Speculative growth in vegetable oil prices continues on forecasts of reduced stocks

Palm oil prices continued to rise on forecasts of lower inventories in Malaysia and increased consumption and imports by India, supporting soybean and sunflower oil quotes.

Traders are doing speculative buying in anticipation of Friday's USDA report, data from the Malaysian Palm Oil Board due on Nov. 11, and demand and inventory forecasts from an industry conference in Indonesia this week.

Oil prices fell 2% yesterday amid Trump's victory, a stronger dollar and U.S. crude inventories that will limit gains in vegetable oil prices.

India increased palm oil imports by 59% in October to a three-month high of 840,000 tonnes. Refiners stepped up purchases to replenish stocks depleted by low imports and high holiday demand in recent weeks.

December palm oil futures on Bursa Malaysia rose another 2.3% yesterday to RM4,917/t or $1,117/t (+4.7% for the week, +9.6% for the fortnight).

December soybean oil futures on the Chicago Stock Exchange for the week rose by 5.9% to $1,022/t (+4.3% for the month) amid stronger demand for the cheapest oil on the market.

The average price of sunflower oil with delivery to customers during the week increased by 2.9% to $1,326/t (+10.7% for the month), Trading Economics reports.

According to the European Commission, as of October 29, the price of soybean oil in Argentina was $1,101/t, palm oil in Indonesia was $1,170/t, sunflower oil in Ukraine was $1,065/t, and rapeseed oil in Rotterdam was $1,189/t. .

Vegetable oil prices have recently risen on the back of a surge in palm oil, but demand for soybean and canola oil in the US and the EU may fall after Republicans take office in the US and plan to reduce support for green energy programs.