Vegetable Oil Prices Continue Downward Trend Amid Seasonal Supply Increases

Palm oil prices continue to decline due to seasonal supply increases and weak demand. According to the latest data, November palm oil futures on Bursa Malaysia fell 3% to $1,135/t over the past week. This is a further drop of 7% month-on-month. The decrease in price is largely attributed to increased production and imports from India, where import duties have been reduced.

India's move to reduce import duties will lead to an increase in supplies and saturation of the domestic market, putting pressure on prices. In addition, the rise in oil prices has failed to support palm oil prices, which are expected to continue falling due to seasonal production increases and weak demand.

The situation is similar for soybean and sunflower oil markets, where demand prices remain under pressure from falling prices. Spot prices for soybean oil in Brazil remained at $1,240-1,250/t FOB during the week, while soybean oil futures in Dalian were around $1,310/t amid a seasonal increase in supply.

The outlook for the vegetable oil market remains uncertain due to ongoing production and import increases. The pace of sunflower harvesting and processing is accelerating, which will lead to an increase in supplies and further pressure on prices.