Sunflower oil prices remain under pressure from lower palm and soybean oil prices

The approaching harvest of soybeans in South America increases the pressure on the prices of soybean oil, which remains the most expensive on the world market. However, the quote is supported by the weather and uncertainty with the soybean crop in Argentina, where thanks to the rains in December, 82% of the planned area was planted with soybeans (94% last year and 93% in the 5-year average), and 62% of the crops are in good or satisfactory condition.

In addition, sunflower harvest has begun in Argentina and 6% of the area has been threshed at the beginning of the year (5% last year and 11% 5-year average), with 78% of the crop in good or satisfactory condition, compared to 93% last year.

March soybean futures on the Chicago Mercantile Exchange fell 0.9% to $1,396/t since early January, but rose 3% for the month amid speculative demand fueled by drought in Argentina.

March palm oil futures on the Malaysian exchange yesterday fell 0.96% or 39 ringgit/t to an 11-day low of 4,013 ringgit/t or $918/t on expectations of the report data, where traders estimated there could be lower export figures and higher estimates of palm oil reserves in Malaysia.

According to the Trading Economics platform, demand prices for sunflower oil with delivery to customers in December decreased from $1,350 to $1,245/t CIF amid increased supplies from Ukraine and the Russian Federation. EU demand prices also fell to $1,120/t DAP Poland, $1,150/t DAP Bulgaria, $1,250/t DAP Italy due to reduced demand from biodiesel producers amid lower oil and rapeseed oil prices.

Russian Urals oil is currently trading at $37.8/barrel, which is half the price of global Brent oil ($78.6/barrel) and well below the $60/barrel ceiling price set by the G7 countries. The lack of buyers for “bloody” Russian oil will keep quotations at low levels in the near future, which will negatively affect the prices of vegetable oils.

Tags: Аргентина, sunflower oil, soybean oil, EU, prices, Malaysia, palm oil