Vegetable Oil Markets Pressured by Rising Supply and Weaker Crude Prices

Global vegetable oil markets are feeling pressure from rising supply and weaker crude oil prices. The increase in supplies of palm, sunflower, and rapeseed oils is contributing to this downward trend. At the same time, global oilseed production in 2026/27 is projected at a record level, which will limit buying activity.

The prices for vegetable oils have been affected by these factors. In Chicago, December soybean oil futures fell by 3.5% over the week to $1,498/t, although they remain 36% above year-ago levels. The start of the US soybean harvest is adding further pressure.

In China, soybean oil futures declined by around $30/t to $1,310-1,320/t. November palm oil futures in Malaysia fell by 1.5% over the past seven days to 4,810 ringgit/t, or around $1,180/t. This decline is being driven by lower crude oil prices and expectations of further stock growth after palm oil exports declined by 12.8-24.7% in the first 20 days of September.