Vegetable oil prices rose amid easing pressure from cheap palm oil

ncertainty remains in global vegetable oil markets, driven on the one hand by falling oil prices and low demand from China, where lockdowns are ongoing, and on the other hand by the gradual easing of pressure from surpluses of cheap palm oil from Indonesia, which supports neighboring soybean and sunflower oil markets. .

Over the past two sessions, September palm oil futures on the Malaysian exchange rose 6.5% to 4,071 ringgit/t, or $914/t, paring last week’s decline and adding 7.5% to the price in two weeks overall. Prices are rising in anticipation of an updated supply and demand report from the Malaysian Palm Oil Board (PMOB) due on August 10, as well as Indonesia’s change in export duty.

USDA experts have lowered their 2021/22 FY 2021/22 Indonesian palm oil export forecast to 25.5 million t due to lower exports in May and June, but left their 2022/23 FY 2022/23 production forecast at 46 million t, which will exceed 45.3 million t. of the 2021/22 season.

On the stock exchange in Dalian, palm oil futures rose by 6.1% and soy futures by 3.8% yesterday, which supported the market.

September soybean oil futures in Chicago over the past two sessions rose 4.8% to $1,440/t on expectations of a pick-up in oil demand following the adoption of a new US environmental law that strengthens support for alternative energy sources. Also, the quotation supported the decrease in forecasts of the soybean harvest in the USA.

Against the backdrop of rapid growth in neighboring markets, prices for Ukrainian sunflower oil rose to $1,000-1,050/ton FCA plant. Demand for oil also rose, especially after reduced offers from sellers who expect exports from Black Sea ports to resume after the first sunflower oil ship since February 24 left Chornomorsk port yesterday.

The forecasted abundant rainfall this week will improve the prospects of the sunflower harvest in Ukraine and the Russian Federation, but will not significantly affect the balances of the USDA, which will be published on Friday.

Tags: Ukraine, China, sunflower oil, soybean oil, Indonesia, prices, soybean, Malaysia, palm oil, USA