Vegetable oil prices have rebounded after a recent dip, showing resilience despite a decrease in oil prices. Soybean and palm oil futures experienced a rise, driven by concerns over supply shortages. The recovery comes amidst losses in soybeans and potential production issues in palm oil due to adverse weather conditions in Indonesia.
India, a major importer of vegetable oils, has seen a significant increase in edible oil imports, rising by 13%. This surge is particularly notable in palm and soybean oil imports. However, sunflower oil imports have declined due to falling prices.
Russian sunflower oil export prices have slightly increased, impacting demand from major importers like India and China.
Despite a 3.2% drop in oil prices for the week, soybean oil futures in Chicago and palm oil futures in Malaysia rose between 2.2% and 3.2%, bouncing back from losses late last week. July soybean oil futures in Chicago surged by 3.2% to $980 per ton this week, despite a 9% decline for the month. This rise follows news of a projected loss of 1-2 million tons of soybeans in Brazil.
June palm oil futures in Malaysia increased by 2.2% to 3,930 ringgit per ton or $830 per ton from Monday, fueled by forecasts of adverse weather in Indonesia. The Indonesian Meteorological Agency has issued warnings of thunderstorms and tornadoes expected from May 7 to 13, potentially leading to landslides and floods. Additionally, a dry season forecasted from May to August across 64% of Indonesia's territory is expected to negatively impact palm tree yields.
Despite the seasonal build-up in soybean and palm oil supplies, the recent price recovery underscores the volatility and sensitivity of the vegetable oil market to supply and demand dynamics, as well as external factors like weather conditions and global economic trends.
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