Prices of oilseeds and vegetable oils in Europe are falling

Published Nov 23, 2022

Tridge summary

Over the past two weeks, vegetable oil and oilseed prices have been affected by the drop in oil prices (down 9.7-11%) amid a slowdown in the global economy and stagnant demand for vegetable oils and oilseeds in China due to new outbreaks of the coronavirus infection. Last week's drastic drop in the price of palm oil is noticeable, which is explained by its closer relationship with the price of oil. December palm oil futures on the Malaysian exchange fell 11.3% to RM3,850/t or $846/t in the past week (-13.4% for the month). Meanwhile, December soybean oil futures in Chicago fell 6% last week to $1,600/t.

Original content

Analysts from the industry's most authoritative German analytical publication "Oil World" in their weekly report also emphasize the increased export of sunflower and sunflower oil from Ukraine, which depresses European quotations. The price of crude sunflower oil on the Rotterdam market during the two-week period fell by an average of nearly $100 to $1,310-1,315/t. However, a number of European experts warn that the continuation of this trend is questionable given the problems of manufacturers in Ukraine, where some factories are forced to interrupt the production process due to a power outage in entire regions. Meanwhile, the price of sunflower seed on the French market in the last two-three week period fell by EUR 90, from EUR 740.00/t to EUR650.00/t CPT St Nazaire. Ukrainian trade sources indicate that Ukrainian sunflower oil demand prices for delivery to Bulgaria last week remained at $1,240-1,250 /t DAP, and oil buyers' prices at the border with Poland are in the range of ...

Source: Sinor