Advertise
Global vegetable oil markets are facing renewed downward pressure as seasonal supply gains coincide with softer crude oil benchmarks, according to the latest assessment from UkrAgroConsult. Output of palm, sunflower, and rapeseed oils is on the rise, while soybean oil availability is set to expand in the weeks ahead. Adding to the bearish backdrop, worldwide oilseed production for 2026/27 is forecast at a record level, capping fresh buying interest.
On the Chicago Board of Trade, December soybean oil futures lost 3.5% over the week, settling at $1,498 per tonne — still 36% higher than a year earlier. The start of the US soybean harvest has intensified the downward momentum. Across the Pacific, Chinese soybean oil futures slipped by roughly $30 per tonne to $1,310–1,320 per tonne.
In Malaysia, November palm oil futures dropped 1.5% over the past seven days, closing at 4,810 ringgit per tonne, equivalent to around $1,180 per tonne. Traders cited declining crude oil prices and expectations of further stock builds after Malaysian palm oil exports fell between 12.8% and 24.7% during the first 20 days of September.
Sunflower oil bid prices in India eased by 3.6% over the week to $1,380 per tonne CIF Mumbai, reflecting heavier arrivals from the Black Sea region. In Ukraine, bid prices slipped by $10 per tonne to $1,090–1,100 per tonne delivered to Danube ports, where logistics risks have mounted and freight rates climbed.
European rapeseed oil markets also weakened, with prices falling $10–15 per tonne on the week to $1,420–1,425 per tonne FOB the Netherlands, weighed down by increasing flows of competitively priced Ukrainian product. Export data for the first 17 days of September show Ukraine shipped 81,800 tonnes of rapeseed oil and 68,000 tonnes of sunflower oil.
Analysts expect the market to stabilize in the coming weeks, although continued softness in palm oil could keep soybean and sunflower oil quotations under pressure.
Source: UkrAgroConsult