Soybean oil prices rose sharply in Chicago after Trump's announcement, which could support the quotations of other vegetable oils and sunflower

Yesterday, on his page on the Truth social network, D. Trump said he would impose additional 10% tariffs on goods from China and 25% tariffs on goods from Canada and Mexico, which worried markets about possible supply cuts. The Canadian dollar fell to a 4-year low, the peso hit its lowest level since 2022, and soybean oil prices rose 3% on the news.

An increase in tariffs on Canadian goods will reduce supplies of canola oil, which is used in the US to make biodiesel. Against this background, December soybean oil futures on the Chicago Stock Exchange, after falling last week by 8.5% to $910/t (-3% for the month), rose by 3% to $934/t yesterday, but already after closing of trades.

December palm oil futures on Bursa Malaysia yesterday rose 1.2% to 4,699 ringgit/t or $1,056/t (-4.3% for the week) amid speculative buying triggered by forecasts of a cut in domestic production.

According to surveyor AMSPEC, as a result of the sharp increase in palm oil prices, Malaysia reduced its exports from November 1-25 by 8.2% to 1.16 million tons (compared to the same period in October).

According to Trading Economics, the average price of sunflower oil delivered to customers for the week fell by $8/t to $1,315/t.

In Ukraine, export demand prices for sunflower oil for delivery to Black Sea ports fell by $10-20/t to $1,120-1,135/t for the week, but supply remains low as farmers do not sell sunflowers, expecting further price increases.

Purchase prices for sunflower with an oil content of 50% dropped by UAH 1,000-1,200/t during the week to UAH 25,500-26,000/t with delivery to the factory, which almost stopped sales, although some processors have sufficient stocks for the coming months. Lower sunflower meal prices are also putting pressure on sunflower prices.