Vegetable Oil Markets Under Pressure from Rising Global Oil Prices

Vegetable oil markets have come under pressure from rising global oil prices despite the increase in production. According to the USDA, global oilseed production is expected to reach a record high of 723.46 million tons, exceeding last year's figure by 22.42 million tons.

Rising oil prices have seen Brent crude futures rise 11.2% to $109/barrel in November, while palm oil futures on Bursa Malaysia fell 1.9% to 4,883 ringgit/t ($1,200/t).

Soybean oil demand is also expected to fall under pressure from the new harvest and increased supply in the US, with prices for soybean oil in Brazil increasing by $10/t to $1,210-1,220/t FOB.