disruption due to heavy rains, which reduced the already low production volumes.

February futures for palm oil on the Bursa exchange on Friday rose by 2.82% to 5023 ringgit/t or 1131,3 $/t, adding for the week 8.21%, which was the largest weekly increase since June 2023.

Experts believe that heavy rains, especially in the East and North of Malaysia, will worsen the already weak palm oil production in the country. In some states, the situation may be complicated by floods, and reduced supplies will keep prices high.

According to the Malaysian Palm Oil Board (MPOB), during October, palm oil stocks in the country decreased by 6.32% to 1.88 million tons, and its production decreased by 1.35% to 1.8 million tons.

On the Dalian stock exchange on Friday, the most active contract for soybean oil rose by 1.49%, and for palm СРО – by 3.05%. Stock exchanges in the United States were closed on the occasion of the celebration of Thanksgiving, but today they will open the week with rising prices for soybean oil, which for 2 weeks fell by 9.1% to 919 $/t.

Rise in prices of palm oil will support the price of sunflower oil in Ukraine, which for the week fell in the ports by 30-50 $/t to 1110-1120 $/t under pressure from speculative lower prices for soybean and rapeseed oil. However, the rapid recovery of rapeseed prices indicates that the oilseed markets will soon return to previous levels.

Tags: sunflower oil, prices, palm oil