The global vegetable oil complex this week has presented us with a patchwork of fluctuations. With some oils such as palm, soybean oil (cash), coconut, and olive strengthening, others like rapeseed, sunflower, and CBOT for soybean oil have been decreasing. Dive into this article to get a comprehensive snapshot of the latest price trends and understand the mixed signals emerging from the Vegetable Oil complex.
Malaysia’s crude palm oil settled firmer at €736 | $785 / mt on the BMD as of 18/09/2023, a rise from €724 | $776 / mt just a week prior. This positive trend is also reflected in The Vesper West EU Forward Price Index for crude palm oil, which recorded an increase to €888 | $945 / mt (CIF Rotterdam, November contract) from its previous week’s rate. Market participants attribute the increase to last week’s price rise of rival oils and higher petroleum prices. Notably, in contrast to rival oils, palm oil hasn’t lost all its gains but can do so in the absence of supporting factors.
On the other side, the CBOT soybean oil price has weakened due to a not-so-bullish WASDE report last week and lower August crushing volumes reported by US NOPA (National Oilseed Processors Association). As of 18/09/2023, the price rested at €1290 | $1375 / mt, down from €1298 | $1392 / mt the previous week.
Yet, Argentina’s export prices for soybean oil have firmed a bit, as the market expects fewer volumes from the region in December on extended plant stoppage and maintenance. The Vesper Argentina Forward Price Index for this commodity confirmed this uptrend, marking €924 | $985 / mt on 18/09/2023, up from €915 | $981 / mt the week before.
Rapeseed and rapeseed oil prices have been mirroring the bearish mood in the CBOT, influenced by marginal canola production cuts by StatCan. MATIF price for rapeseed (18/09/2023) decreased to €433 | $462 / mt from €445 | $477 / mt same period last week, and The Vesper West EU Forward Price Index for crude rapeseed oil (18/09/2023) declined to €915 | $976 / mt (FOB, NDJ contract) from €925 | $992 / mt same period last week.
Sunflower oil prices followed suit, with a decrease influenced by bumper harvests in Ukraine and Russia and subdued import demand. The Vesper West EU Forward Price Index for crude sunflower oil (18/09/2023) dropped to €806 | $860 / mt (FOB, OND contract, 6 ports) from €849 | $910 / mt same period last week.
Finally, prices for refined olive oil in Spain (EXW Andalucia) firmed slightly as USDA cut global olive oil production forecast for 2023/24. On 15 september 2023, the Vesper Price Index for refined olive oil (EXW Andalucia) recorded an increase to €7500 | $7983 / mt from €7350 | $7971 / mt compared to the same period last week.
Go to Vesper for more prices on the global vegetable oil market.