Global: A 9% drop in palm oil and a 3.6% drop in soybean oil prices for the week will increase pressure on sunflower oil prices

RBD Palm Oil
United States
Published Apr 23, 2024

Tridge summary

This week saw a 3.7% drop in oil prices, impacting the already overbought palm oil market and potentially increasing its competitiveness against soybean oil, especially in India which is importing more sunflower oil. Speculators are adjusting their positions due to possible tensions between Israel and Iran, while the US Congress's aid to Ukraine and Israel aims to counteract Iran and Russia's disruptive actions. The commodities market has observed a decline in palm oil, soybean oil, and sunflower oil prices, with India altering its import patterns to favor sunflower oil over palm and soybean oils. Russia's attacks on Ukrainian oil plants are seen as efforts to control the sunflower oil market, reminiscent of its previous conflicts over gas with Europe and grain with Ukraine.
Disclaimer: The above summary was generated by Tridge's proprietary AI model for informational purposes.

Original content

A 3.7% drop in oil prices for the week added pressure on palm oil prices, which were heavily overbought. Lower prices for palm oil will allow it to compete with soybean oil and strengthen its position in the Indian market, which is increasing imports of sunflower oil. Speculators are closing short positions in oil and palm oil that they opened on expectations of an escalation in the Middle East that could end in a full-scale war between Israel and Iran. Brent June futures on the London-based ICE Futures exchange fell 3.7% to $87.4/barrel (+2.8% on the month) for the week and could fall further if Iran does not escalate the situation. The decision of the US Congress to allocate aid to Ukraine and Israel will make Iran and the Russian Federation understand that Western countries will not allow them to violate the world order with impunity. June palm oil futures on Bursa Malaysia fell 9% for the week to 3,926 ringgit/t, or $821/t (-10.6% for two weeks), amid slower exports and lower ...
Source: Graintrade
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