The rise in palm oil prices to a 27-month high is supporting the prices of other vegetable oils

Forecasts of a cut in production caused palm oil prices to rise to a 2-year high, supporting sunflower and soybean oil prices.

December palm oil futures on Bursa Malaysia rose another 2.2% yesterday to a 27-month high of 4,486 ringgit/t or $1,032/t (+5.4% from the start of the week) on forecasts of a cut in production in Malaysia and Indonesia, the expected increase in exports in October - November, and the increase in domestic consumption in Indonesia, where from January 1, 2025, the B40 mandate to blend 40% biofuel into fuel is being implemented.

Malaysian authorities are increasing to 10% the maximum duty rate on crude palm oil exports worth more than 4,050 ringgit/t from November 1.

According to Intertek Testing Services, in September, compared to August, Indonesia reduced palm oil exports by 24.8% from 2.38 million tons to 1.79 million tons due to a 33% decrease in imports of this oil by India to a 6-month low of 527,314 thousand tons.

On the Dalian exchange, the most active soybean oil contract rose by 2.47% yesterday, and palm oil - by 3.48%.

December soybean oil futures on the Chicago Mercantile Exchange fell 0.7% to $956/t yesterday amid profit-taking after a sharp 4.5% gain over two sessions.

In Ukraine, export purchase prices for sunflower oil rose at the ports to $1,080-1,100/t, but refiners are holding back oil sales as refining margins fall and sunflower prices continue to rise due to tight supply. Farmers are holding back sunflower sales in anticipation of rising prices, as they have sufficient working capital due to sales of rapeseed and wheat at high prices.

The decrease in the exchange rate of the euro against the dollar in two months by 3.7% lowers the prices for supplies to European consumers, who were the main buyers of Ukrainian sunflower oil.

According to Trading Economics, the average price of sunflower oil with delivery to customers increased by 6% to $1,228/t during the month.

Data on India's vegetable oil imports in October will show whether importers are ready to buy oils amid rising prices caused by a 30% increase in import duty.