Thin demand keeps Latin American soybean oil at more than two-year lows

Published May 30, 2023

Tridge summary

Cash prices for South American FOB soybean oil cargoes have reached more than two-year lows, with overseas demand remaining low due to competing edible oils offering a discount. The Argentinian FOB Up River and Brazilian FOB Paranaguá prices for July have dropped by over $1,000/mt since their historical highs in April 2022. This is due to high demand for Black Sea sunflower oil and a strong supply of rapeseed oil from Russia, Europe, and the UAE. Despite severe crop losses in Argentina, the international price movement in vegetable oils continues to decline. Argentinian soybean output is expected to be 21 million mt, down from 50 million mt, and Brazil's 2023 soybean oil exports are projected to drop to 2.15 million mt from 2.59 million mt.

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

Original content

Cash prices for South American FOB soybean oil cargoes have been hovering at more than two-year lows, with overseas demand still not picking up as competing edible oils have been posting an attractive discount, market sources told S&P Global Commodity Insights. On May 24, Platts assessed the Argentinian FOB Up River and the Brazilian FOB Paranaguá prices for July dates at $881.85/mt, nearing lows not seen since October 2020 for a front-month loading. Both price assessments have dropped by more $1,000/mt since historical highs reached in April 2022. “Soybean oil is unable to attract much fresh buying as Black Sea sunflower oil prices are at a considerable discount and have a strong supply – Russia – at the moment,” said Anilkumar Bagani, commodity research head at edible oil brokerage Sunvin Group. Indeed, FOB Black Sea sunflower outright prices on May 24 were at a $150/mt discount to the South American FOB soybean oil values, Platts data showed. The product from Argentina and ...

Source: UkrAgroConsult