Rising supply and weaker crude oil prices pressure vegetable oil markets
Global vegetable oil prices weakened as seasonal supplies increased and crude oil prices declined. Chicago soybean oil fell 3.5%, Malaysian palm oil 1.5%, and Indian sunflower oil 3.6%. Record 2026/27 oilseed production and rising Ukrainian exports may extend market pressure.
Global vegetable oil markets remain under pressure from seasonally rising supply and weaker crude oil prices. Supplies of palm, sunflower and rapeseed oils are increasing, while soybean oil availability is also expected to rise in the coming weeks. At the same time, global oilseed production in 2026/27 is projected at a record level, limiting buying activity.
December soybean oil futures in Chicago fell by 3.5% over the week to $1,498/t, although they remain 36% above year-ago levels. The start of the US soybean harvest is adding further pressure. In China, soybean oil futures declined by around $30/t to $1,310–1,320/t.
November palm oil futures in Malaysia fell by 1.5% over the past seven days to 4,810 ringgit/t, or around $1,180/t. The market is being pressured by lower crude oil prices and expectations of further stock growth after palm oil exports declined by 12.8–24.7% in the first 20 days of September.
Sunflower oil bid prices in India fell by 3.6% over the week to $1,380/t CIF Mumbai amid higher supply from the Black Sea region. In Ukraine, bid prices declined by $10/t to $1,090–1,100/t delivered to Danube ports as risks to port logistics increased and freight costs rose.
European rapeseed oil prices fell by $10–15/t over the week to $1,420–1,425/t FOB Netherlands amid rising supplies of cheaper Ukrainian product. In the first 17 days of September, Ukraine exported 81.8 thsd tons of rapeseed oil and 68 thsd tons of sunflower oil. The market is expected to stabilize in the coming weeks, although further weakness in palm oil could continue to pressure soybean and sunflower oil prices.
To Read more about Edible Oil News continue reading Agriinsite.com
Source : UkrAgroConsult
