Vegetable oil prices remain under pressure from lower global demand and increased supply of rapeseed oil

The fall in oil prices to the lowest level since the start of the war against Iran, at $72/barrel, and the reduction in demand for edible oils from India are increasing pressure on vegetable oil prices.

In June 2026, India reduced imports of vegetable oils by 16.6% compared to May to 1.1 million tons, in particular soybean oil by 23% to 381 thousand tons, sunflower oil by 17.5% to 244 thousand tons, and palm oil by 10.5% to a 14-month low of 492 thousand tons.

The start of rapeseed harvest in Europe is increasing the supply of rapeseed oil and putting pressure on prices in the EU, which has already led to a reduction in demand for soybean and sunflower oil from Ukraine.

August palm oil futures on Bursa Malaysia traded steady at 4,547 ringgit/t or $1,118/t during the week as a slowdown in exports was offset by support from a seasonal decline in production.

July soybean oil futures on the CBOT exchange rose 2.9% to $1,485/t (+5.8% month-on-month), supported by a speculative rise in soybean prices in Chicago in anticipation of increased soybean supplies to China, as well as a resumption of oil price growth.

During the week, spot prices for soybean oil in Brazil remained at $1,160–1,170/t FOB, while soybean oil futures in Dalian (China) for delivery in July were trading at $1,225–1,230/t.

The sunflower oil market remains more tense due to seasonal supply reductions from the Black Sea region.

Demand prices for sunflower oil in India increased by $10/t to $1,440-1,445/t CIF Mumbai during the week amid a reduction in the supply of cheap oil from Argentina, while prices for Russian sunflower oil decreased by $10-20/t to $1,300/t FOB.

In Ukraine, the demand prices for sunflower oil with delivery to Black Sea ports remained at $1,330–1,340/t during the week, but due to the shutdown of factories, the offer prices increased to $1,370–1,380/t FOB, so buyers will continue to buy cheaper oil from the Russian Federation or Argentina.

The rise in the euro against the dollar increased the price of rapeseed oil in the EU by $20-30/t to $1,487/t FOB the Netherlands, which supported prices for Ukrainian rapeseed oil, which increased by $20/t in a week to $1,190-1,200/t with delivery to Black Sea ports, while prices for deliveries to buyers with delivery to Poland or the Baltic countries remain at €1,100/t or $1,255/t.

Rising oil prices due to renewed escalation in the Persian Gulf will provide speculative support for vegetable oil prices, but increasing rapeseed oil supply and forecasts of increased sunflower harvests in Ukraine and the Russian Federation will force importers to limit purchases in the coming weeks.