Sharp rise in price of soybean oil in Chicago supported prices for other vegetable oils

This week, the August futures for soybean oil on the Chicago stock exchange rose by 6.8% to the highest since April at 1035 $/t amid increased use of soybean oil in the production of biodiesel in the United States and rising oil prices.

According to the USDA, in may, the volume of soybean processing in the United States increased in comparison with April by 7.9% to 5.23 million tons.

September futures for Brent crude oil on the ICE Futures exchange in London amid improving economic data in the United States and possible escalation between Lebanon and Israel during the month rose 10% to 86.3 $/barrel (+2.1% per week), which is the highest value since the end of April.

The quotes are supported by the expected increase in demand for oil and fuel due to increased travel by Americans on Independence Day. In addition, the strengthening to Category 5 of Hurricane Beryl, which has been forming in the Atlantic since the beginning of the year, could lead to a reduction in US oil production.

It should be borne in mind that Russia continues to increase oil production, and in May increased it to 9.39 million barrels per day, which is 3.8% higher than the agreed target of 9.049 million barrels per day. In addition, in June 24-30, oil exports from Russia increased by 620 thousand barrels/day to a 2-month high of 3.67 million barrels/day, which will increase pressure on prices in the near future.

August futures for palm oil on the Bursa exchange amid rising prices for oil and soybean oil, as well as forecasts of a reduction in the harvest in June also rose during the week by 6% to 4089 ringgit/t or 867 $/t (+2.7% for the month).

According to the surveyor AmSpec Agri Malaysia, Malaysia in June reduced the export of palm oil compared to may by 15.4%, but the market is waiting for official data on production, exports and stocks.

On the Dalian stock exchange, the most active contract for soybean oil rose by 2.1% yesterday, and for palm oil – by 2.75%.

According to Trading Economics, the average price for sunflower oil for delivery to buyers remains at the level of last month at 930 $/t, as the supply of rapeseed oil on the EU market has increased significantly.

Tags: soybean oil, prices