Rising supply puts more pressure on global vegetable oil prices
Global vegetable oil prices face pressure from rising 2026/27 soybean, sunflower and rapeseed supplies despite higher crude oil prices. Palm and soybean oil weakened, while sunflower oil saw sharp declines. European rapeseed oil gained on firmer rapeseed and canola prices.
Increasing new-crop supplies are putting more pressure on the global vegetable oil market despite a sharp rise in crude oil prices. Brent has gained around 14% over the past two weeks to $98/barrel, supporting the biofuel sector, but large crops and ample supplies of soybeans, sunflower seed and rapeseed in 2026/27 are limiting the upside potential for vegetable oil prices.
November palm oil futures in Malaysia remained near MYR 4,976/t, or $1,231/t, over the past week. The market is facing pressure from weaker Indian demand and expectations of rising Malaysian inventories. Stocks are forecast to increase by 4.9% in August to a record 2.76 mln tons.
December soybean oil futures in Chicago fell 2.7% over the week to $1,557/t amid expectations of increasing new-crop soybean supplies. Meanwhile, spot soybean oil prices in Brazil remained at $1,190–1,210/t FOB, while futures in China rose to $1,350–1,370/t.
The strongest pressure is being seen in the sunflower oil market. Indian bid prices fell by $30/t over the week to $1,440/t CIF Mumbai amid increasing supplies from the Black Sea region. In Ukraine, bid prices dropped by $30–40/t to $1,200–1,220/t delivered to Danube ports, while Russian sunflower oil declined to $1,250–1,260/t FOB.
European rapeseed oil, by contrast, gained $25–30/t over the week to $1,450–1,460/t FOB Netherlands, following higher rapeseed and canola prices. At the same time, Ukrainian rapeseed oil is offered at $1,280–1,320/t delivered to Poland, limiting the potential for further price gains in the EU.
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Source : Ukr Agro Consult
