Against the background of a 3.5% increase in oil prices, palm oil futures rose by 4.8%

Crude palm oil futures on the Malaysian exchange rose sharply yesterday amid a jump in oil prices and a possible delay in the entry into force of the EU's new Deforestation Regulation (EUDR), which requires companies supplying the EU with cocoa, coffee, palm oil , soy, cattle, rubber and wood, guarantees that the production is not related to deforestation, and the products are obtained from legal sources.

 

November Brent oil futures rose by 3.5% to $74/barrel after Iran fired missiles at Israel. Now waiting for a response to this attack will give quotes speculative support.

 

We will remind that Israel reacted to the April attack with a minor attack on Iranian facilities, but now it has promised to destroy Iran's oil terminals and nuclear facilities.

 

December palm oil futures on Bursa Malaysia rose 4.74% to 4,196 ringgit/t or $1,006.7/t yesterday, the biggest daily gain since July 3, 2023.

 

Indonesia raised the base price of palm oil for October from $839.53 to $893.64/t, so the export duty will rise to $74/t.

 

The ringgit exchange rate against the US dollar continues to fall, which increases the competitiveness of palm oil in the market.

 

In September, Malaysia's palm oil product exports increased by 0.8%, according to surveyor ITS, and by 1.1%, according to AmSpec Agri, and the market is now awaiting official September production and export data, which could have a significant impact on quotes.

 

India's sharp cut in vegetable oil imports in September to 1.06 million tonnes and a week of holidays in China will dampen exports in the near term, but the market expects a pick-up in supplies after the holidays.

 

December soybean oil futures in Chicago rose 2.8% to $960/t from Monday (-1.1% for the week, +6.3% for the month) amid delays in soybean planting in Brazil.

 

In Ukraine, export demand prices for sunflower oil remain stable at $970-990/t with delivery to Black Sea ports and $980-1020/t with delivery to Poland and Bulgaria, and sellers are forced to raise oil prices against the backdrop of rising sunflower prices.

 

At the same time, demand prices for sunflower oil from Kazakhstan and the Russian Federation remain at the level of $960-970/t, so Ukrainian oil prices are supported only by increased demand from the EU.