Rising demand for palm oil will support the export value of all major oils on the world market
High demand for palm oil on the world market, caused by the return of a fair price spread in relation to competitive oils (primarily soybean), will provide additional support not only to export quotations for the tropical product itself, but also for the main competing oils.
At the same time, the decline in export prices for this type of oil will be limited, despite the expected recovery of reserves and production in Southeast Asia, since its current cost on the world market is the most attractive in comparison with other oils, experts note. According to surveyors, in May of this year, Malaysia increased palm oil exports by 13-18% compared to the previous month, which reflects the growing dynamics of interest in the product from key buyers.
As specified in the review, special attention should be paid to the recent decision of India, a key global buyer of vegetable oils, to reduce import duties on crude palm oil, as well as unrefined soybean and sunflower oils from the previous 27.5% to the current 16.5% in order to support the local processing sector. In connection with this decision, India may switch to purchasing palm oil in the near future, bringing its import volumes in June-July to 750-850 thousand tons.
“As a result, high import demand for palm oil may have an early impact on the restoration of production in Malaysia and Indonesia, which will accordingly be reflected in the pricing of soybean and sunflower oils, forming an important support factor for them in their export value,” the experts summarize.
According to OleoScope, on 06/09/2025, the price of RBD palm oil (Daylian) for June delivery was $1,197.74 per tonne, which is $1.40 per tonne higher than the previous value of 06/06/2025 ($1,196.34 per tonne). The price of sunflower oil (CIF Mumbai) for June delivery was $1,203.95 per tonne, which is $9.95 per tonne higher than the previous value of 06/06/2025 ($1,194.00 per tonne). This is the maximum price value for the week.
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