The rise in palm oil prices to a 27-month high is supporting the prices of other vegetable oils

Caused by forecasts of production cuts, the growth of palm oil prices to 2-year highs supports prices for sunflower and soybean oil.

December futures for palm oil on the Bursa exchange in Malaysia yesterday rose another 2.2% to a 27-month high of 4486 ringgit/t or 1032 $/t (+5.4% since the beginning of the week) on forecasts of reduced production in Malaysia and Indonesia, the expected increase in exports in October – November, and increasing domestic consumption in Indonesia, where from January 1, 2025, the mandate B40 on the mixing of 40% biofuels in fuel.

The Malaysian authorities are raising the maximum duty rate on crude palm oil exports worth more than RM4,050/t to 10% starting November 1.

According to Intertek Testing Services, Indonesia in September reduced in comparison with August the export of palm oil by 24.8% from 2.38 to 1.79 million tons due to the reduction of imports of this oil by India by 33% to a 6-month low of 527,314 thousand tons.

On the stock exchange in Dalian, the most active contract for soybean oil yesterday rose by 2.47%, and for palm oil – by 3.48%.

December futures for soybean oil on the Chicago stock exchange yesterday fell 0.7% to 956 $/t amid profit-taking after a rapid rise of 4.5% in two sessions.

In Ukraine, the export purchase price of sunflower oil increased in ports to 1080-1100 $/t, but refiners are holding back sales of oil, as the processing margin is falling, and sunflower prices continue to rise due to limited supply. Farmers are holding back the sale of sunflower in anticipation of rising prices, as they have sufficient working capital through the sale of canola and wheat at high prices.

The depreciation of the euro against the dollar by 3.7% over two months lowers prices for supplies to European consumers, who were the main buyers of Ukrainian sunflower oil.

According to Trading Economics, the average price of sunflower oil for delivery to buyers increased by 6% to 1228 $/t during the month.

Data on imports of vegetable oils by India in October will show whether importers are ready to buy oils amid rising prices caused by the increase in import duties by 30%.

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Tags: sunflower oil, prices, palm oil