Reduced palm oil exports from Malaysia increase pressure on vegetable oil prices

After soybean oil prices fell by 10-12% during the month to $920-930/t, palm oil quotes remained at $1,020-1,030/t for some time, but the pressure on them increased due to a decrease in export rates and an increase in the base price of SRO in Malaysia in March. According to estimates by surveyor Intertek Testing Services (ITS), during March 1-15, Malaysia reduced palm oil exports compared to the same period in February by 10.6% from 422.4 to 381.8 thousand tons due to reduced demand from importers. The Malaysian authorities increased the base price of SRO for April by 3.6% to 4,547.79 ringgit/t, but the export duty rate remained at 10%. Against this backdrop, April palm oil futures on the Bursa Malaysia exchange fell 4.8% to 4,366 ringgit/t or $988/t on Monday (-3% for the week). Yesterday was a holiday in Malaysia, so today’s drop in quotes will increase pressure on sunflower oil prices, which remain the most expensive on the market. According to Trading Economics, the ...