Low palm oil prices are putting pressure on neighboring soybean and sunflower oil markets

The palm oil market remains highly volatile. Last week, quotes posted their biggest quarterly drop since 2008, falling to a one-year low amid rising inventories in major producing countries and possible reduced demand from the global economic downturn.

Malaysian palm oil futures, which measure global palm oil prices, fell 9.4% to 3,416 ringgit/t, or $738/t, last week, down 31% in the third quarter on expectations of a pick-up in exports from Indonesia and Malaysia, which is slowing global inflation due to lower food prices.

Soybean prices fell by 3.5% and soybean oil by 3.8%, according to the quarterly US grain stocks report, which will increase pressure on the prices of other vegetable oils.

November soybean futures on the Chicago Mercantile Exchange fell 3.8% to $1,355/t on Friday, losing 3.3% for the month.

In Ukraine, demand prices for sunflower oil remain at the level of $1,000/t FCA, $1,050/t - SRT-Black Sea ports, $1,100-1,150/t - with delivery to the ports of Varna.

The delay in harvesting sunflowers, in addition to the sharp reduction in production in the current season, supports the purchase prices of sunflowers, which does not allow lowering the prices of domestic sunflower oil.

However, sunflower oil prices for delivery to Turkey fell to $1,100-1,200/t against the backdrop of increased Russian oil supplies due to this year's record sunflower harvest.

November Brent crude oil futures remain at the level of $86/barrel, which limits the growth of prices for vegetable oils.