Demand prices for soybean and sunflower oil from Ukraine decreased by $20-30 per ton

Published Jun 24, 2024

Tridge summary

The article highlights the dynamic market trends in agricultural and energy commodities, with a focus on rapeseed oil, biodiesel feedstocks, and vegetable oils like soybean and sunflower oil from Ukraine, as well as palm oil from Malaysia. It points out that the start of rapeseed harvest in Europe is expected to increase rapeseed oil supply, leading to a drop in demand from European biodiesel producers, resulting in reduced prices for soybean and sunflower oil from Ukraine. This situation is further influenced by the depreciation of the euro against the dollar. Additionally, the article notes a decrease in palm oil futures due to a slowdown in exports from Malaysia, alongside a slight increase in soybean and soybean oil prices, attributed to rising oil prices due to heightened Israel-Lebanon conflict risks. These market developments are discussed in the context of improving profitability of oil crops since 2024.

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

Original content

Against the background of the start of rapeseed harvesting in Europe and the expectation of an increase in the supply of rapeseed oil of the new crop, there is a decrease in demand from European biodiesel producers, who actively bought soybean and sunflower oil from Ukraine in May, which caused a sharp increase in prices. This is reported by analysts of the GrainTrade electronic grain exchange. During the past week, demand prices for soybean and sunflower oil from Ukraine decreased by 20-30 $/t to 900-920 $/t with delivery to Poland and Bulgaria, which is also related to the decrease in the exchange rate of the euro against the dollar. According to Trading Economics, the average price of sunflower oil with delivery to buyers for the week decreased by 1% to $933/t (+7.2% for the month), but the shortage of offers from Ukraine supports the quote. Over the past week, August palm oil futures on Malaysia's Bursa exchange fell 1.2% to 3,900 ringgit/t, or $828/t, under pressure from a ...

Source: Agrotimes