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Global vegetable oil markets presented a mixed picture in July, with palm kernel oil (PKO) emerging as the strongest performer, recording a significant price increase against a backdrop of declines for most other major oils. According to World Bank data published on August 5, palm kernel oil prices escalated by 12.7% over the month, reaching $2,441 per ton – its highest level in three months.
This substantial rise in PKO prices was primarily fueled by a notable decrease in the cost of coconut oil. Coconut oil, a close substitute for palm kernel oil across the food, cosmetics, and pharmaceutical sectors, saw its prices drop by 5.4% from June, settling at $1,924 per ton. This marks its lowest price point since November. The widening price disparity between these two oils subsequently boosted demand for palm kernel oil, driving its quotations sharply upwards.
In contrast, conventional palm oil experienced a marginal decrease, slipping by 0.2% to $1,101 per ton, marking its lowest value since February. The broader vegetable oil market also trended downwards during July. Rapeseed oil declined by 1.8% to $1,494 per ton, while sunflower oil also fell by 1.8%, reaching $1,483 per ton. Soybean oil registered the most significant drop among the group, decreasing by 4.6% to $1,660 per ton.
These latest figures underscore dynamic shifts within the global vegetable oil market. While the majority of major vegetable oils experienced a depreciation in value during July, palm kernel oil notably distinguished itself with the most substantial monthly price surge.
UkrAgroConsult, leveraging nearly three decades of expertise in agricultural markets, has built an extensive database that forms the foundation of its AgriSupp platform. This multi-functional online platform provides market intelligence for grains and oilseeds, offering access to daily operational information on Black Sea and Danube markets, along with analytical reports and historical data.
Source: UkrAgroConsult