Palm oil quotes fell amid a 3% fall in soybean oil prices

Accelerating soybean harvest in Brazil and increased soybean production forecasts in Argentina are adding pressure to soybean and oil quotes.

The increase in oil prices during the week by 5% did not support quotations of vegetable oils, as against the background of increased supply, demand remains very weak.

March soybean oil futures on the Chicago Stock Exchange yesterday fell by 3% to $1,003/t (-6% for the month, -32% for the year).

March palm oil futures on Bursa Malaysia fell 1.7% to RM3,948/t or $833/t yesterday (+1.2% for the week, +5.7% for the two weeks) on Bursa Malaysia ) against the background of fixed profits and falling soybean oil prices.

A seasonal drop in palm oil production in January led to reduced supply, although Malaysia plans to increase oil production by 1% to 18.75 million tonnes in 2024. However, oil stocks at the end of January will not increase as the pace of its exports has also slowed.

In the spring, production volumes will increase, but exports may remain low, given the sharp drop in soybean oil prices.

Yesterday, the most active soybean oil contract fell by 1.8% on the Dalian stock exchange, and palm oil fell by 0.8%.

Demand prices for sunflower oil with delivery to buyers remain at $845/t. In Ukraine, prices for sunflower oil with delivery to Black Sea ports are $750-770/t, with delivery to Bulgaria they have fallen to $820-830/t, and to Italy - to $850-860/t.

Oil prices rose yesterday amid an attack on a US base in Jordan that killed three soldiers. This could increase the escalation in the Middle East and lead to interruptions in the supply of oil to the world market.