Palm and soybean oil quotes have risen, but have not yet supported sunflower oil prices

Oil prices have stabilized, so vegetable oil markets are responding mainly to demand data. Palm and soybean oil prices are rising as India increases imports of cheap oil.

August palm oil futures on the Bursa Malaysia exchange rose 2.4% to MYR 4,062/t or $961/t (-1% in two weeks) on the back of increased demand.

India sharply increased palm oil imports to an 11-month high in June, thanks to falling domestic stocks and a big discount in price compared to soybean and sunflower oils.

Palm oil exports from Malaysia in June grew by only 4.3-4.8%, although in the first half of the month they were 17.7-26.3% ahead of the May figure, so stocks in Malaysia will probably grow again, which will increase the pressure on quotes after the data is clarified.

Exports of crude and refined palm oil from Indonesia in May increased by 53% compared to May last year, from 1.23 to 1.88 million tons, as the tropical oil began to be sold at a significant discount compared to competitors.

July soybean oil futures in Chicago for the week fully recovered the previous week’s 5.8% drop and rose 6% to $1,211/t (+17% month-on-month) amid restrictions on the supply of canola oil from Canada for the biofuel industry and supported by rising soybean prices.

It is worth noting that on the Chinese Daylian exchange, the price of soybean oil for delivery in June remains at $1,120/t, while the price of Brazilian soybean oil has increased by $10-20/t to $1,080-1,090/t FOB Brazil.

Prices for sunflower oil delivered to India decreased by another $5-10/t to $1,190-1,195/t CIF Mumbai during the week due to increased supply from Argentina and increased demand for cheap palm oil.

Export prices for sunflower oil in Ukraine remain at $1,100–1,110/t with delivery to Black Sea ports, while the offer prices for Russian oil fell by $20–30/t to $1,100–1,110/t FOB per week.

In the EU, prices for rapeseed oil for delivery in July also decreased by $20-30/t to $1,250-1,260/t FOB Netherlands during the week, amid a sharp drop in rapeseed and biofuel quotes.

The vegetable oil market remains under pressure from forecasts of lower oil prices and increased supply of soybean and rapeseed oil, so sunflower oil prices in Ukraine have no prospects for growth.

Tags: soybean oil, EU, prices, India, Malaysia, palm oil, Ukraine, sunflower oil