Prices for palm and sunflower oils have slightly decreased, while those for soybean oil remain consistently low

As the rapeseed harvest begins in Europe and the expectation of increased availability of new crop rapeseed oil grows, the demand from European biodiesel producers, who actively bought soybean and sunflower oils from Ukraine in May, has started to decline, leading to a reduction in prices.

Over the past week, the asking prices for soybean and sunflower oils from Ukraine decreased by $20-30 per ton to $900-920 per ton with delivery to Poland and Bulgaria, which is also linked to the decline of the euro against the dollar. According to Trading Economics, the average price of sunflower oil delivered to buyers decreased by 1% over the week to $933 per ton (+7.2% for the month), but the shortage of supplies from Ukraine supports the quotations.

During the past week, August futures for palm oil on the Bursa Malaysia exchange fell by 1.2% to 3900 ringgits per ton or $828 per ton, under pressure from the slowdown in export rates in June following May. According to independent surveyors AmSpec Agri Malaysia and Intertek Testing Services, the export of Malaysian palm oil products from June 1 to 20 fell by 8.1% - 12.9% compared to the same period in May.

Pressure on quotations is also exerted by the decline in soybean oil prices on the Dalian exchange by 0.99%, and palm oil by 0.78% at the end of the week.

July futures for soybean oil in Chicago rose by 1% over the week to $968 per ton (-2.4% for the month), supported by rising oil prices.

August futures for Brent crude oil on the London ICE Futures exchange rose by 3.1% over the week to $85.2 per barrel (+3.9% for the month) due to increased risks of a potential war between Israel and Lebanon.

The rise in oil prices is expected to support vegetable oil prices in the near future.