14/08/2024 (UkrAgroConsult) - In the August FAS USDA report, the forecast for the world production of vegetable oils in MY 2024/25 was reduced by 0.95 to 227.1 million tons (223.92 million tons in MY 2023/24; 223.88 million tons in MY 2022/23 and 218 .33 million tons in MY 2021/22), in particular sunflower – by 0.91 to 20.58 (22.19) million tons and palm oil – by 0.36 to 79.83 (79.03) million tons, which partially will be compensated by an increase in the production of rapeseed oil by 0.26 to 34.19 (34.18) million tons and soybean oil – by 0.16 to 65.52 (62.32) million tons.

The forecast of the world consumption of vegetable oils in MY 2024/25 was reduced by 0.54 to 224.38 (218.82; 211.2 and 202.8) million tons, and the global ending stocks – by 0.31 to 30.06 (32 .39; 29.9 and 29.59) million tons due to the reduction of palm and sunflower oil reserves.

December soybean oil futures in Chicago fell 5.1% to the lowest level since late 2020 at $862/t after the release of the USDA’s two-session August report, losing 15% for the month amid increased U.S. and global soybean supply in MY 2024/25.

October palm oil futures on Malaysia’s Bursa exchange fell 5.9% in two weeks to a 7-month low of 3,690 ringgit/t, or $830/t, amid a 13.2% drop in exports in August and lower prices for other vegetable oils, although further declines limited July’s inventory drawdown by 5.35% to 1.73 million tons.

Demand for palm oil is decreasing as the price gap between it and soybean oil narrows, Reuters reports.

Following lower soybean and palm oil prices, the average price of sunflower oil delivered to buyers during the week fell just 0.7% to $898/t (-1.3% on the month) as it was supported by forecasts reduction of production in Ukraine, Russia and EU in the new season.

https://ukragroconsult.com/en/news/soybean-and-palm-oil-prices-fell-to-multi-month-lows/