Rising oil prices support the prices of vegetable oils

The intensification of Israel's military operation in the southern Gaza Strip city of Rafah and a clash between Egyptian and Israeli soldiers at a border post sent oil prices up 2.5% this week, supporting vegetable oil markets.

 

July Brent oil futures on the ICE Futures exchange in London rose by 2.5% to $84.2/barrel in two sessions (+1.7% for the week, -3.6% for the month).

 

An Egyptian soldier was killed in a clash with Israeli troops at a border crossing in the Gaza Strip, which may increase the escalation between the countries.

 

In the Russian Federation, part of the refinery recovered after the UAV attacks, so oil processing in the first half of May increased compared to the corresponding period in April by 4% to 5.45 million barrels/day, Bloomberg reports.

 

Markets are waiting for a meeting of OPEC+ members on June 2, at which they can agree to increase production volumes, which more and more countries are insisting on.

 

July palm oil futures on Bursa yesterday rose immediately 2.3% to 3,960 ringgit/t or $844/t (+2.3% on the week) on the back of higher oil and soybean oil prices and slower increase in exports in May.

 

According to surveyor Intertek Testing Services and inspection company AmSpec Agri Malaysia, Malaysia increased its palm oil exports from May 1-25 by 2.4-3.1% compared to the same period in April. At the same time, Indonesia exported 2.56 million tons of palm oil in March, which is 18% higher than in February.

 

July soybean oil futures on the Chicago Stock Exchange rose 1.2% to $1,000/t yesterday, but were down 0.7% for the week amid falling soybean and meal prices as harvesting in Argentina accelerated.

 

On the Dalyan exchange, the most active contract for soybean oil rose by 1.66% yesterday, and for palm oil - by 1.99%.

 

According to Trading Economics, the average price of sunflower oil delivered to buyers for the week increased by 1.7% to $881/t (+1.7% for the month) amid reduced supply from the Black Sea region and stronger demand from India.

 

In Ukraine, the export demand prices for sunflower oil in the Black Sea ports increased by $20-30/t to $840-860/t due to a shortage of offers. However, large oil stocks in the EU ahead of a seasonal increase in canola oil supplies are reducing demand and prices for sunflower and soybean oil in Europe.