Yesterday's 2.4% drop in palm oil prices could lead to lower sunflower oil prices

Published Apr 29, 2025

Tridge summary

Malaysia's July palm oil futures experienced a 2.37% decrease, dropping to 3,961 ringgit/t or $908.5/t, due to a decline in oil and vegetable oil prices in China. Despite a growth in production, the pace of palm oil exports from Malaysia is slowing down, leading to an anticipated increase in inventories by the end of April. Meanwhile, Brent crude futures also fell due to uncertain US-China talks. Chicago's July soybean oil futures saw a 1.4% rise, reaching their highest level since late 2023, driven by speculative expectations of increased processing in the new season. However, the market is heavily overbought, and prices could significantly drop with a successful sowing or news of biodesel production in the US. Ukrainian export prices for sunflower oil remain stable, but demand is decreasing as argentine oil enters the market, leading to lower bid prices and forecasts of a record sunflower harvest.

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

Original content

July palm oil futures on the Bursa exchange in Malaysia fell 2.37% to 3,961 ringgit/t or $908.5/t yesterday, amid falling oil and vegetable oil prices in China, where the Dalian soybean oil contract fell 1.54% and the SPO1 palm oil contract fell 2.15%. The pace of palm oil exports from Malaysia continues to slow, although production is growing, so analysts expect an increase in inventories at the end of April. According to surveyors, during April 1-25, oil exports increased by 13.8-14.8% compared with the corresponding period in March. July Brent crude futures fell 1.1% to $64.9/barrel yesterday (-14.8% month-on-month) under pressure from the still-inconclusive talks between the US and China, which are holding back global economic growth and fuel demand. July soybean oil futures in Chicago rose another 1.4% yesterday to their highest level since late 2023 at $1,112/t (+4.5% week-on-week, +11% month-on-month) on speculative expectations of increased processing in the new season. ...

Source: Graintrade