Global: Fall in oil and soybean oil prices has not yet affected palm and sunflower oil prices

Published 2024년 5월 3일

Tridge summary

Recent developments in the agricultural market have seen a decline in crude oil and soybean oil prices, with a notable exception in palm and sunflower oil prices, which have remained stable despite the trend. This resilience is attributed to an increase in physical demand for these oils. Malaysia has experienced a surge in crude palm oil production and exports, while India, the world's largest buyer of vegetable oils, has adjusted its import and export activities. In contrast, Argentina's delay in soybean harvest is disrupting supply chains, favoring EU sunflower and canola oil sellers. Ukraine has capitalized on this situation, seeing a significant growth in sunflower oil exports. This growth is part of a larger trend, with Ukraine's sunflower oil exports reaching high levels in the 2023/24 marketing year, despite a slight dip in exports from Indonesia due to competition from other vegetable oils.

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

Original content

This week's 5.4% drop in crude oil prices and 5.3% drop in Chicago soybean oil prices have so far not affected palm and sunflower oil prices, which are supported by a pick-up in physical demand. June Brent oil futures on London's ICE Futures exchange fell 4.7% to $83.8/barrel for the week, and July soybean oil futures on the Chicago Stock Exchange fell 5.2% to $952/barrel. t. A report from the Malaysian Palm Oil Board was more upbeat than traders had expected, with June palm oil futures on Bursa Malaysia falling just 0.8% for the week to RM3,844/t, or $809/t, while the market had expected their sharp decline following oil prices. In March, crude palm oil production in Malaysia increased by 10.57% compared to February to 1.39 million tons, and exports (including to India) by 28.61% to 1.32 million tons, as a result of which stocks decreased by 10.68% to the 10-month low of 1.71 million tons. The world's largest buyer of vegetable oils, India, in April increased palm oil imports ...

Source: UkrAgroConsult