Palm oil prices remain low due to reduced exports, limiting gains in soybean and sunflower oil prices

Palm oil futures in Malaysia have been trading at a low level for the week, and may fall further on the back of reduced exports. This increases the pressure on soybean and sunflower oil quotes.

For May 1-15, compared to the same period in April, Malaysia reduced the export of palm oil products by 5.2% to 600.8 thousand tons, according to surveyor Intertek Testing Services, and according to the estimates of Societe Generale de Surveillance (SGS) - to 427 thousand tons

July palm oil futures on Bursa Malaysia rose 2.3% to 3,892 ringgit/t or $831/t (+0.7% for two weeks) on Friday amid higher oil prices.

On the Dalian exchange, contracts for palm oil rose by 0.37%, and for soybean oil - by 0.54%.

The Malaysian government left the crude palm oil export duty at 8% for June, but lowered the base price from 4,273.93 ringgit/t in May to 3,956.06 ringgit/t or $845.13/t in June, which will help lower export prices. prices

July soybean oil futures on the Chicago Stock Exchange on Thursday and Friday rose 3.7% to $995/t (+1.8% for the week, +4.8% for the two weeks). But overall for the month, they were down 0.9% on the back of a cut in US processing in April and an acceleration in soybean harvesting in Argentina.

According to Trading Economics, during the week the average price of sunflower oil with delivery to customers increased by 0.8% to $856/t (-1.4% for the month), in particular in Ukraine – by $10/t to $810-820 /t with delivery to the Black Sea ports thanks to a reduction in offers. EU delivery prices are stabilizing as rapeseed and soybean oil continues to enter the market.

Analysts at Reuters believe that palm oil will trade between 3,787-3,857 ringgit/t during the month, unless there is a significant jump in oil prices.

July Brent oil futures rose by 1.4% for the week following the attacks on Russian oil depots and refineries by Ukrainian UAVs, as well as on expectations of increased demand from China against the background of the planned buyout of some unfinished real estate from developers in order to avoid their bankruptcy.

The death of the Iranian president may reduce the speculative impact on oil prices, as the activity of Iranian proxies in the Red Sea will decrease before the election of a new president. The other day, the Houthis damaged a tanker carrying oil from the Russian Federation to China in the Red Sea.