Quotes for sunflower oil continue to grow actively

In the world market is increasing the supply of vegetable oils, which restrains the growth of prices for palm and soybean oil, despite the continued speculative growth of prices for sunflower oil.

the July futures for palm oil on the Bursa exchange in Malaysia for the week decreased by 1% to 3936 ringgit/t or 834 $/t and generally remain stable for almost two months amid rising production and declining exports. According to Oil World, in May, Malaysia increased palm oil production by 13.5% compared to the previous month to 1.75 mln tonnes, which is also 12.3% higher than in the same period of 2023 (1.52 mln tonnes).

High production and falling prices for the product in the first half of May also allowed the country to increase oil exports to 1.38 mln tonnes compared to 1.08 mln tonnes in May 2023.

Thus, since the beginning of 2024, Malaysia has produced 7.26 mln tonnes of palm oil (6.64 mln tonnes in January-May 2023) and exported 6.31 mln tonnes (5.92 mln tonnes).

Palm oil reserves in the country as of the end of May were estimated at 1.75 mln tons (1.69 mln tons a year earlier).

According to Oil World estimates, Indonesia has exported 7.58 mln tonnes of palm oil since the beginning of 2024 (January-April), which is significantly lower than the figure for the same period of the previous year (8.37 mln tonnes). The slower exports are due to a decrease in production due to a shortage of precipitation in the oil palm growing regions.

July futures for soybean oil in Chicago for the week remained virtually unchanged and traded at 963 $/t, but during the month decreased by 4.1% due to the completion of the collection in Brazil and Argentina and good sowing conditions in the United States.

According to Trading Economics, the average price of sunflower oil for delivery to buyers for the week increased by 2.5% to 943 $/t, increasing by 10.8% for the month amid declining supply from Ukraine and rising demand from importers from India and the EU.

the Last tender in Egypt showed that the price of soybean oil remain at the same level, and the number of proposals for the supply increased, which limits the growth of prices for sunflower oil.

In the June FAS report, USDA slightly lowered the forecast of global vegetable oil production in 2024/25 MY by 0.39 mln tonnes to 227.89 mln tonnes, which is still 1.9% higher than in 2023/24 MY (223.8 mln tonnes in 2022/23 MY and 218.33 mln tonnes in 2021/22 MY), due to the lower forecast of rapeseed oil production by 0.34 mln tonnes to 33.68 mln tonnes against 33.97 mln tonnes in the previous season.

The forecast of global consumption of vegetable oils in 2024/25 MY is slightly decreased by 0.06 mln tonnes to 224.84 mln tonnes (218.82; 211.2 and 202.8 mln tonnes), which will lead to a slight decrease in the forecast of global ending stocks of oilseeds in 2024/25 MY by 0.11 mln tonnes to 29.8 mln tonnes, down 6.5% compared to the current season (31.74 mln tonnes, 29.9 mln tonnes and 29.59 mln tonnes) due to the reduction of palm and rapeseed oil stocks.

Tags: Ukraine, sunflower oil, prices