Prices for palm and sunflower oil declined slightly, while soybean oil remained steadily low

Amid the beginning of the harvest of rapeseed in Europe and the expectation of increased supply of rapeseed oil from the new harvest, there is a decrease in demand from European biodiesel producers, which actively bought soybean and sunflower oil from Ukraine in may, which led to a sharp rise in prices.

During the past week, the demand prices for soybean and sunflower oil from Ukraine decreased by 20-30 $/t to 900-920 $/t with delivery to Poland and Bulgaria, which is also due to the depreciation of the euro against the dollar.

According to Trading Economics, the average price of sunflower oil for delivery to buyers for the week decreased by 1% to 933 $/t (+7.2% for the month), but the shortage of supply from Ukraine supports the quotes.

Over the past week, the August futures for palm oil on the Bursa exchange in Malaysia decreased by 1.2% to 3900 ringgit/t or 828 $/t under pressure from the slowdown in exports in June after may.
According to independent surveyors AmSpec Agri Malaysia and Intertek Testing Services, the export of Malaysian palm oil products for the period from 1 to 20 June fell by 8.1%-12.9% compared to the same period in May.

Additional pressure on the quotes is exerted by the decline in prices for soybean oil on the Dalian stock exchange by 0.99%, and for palm oil by 0.78% at the end of the week.

July futures for soybean oil in Chicago for the week rose 1% to 968 $/t (-2.4% for the month), receiving support from rising oil prices.

August futures for Brent crude oil on the London ICE Futures exchange for the week increased by 3.1% to 85.2 $/barrel (+3.9% for the month) due to increased risks of Israel’s war against Lebanon.

Rising oil prices will support vegetable oil prices in the near future.

Tags: soybean oil, prices, palm oil