Vegetable Oil Market Sees Mixed Trends Amid High Crude Prices and Seasonal Supply Increases

The global vegetable oil market is experiencing mixed trends due to conflicting factors.

On one hand, the sharp rise in crude oil prices and reduced sunflower oil supplies from the Black Sea region are supporting global vegetable oil prices. October Brent futures have gained 12.7% over the past week to $89 per barrel, improving the outlook for biofuel feedstock demand.

However, a seasonal increase in rapeseed and sunflower oil supplies from Ukraine and Russia is expected to limit further price gains. Ukrainian crushers are increasingly switching to rapeseed due to low domestic prices, which has put pressure on rapeseed oil prices.

Palm oil prices in Malaysia rose 1.1% over seven days to 4,748 ringgit/t ($1,160/t), supported by stronger Indian imports. Nevertheless, further growth in Malaysian production and stocks continues to limit price gains.