The vegetable oil markets hardest hit by falling oil prices

the Confrontation between Russia and Saudi Arabia on the world oil market led to the collapse in oil prices to 10-year low, which immediately reflected on the quotations of palm oil, most of which is used for the production of biofuels, for which its cost is very depend on oil prices.

During Friday-Monday, oil prices fell by 36% in palm oil in Malaysia with 8.2 per cent to 5-month low of 2332 Ringgits/t or 553 $/t, though during the session they fell to 2200 ringgit/MT or $526/t

May futures for soybean oil in the USA following the prices for palm oil Monday dropped by 8.9%, the lowest since June 2019 level 597 $/MT, but then rebounded to 615 $/MT, marking a drop from 4.6%.

the April futures for canola oil in the Netherlands fell by 20 €/t to the lowest since July last year 750 €/t FOB, while shipments in may-July, prices decreased to 733 €/t FOB.

Cheaper vegetable oils will lead to falling prices for soy, rapeseed and sunflower, and the uncertainty of the impact of the epidemic coronavirus on consumption for a long period of time will curb global demand and significantly reduce trading volumes.

After the long weekend in Russia and Ukraine, the markets will remain under pressure from lower prices for palm and soybean oil, which will lead to decrease of quotations for sunflower oil and seeds, which fell sharply in the last week.