Prices of oilseeds and vegetable oils in Europe are falling

Published 2022년 11월 22일

Tridge summary

Over the past two weeks, the global market has seen a significant drop in vegetable oil and oilseed prices, with palm oil experiencing the most notable decline due to falling oil prices and stagnant demand, particularly in China. This trend is expected to continue, but the sustainability of the trend is questionable due to production issues in Ukraine. The price of crude sunflower oil and sunflower seeds on the French market have also seen a decrease. The global production of major oilseeds is projected to surpass demand, leading to a surplus. This surplus, along with the recovery of Canadian production, has been highlighted by the USDA's Foreign Market Service.

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

Original content

Over the past two weeks, vegetable oil and oilseed prices have been affected by the drop in oil prices (down 9.7-11%) amid a slowdown in the global economy and stagnant demand for vegetable oils and oilseeds in China due to new outbreaks of the coronavirus infection. Last week's drastic drop in the price of palm oil is noticeable, which is explained by its closer relationship with the price of oil. December palm oil futures on the Malaysian exchange fell 11.3% to RM3,850/t or $846/t in the past week (-13.4% for the month). Meanwhile, December soybean oil futures in Chicago fell 6% last week to $1,600/t. Analysts from the industry's most authoritative German analytical publication "Oil World" in their weekly report also emphasize the increased export of sunflower and sunflower oil from Ukraine, which depresses European quotations. The price of crude sunflower oil on the Rotterdam market during the two-week period fell by an average of nearly $100 to $1,310-1,315/t. However, a ...

Source: Sinor