CPO prices volatile heading into August
1 RM = 0.24 USD
1 USD = 0.72 GBP
Crude Palm Oil
Average June Palm Oil Export Prices
- Indonesia $1,041/tonne (-$177/tonne from May)
- Malaysia $1,012/tonne (-$154/tonne from May)
Average 2021 Malaysia Palm Oil Prices $/tonne
Malaysia palm market
After a year of record highs, Malaysia palm prices saw reductions in mid-June, quickly bouncing back before a volatile start into August.
- July 1 CPO settlement price 3710 RM/tonne ($879.04)
- July 14 CPO settlement price 4021 RM/tonne ($952.73)
Malaysia palm prices quickly declined at the end of July and first part of August following a rally on July 22. Economists say this is due to a weakness in competing oils on the Dalian and Chicago exchanges.
- July 29 CPO settlement price 4427 RM/tonne ($1048.93)
- August 2 CPO settlement price 4120 RM/tonne ($976.19)
Outlook
- Global trade logistic issues will remain a challenge with high shipping costs and limited vessel space
- Asia fatty acid market expected to see decline in demand due to COVID-19 restrictions, but expected to be made up for by the reopening of US and EU
- Renewed COVID-19 lockdowns in southeast Asia have tightened supplies
Soybeans
Average June Soybean Oil Export Prices
- US $1,608/tonne (-$43/tonne from May)
- Argentina $1,191/tonne (-$158/tonne from May)
- Brazil $1,233/tonne (-$130/tonne from May)
Average 2021 Soybean Oil Prices $/tonne
|
|
US |
Brazil |
Argentina |
Rotterdam |
|
January |
$977 |
$1,052 |
$1,055 |
$1,081 |
|
February |
$1,084 |
$1,063 |
$1,078 |
$1,127 |
|
March |
$1,306 |
$1,201 |
$1,210 |
$1,290 |
|
April |
$1,386 |
$1,238 |
$1,239 |
$1,406 |
|
May |
$1,648 |
$1,364 |
$1,349 |
$1,588 |
|
June |
$1,590 |
$1,237 |
$1,198 |
$1,524 |
Aligned with the reduction of palm oil prices in June, soybeans also saw a decline. This was slowed further when the US Supreme Court ruled in favour of biofuel blending exemptions.
Strength in global soybean trade pulls back as the market faces uncertainty
- China slows purchases as it’s high levels of stock exceed monthly crush pace
- China has been main driver behind demand as it rebuilt its pig herd following ASF
- Large pork supplies have overcorrected the market, reducing short term soybean meal demand - Lower export forecasts see larger stock supplies for Argentina and Brazil
- US market response/volatility has been greater for acreage and weather projections rather than global demand predictions, so impact remains uncertain until US harvest this autumn
Rapeseed oil
Average 2021 Rapeseed Rotterdam (Canola) Oil Prices $/tonne
|
January |
$1,112 |
|
February |
$1,245 |
|
March |
$1,290 |
|
April |
$1,359 |
|
May |
$1,580 |
|
June |
$1,577 |
Sunflower oil
Average 2021 Sunflower Seed Oil Prices $/tonne
|
|
US |
Rotterdam |
|
January |
N/A |
$1,299 |
|
February |
N/A |
$1,387 |
|
March |
N/A |
$1,640 |
|
April |
$1,830 |
$1,601 |
|
May |
$1,830 |
$1,613 |
|
June |
N/A |
$1,320 |
Disclaimer: The information in this document has been obtained from or based upon sources believed to be reliable and accurate at the time of writing. The document should be for information purposes only and is not guaranteed to be accurate or complete.