Vegetable oils posted their third consecutive week of gains on major exchanges, according to data reported by StoneX. Soybean oil, despite a reduction in biofuel use in the US in July, according to the EIA, showed significant support in total demand in the country in August, according to the USDA. This scenario drove a bullish performance in prices, with the December 2024 soybean oil contract advancing 3.8%, closing at US¢44.0 per pound.
In addition, increases in the prices of Palm oil and oil also influenced the general rise in vegetable oils.
Palm oil posted weaker import data from India. Other market fundamentals remained largely unchanged. Still, it maintained gains seen in recent weeks. Prices hit their highest levels since April.
The sharp appreciation of oil was a crucial factor that boosted prices last week, contributing to the recovery of the sector. The December 2024 palm oil contract closed at USD 1,020.2 per tonne, up 1.7%.
These trends in vegetable oil prices reflect the internal dynamics of the market. In addition, they are also influenced by global factors, such as changes in oil prices. Changes in demand from major consumer countries also play a significant role. The continuation of this upward scenario could impact production costs in several sectors, especially in the food industry, where vegetable oils are key inputs. Producers and consumers should keep an eye on these market movements in the coming months.
Source: Leonardo Gottems | agrolink
