Prices for vegetable oils are increasing against the background of increased export demand

The 3.8% increase in oil prices for the week caused by the instability in the Middle East led to an increase in the prices of vegetable oils.

November palm oil futures on Bursa rose 3.5% for the week to 3,947 ringgit/t or $907/t (+2.5% on the month) amid a pick-up in exports in September after a contraction in August.

According to ITS data, for September 1-20, Malaysia increased palm oil exports by 10% to 953.98 thousand tons compared to the same period in August.

According to admis.com estimates, in 2024/25, compared to the current season, India will increase its demand for vegetable oils from 16.3 to 16.8 million tons, therefore palm oil imports will increase from 9.44 to 9.8 million tons, soybean - from 3.2 to 4 million tons, and supplies of sunflower oil will decrease from 3.55 to 2.85 million tons. In August, the country reduced the import of edible oils by 17% compared to July, to 1.53 million tons.

December futures for soybean oil in Chicago increased by 6.2% for the week to $912/t (+2.5% for the month). Cuts in processing have reduced soybean oil inventories, but a build-up in new-crop soybean supplies will restore processing volumes in September and lower soybean oil prices.

Export demand prices for sunflower oil with delivery to Ukrainian Black Sea ports rose to $930-935/t, while those for deliveries to Bulgaria and Poland remained at $960-970/t.

According to forecasts of Oil World, in 2024/25 MR, the global export of sunflower oil will decrease compared to the previous season from 16.02 to 13.91 million tons, so the demand prices for it will grow, as will the premium for this oil compared to palm and soybean oil oils