Rising oil prices support vegetable oil prices

Intensification of Israel’s military operation in the South of the Gaza Strip – in the city of Rafah and the clash between Egyptian and Israeli soldiers at the border post led to a rise in oil prices this week by 2.5%, which supported the vegetable oil markets.

July futures for Brent crude oil on the ICE Futures exchange in London rose by 2.5% to $84.2 per barrel in two sessions (+1.7% per week, -3.6% per month).

An Egyptian soldier was killed in a clash with Israeli troops at a border crossing in the Gaza Strip, which could escalate tensions between the two countries.

In Russia, some refineries have recovered from the UAV attacks, so oil refining in the first half of May increased by 4% to 5.45 million barrels per day compared to the same period in April, Bloomberg reports.

The markets are expecting a meeting of OPEC+ members on June 2, where they may agree to increase production volumes, as more and more countries insist.

July futures for palm oil on the Bursa exchange yesterday rose immediately by 2.3% to 3960 ringgit/t or $844/t (+2.3% for the week) amid rising prices for oil and soybean oil, as well as a slow increase in exports in May.

According to the surveyor Intertek Testing Services and inspection company AmSpec Agri Malaysia, Malaysia for 1-25 may increased exports of palm oil compared to the same period in April by 2.4-3.1%. At the same time, Indonesia exported 2.56 mln tonnes of palm oil in March, up 18% compared to February.

the July futures for soybean oil on the Chicago stock exchange yesterday rose 1.2% to 1000 $/t, but for the week decreased by 0.7% amid falling prices for soybeans and meal as the acceleration of harvesting in Argentina.

On the stock exchange in Dalian, the most active contract for soybean oil yesterday rose by 1.66%, and for palm oil – by 1.99%.

According to Trading Economics, the average price of sunflower oil for delivery to buyers for the week increased by 1.7% to 881 $/t (+1.7% for the month) amid declining supply from the black sea region and increased demand from India.

In Ukraine, the export price of demand for sunflower oil in the ports of the black sea increased by 20-30 $/t to 840-860 $/t due to the shortage of supply. However, significant stocks of oil in the EU in anticipation of the seasonal increase in the supply of rapeseed oil reduce the demand and prices for sunflower and soybean oil in Europe.

Tags: prices, India, Malaysia, palm oil, edible oils, Ukraine, sunflower oil, soybean oil, Indonesia, EU