Falling palm oil prices increase pressure on sunseed and sunflower oil prices in Ukraine

Published 2024년 12월 23일

Tridge summary

Palm oil prices have seen a significant drop of 9.6% in the last week, with a total loss of 15.6% over the past two weeks, due to a decrease in export demand, especially from Malaysia. This trend is expected to continue into the next 10 days due to the New Year holidays. Concurrently, soybean oil prices in Chicago have also declined by 7.8%. In contrast, sunflower oil prices in Ukraine and Eastern Europe remain high, with demand prices dropping to 1070-1150 $/t, due to market overcrowding and holiday factors. Sunseed prices in Ukraine have fallen due to decreasing oil prices, with farmers selling other crops as they anticipate market stabilization and increased sunseed supply. Ukroliyaprom, the Ukrainian oilseed association, has urged farmers to speed up sunflower oil sales, attributing the price increase to market factors rather than sunflower oil production. The association also expects global sunflower oil prices to adjust downwards, influenced by the increase in soybean crop sizes.

Disclaimer:The above summary was generated by Tridge's proprietary AI model for informational purposes.

Original content

Last week, prices for palm oil fell by 9.6%, and in total for two weeks lost 15.6% amid declining export demand. According to surveyors, Malaysia reduced exports of palm oil products by 7.6-8.3% in December 1-20 compared to the same period in November, and in the next 10 days it will decrease even more amid the New Year holidays. On the Bursa exchange on Friday, the February futures for palm oil fell by 1.6% to 4434 ringgit/t or 984 $/t (-9.6% for the week), and the benchmark contract for palm oil FCPO1 for delivery in March – by 1.64% or 74 ringgit/t to 4434 ringgit/t (983.24 $/t). Following them and against the background of favorable weather for soybean crops in Brazil, January futures for soybean oil in Chicago fell by 7.8% to 870 $/t (-8.9% for two weeks). According to Trading Economics, the average price of sunflower oil for delivery to buyers fell by 1.5% to 1261 $/t for the week (-3.6% for two weeks). the Number of proposals remains limited, as sellers are not willing to ...

Source: UkrAgroConsult