Global: Palm oil prices remain steady for third week in a row, while soybeans continue to fall

Published 2023년 11월 6일

Tridge summary

The global market is experiencing an increase in the supply of vegetable oils, leading to pressure on prices due to reduced demand from India and China. Lower oil prices and the stability of palm oil production in Malaysia are adding to the pressure on vegetable oil prices. Ukrainian exporters are trying to regain markets for sunflower oil that were captured by Russian sellers during the blockade of Black Sea ports, but low meal prices and a large global crop of corn and feed wheat are limiting gains in feed grain and meal prices.

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

Original content

A seasonal increase in the supply of vegetable oils in the global market is increasing the pressure on quotations, especially against the backdrop of reduced demand from India and China. India cut edible oil imports to a 16-month low in October as refiners cut purchases due to increased inventories. Lower risks of confrontation in the Middle East led to a 5% drop in oil prices, which increased pressure on vegetable oil prices. January palm oil futures on the Malaysian exchange traded near the 3,750 ringgit/t level for a third week and touched 3,768 ringgit/t or $795/t on Friday, putting pressure on higher soybean oil quotes. Low palm oil prices will restrain price growth in neighboring markets. December soybean oil futures in Chicago fell 9.8% to $1,088/t in three weeks (-11.8% for the month) amid increased arrivals of the new soybean crop in the US. Experts expect that in 2024, palm oil production in Malaysia will remain stable, and in Indonesia - will decrease by at least 1 ...

Source: Graintrade