Rising oil prices and import rates to India are supporting vegetable oil quotes

Since Monday, February Brent crude futures have risen 8.8% to $82.7/barrel amid speculative buying triggered by a sharp 14.5% price collapse at the start of the month, as well as the shutdown of a major oil pipeline between Canada and USA. This helped vegetable oil prices to recover after falling.

February palm oil futures on Bursa Malaysia tumbled 6.36% on Monday, but by Wednesday had recovered to the previous week’s level of 3,946 ringgit/t, or $895/t, on data of lower-than-expected palm oil inventories in country.

Malaysia’s palm oil stocks fell for the first time in six months in November, falling 5% from October to 2.29 million tonnes amid a 7.33% drop in production to 1.68, according to the Palm Oil Board (МPOB). million tons and export growth by 0.92% to 1.52 million tons.

Chicago January soybean oil futures rose 5.9% to $1,400/t since Monday amid strong demand for soybeans and soybean meal, after falling last week to the lowest level since July at $1,322/t.

According to the Vegetable Oil Industry Association of India (SEA), in November, compared to October, the country increased its import of vegetable oils by 11% to 1.55 million tons, in particular palm oil – by 29% to 1.14 million tons, sunflower oil – by 9 % to 0.16 million tons, while soybean imports decreased by 31% to 0.23 million tons.

Purchase prices for Ukrainian sunflower oil remain at a low level of $1,000-1,050/t delivered to the port, $1,120/t DAP Poland and $1,150-1,200 DAP Bulgaria. There is still a shortage of offers on the market, as most factories have not resumed work due to power outages.