World: Lower soybean and sunflower oil prices are putting pressure on palm oil prices

Published Dec 27, 2023

Tridge summary

Increased supplies of sunflower and soybean oil from Ukraine, Russia, Brazil, and Argentina are putting pressure on palm oil prices, leading to a decrease in demand prices for Ukrainian sunflower oil and a sharp drop in world demand prices. The drop in prices is attributed to lower soybean oil quotations in Chicago and better weather in Argentina and Brazil, as well as lower production and export pace in Malaysia. Despite geopolitical support for oil prices, fuel demand is not predicted to increase, and oil consumption in Europe is expected to decrease to a 50-year low due to the rapid transition to the use of electric vehicles. Sunflower purchase prices in Ukraine have risen as processors stockpile raw materials for January, and farmers are holding back sales in anticipation of increased demand and prices.

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

Original content

Increasing supplies of sunflower oil from Ukraine and the Russian Federation and soybean oil from Brazil and Argentina to the world market are increasing the pressure on palm oil prices, which have remained stable against the background of high oil prices. The export of sunflower oil from Ukraine in November grew by 32% compared to October to 538,000 tons, and in total in 2023/24 MR reached 1.3 million tons, while last year during this period 1.44 million tons were shipped. Demand prices for Ukrainian sunflower oil in December fell by $30-40/t to $720-730/t DAP - Danube ports and $710-730/t DAP - Black Sea ports against the background of increased supplies and falling prices in China and Turkey . World demand prices for sunflower oil with delivery to customers in two weeks decreased by 5.9% to $845/t. The reason for the sharp drop in prices was a decline in quotations for soybean oil in Chicago, where January futures during the week were cheaper by 5.8% to $1,055/t (-6.9% for the ...

Source: Graintrade