Prices for vegetable oils are rising amid increased export demand

Caused by instability in the Middle East, the rise in oil prices for the week by 3.8% led to higher prices for vegetable oils.

November futures for palm oil on the Bursa exchange for the week rose by 3.5% to 3947 ringgit/t or 907 $/t (+2.5% for the month) amid increased exports in September after the August decline.

According to ITS, for September 1-20, Malaysia increased the export of palm oil compared to the same period in August by 10% to 953,98 thousand tons.

According to admis.com estimates, in 2024/25 MY India will increase the demand for vegetable oils from 16.3 to 16.8 mln tonnes compared to the current season, so the imports of palm oil will increase from 9.44 to 9.8 mln tonnes, soybean oil – from 3.2 to 4 mln tonnes, and the supply of sunflower oil will decrease from 3.55 to 2.85 mln tonnes. In August, the country reduced imports of edible oils compared to July by 17% to 1.53 million tons.

the December futures for soybean oil in Chicago for the week rose by 6.2% to 912 $/t (+2.5% for the month). Reduced processing has reduced the stocks of soybean oil, but increasing the supply of soybeans of the new harvest will restore processing volumes in September and reduce the price of soybean oil.

Export demand prices for sunflower oil with delivery to the Ukrainian ports of the black sea rose to 930-935 $/t, while for deliveries to Bulgaria and Poland remained at the level of 960-970 $/t.

According to the forecasts of Oil World, in 2024/25 MY the global exports of sunflower oil will decrease from 16.02 to 13.91 mln tonnes compared to the previous season, so the demand prices will increase, as well as the premium for this oil compared to palm and soybean oils.

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Tags: Ukraine, sunflower oil, Bulgaria, prices, Poland, Malaysia, palm oil