Soybean oil quotes in Chicago continue to rise, while prices for other vegetable oils remain stable

Vegetable oil markets are entering a season of increased supply of new crop soybean and rapeseed oil, so buyers are mostly taking a wait-and-see approach, especially against the backdrop of falling oil prices. Brazil and Argentina are increasing supplies of soybean oil, while Malaysia and Indonesia are actively selling the cheapest palm oil on the market.

July Brent crude futures fell 1.2% to $95/barrel during the week, losing 13% over the month, but rose again on Monday amid further complications in negotiations between the US and Iran.

July soybean oil futures on the Chicago SWOT rose by 6.2% during the week to $1,740/t (+3.3% per month, +65% per year), but this had almost no effect on the prices of other vegetable oils due to the limited US market for imports.

July palm oil futures on the Bursa Malaysia exchange were trading at 4,505 ringgit/t or $1,136/t during the week, but June 1-2 were a holiday in the country and no trading was held.

At the same time, soybean oil prices in Daylian (China) for delivery in June increased by $15-20/t to $1,260/t in a week, while on the spot market, soybean oil prices in Brazil increased by $30-40/t to $1,300-1,340/t FOB, and in Argentina - by $20-30/t to $1,250-1,280/t FOB.

Soybean oil prices in Europe also remain at $1,300-1,310/t FOB Rotterdam, limiting the rise in prices for sunflower oil, which is offered at $1,500/t FOB Rotterdam.

Last week, sunflower oil demand prices in India remained at $1,400-1,410/t CIF Mumbai, but Russian sunflower oil prices rose by $10/t to $1,300/t FOB, while Argentine oil prices remained at $1,290-1,340/t FOB depending on delivery conditions.

Demand prices for Ukrainian sunflower oil delivered to Black Sea ports increased by $5/t to $1,330-1,335/t in a week due to reduced supply, as more and more plants shut down due to a lack of raw materials and preparations for the rapeseed receiving season.

In May, Ukraine exported 400 thousand tons of sunflower oil, of which 72.7 thousand tons went to Spain, 61.1 thousand tons to India, 42.7 thousand tons to Italy, 34.3 thousand tons to Iraq, 27.7 thousand tons to the Netherlands, 18.7 thousand tons to France, and 18.3 thousand tons to Saudi Arabia.

During September-April 2025/26 MY, Argentina exported a record 530 thousand tons of sunflower oil to India, for the first time in history ahead of Ukraine in this direction, which supplied only 344 thousand tons. Therefore, in the new season, it will be more difficult for Ukraine to find buyers and compete not only with Russian, but also with Argentine oil.

The supply of sunflower oil in Ukraine is decreasing, as a limited number of plants continue to process sunflower, and a significant number of enterprises have begun prevention and preparation for the new rapeseed season.