Global: Vegetable oil quotes are recovering amid rising oil prices and pace of imports into India

Published Dec 15, 2022

Tridge summary

Brent crude futures have seen a significant increase of 8.8% since Monday, following a large price drop and the shutdown of a major oil pipeline, leading to a recovery in vegetable oil prices. Palm oil futures in Malaysia experienced a dip but recovered due to lower than expected inventories. Malaysia's palm oil stocks saw a decrease for the first time in six months in November. Chicago's January soybean oil futures also rose due to strong demand. India increased its import of vegetable oils by 11% in November, especially palm oil. The purchase prices for Ukrainian sunflower oil remain low due to a lack of offers on the market, as many factories are not in operation due to power outages.

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

Original content

Since Monday, February Brent crude futures have risen 8.8% to $82.7/barrel amid speculative buying triggered by a sharp 14.5% price collapse at the start of the month, as well as the shutdown of a major oil pipeline between Canada and USA. This helped vegetable oil prices to recover after falling. February palm oil futures on Bursa Malaysia tumbled 6.36% on Monday, but by Wednesday had recovered to the previous week's level of 3,946 ringgit/t, or $895/t, on data of lower-than-expected palm oil inventories in country. Malaysia's palm oil stocks fell for the first time in six months in November, falling 5% from October to 2.29 million tonnes amid a 7.33% drop in production to 1.68, according to the Palm Oil Board (PAB). million tons and export growth by 0.92% to 1.52 million tons. January soybean oil futures in Chicago rose 5.9% to $1,400/t since Monday amid strong demand for soybeans and soybean meal, after falling last week to the lowest level since July at $1,322/t. According to ...

Source: Graintrade