Plant oilseed quotes remain stable and do not react to falling oil prices and sales from Argentina

During the week, vegetable oil quotes remained stable, not reacting to large sales from Argentina, falling oil prices, and the start of holidays in China.

Argentina's significant sales of soybeans, soybean oil, and meal worth over $7 billion in two days have not yet had a significant impact on markets, although they are expected to significantly reduce demand.

December Brent crude futures fell 2.4% for the week under pressure from increased supply and falling demand for oil, which has had little impact on palm oil prices so far.

November palm oil futures on the Bursa Malaysia exchange were trading at 4,388 ringgit/t or $1,045/t during the week, down 1% after two months of price stability supported by strong demand from India. Surveyors estimated that Malaysian palm oil exports in September rose by 7.3-9.6% compared to August.

Analysts predict that in 2025/26 MY, India will increase imports of vegetable oils to a record level, but only due to increased palm oil supplies, while purchases of soybean and sunflower oil will decrease.

December soybean oil futures on the Chicago Board of Trade rose 1.2% to $1,112/tonne (-4% month-on-month) in response to the rapid closure of duty-free supplies from Argentina.

During the week, soybean oil prices in Brazil remained at $1,105-1,110/t FOB, and on the Chinese exchange in Dalian they decreased by $20/t to $1,145/t.

The holiday holidays in China from October 1 to 8 will further reduce demand for vegetable oils, especially against the backdrop of significant volumes of products purchased from Argentina.

Prices for sunflower oil for delivery to India in September-October remain at $1,275-1,288/t C&F, without pressure from supply from Argentina.

In Ukraine, demand prices for sunflower oil remain at a high level of $1,170-1,190/t with delivery to Black Sea ports due to rain-induced delays in sunflower harvesting and forecasts of a reduced harvest.

Demand prices for Russian oil increased by $10-15/t to $1,170-1,180/t FOB during the week amid delayed harvest and high demand from Turkey.

In the 2024/25 MY, Turkey more than halved its imports of Ukrainian sunflower oil compared to the previous season, to 311 thousand tons, under pressure from a significant supply of cheaper Russian oil.

In October, price pressure will increase due to large sunflower harvests in the Russian Federation and Kazakhstan, rapeseed in Canada, and soybeans in the United States, as well as falling demand from major importers who purchased significant volumes from Argentina.