We use cookies on our website to track and enhance your user experience. For more information or to update your cookie settings, please refer to our privacy policy.

Accept Decline
Search

Palm oil prices slip, as soybean values edge up

1 RM (Malaysian Ringgit) = 0.21 USD
1 USD = 0.79 GBP

*Exchange rates calculated and market prices reported on July 1 2024

Crude Palm Oil

Average Palm Oil Export Prices

  • Indonesia
    $925 tonne (+$25/tonne)  

  • Malaysia
    $885/tonne (+$30/tonne)

Average Palm Oil Export Prices July 24

Source: USDA Foreign Agricultural Service

Malaysia palm market

The Malaysia CPO Settlement Price fell throughout most of June before rallying at the end of the month. The average for the month was RM3,929/tonne, which was 1.1% more than in May, but 11.3% higher than the average June 2023 price and 44.6% less than the all-time high in April 2022.

The opening price was above RM4,000/tonne, but prices began to fall reaching a low of RM3,858/tonne by the 25th. There was then a rally with prices by the 1st of July above the RM4,006/tonne mark again. Prices were supported by an increase in all vegetable oil prices and concerns about weaker palm oil production.

Malaysia CPO Settlement Price RM

Malaysia CPO Settlement Price RM July 24

Soybean oil

April 2024 Soybean Oil Export Prices $/tonne2024 Soybean Oil Export Prices $/tonne July 24

Reduced Brazilian exports pushes soybean prices up

Better weather conditions in South America have meant that there has been a larger soybean crop this season, but that has meant stronger demand, especially exports. The USDA estimates that combined soybean meal exports from the US, Argentina and Brazil in the first five months of 2024 were at almost 27 million tonnes, 20% more than the same period last year.

 

After previously expecting record global oilseed production in 2024/25, the USDA has lowered its expectations. In its June report it said:

Despite, a recent increase in oil price, the US Department of Agriculture is expecting a record global oilseed crop in 2024/25. In its latest report, it said:

“The global oilseeds production forecast is lowered over 1 million tons to almost 686 million tons this month almost entirely on a reduced Australia rapeseed outlook. Similarly, global oilseeds trade is down on lower Australia rapeseed exports. Oilseed ending stocks are forecast down almost 1 million tons on reduced stocks of Brazil soybeans and global rapeseed. Global crush is trimmed on reduced rapeseed utilization. Global meal trade is up almost 200,000 tons on higher U.S. soybean meal exports. Global vegetable oil trade is down slightly on reduced EU and UAE rapeseed oil exports.   The projected U.S. season‐average farm price for soybeans is unchanged at $11.20 per bushel.”

Average 2022/24 Soybean Oil Prices $/tonne

Average 2022-24 Soybean Oil Prices $/tonne July 24

Rapeseed oil
Average 2022/24 Rapeseed Rotterdam (Canola) Oil Prices $/tonneAverage 2022/24 Rapeseed Rotterdam (Canola) Oil Prices $/tonne July 24Sunflower oil
Average 2022-24 Sunflower Seed Oil Prices $/tonne

Average 2022-24 Sunflower Seed Oil Prices $/tonne July 24

Shipping Update

Shipping costs jump to above January highs in May

The cost of shipping continues to soar because of disruption in the Middle East. This is resulting in shipments travelling around the south of Africa rather than risking passage through the Suez Canal into the Mediterranean. The latest Drewry World Container Price is $5,318 per 40ft container, which was 25.8% higher than the month before. It was 246% higher than the price a year ago.

Attacks by Houthi Rebels in the Gulf and Red Sea region have resulted in shipping companies rerouting loads and an increase in insurance costs. Meanwhile, the Panama Canal in the Americas has not been operating at full capacity because of dry weather. On top of that, there have been labour disputes in ports and railroads in the US, Canada and Germany.

From the May 30th 2024 Drewry World Container Index report:

  • The composite index increased 4% to $5,318 per 40ft container this week and has increased 256% when compared with the same week last year.    
  • The latest Drewry WCI composite index of $5,318 per 40ft container is 49% below the previous pandemic peak of $10,377 in September 2021, but it is 274% more than average 2019 (pre-pandemic) rates of $1,420.
  • The average composite index for the year-to-date is $3,579 per 40ft container, which is $831 higher than the 10-year average rate of $2,748 (which was inflated by the exceptional 2020-22 Covid period).
  • Freight rates from Shanghai to Rotterdam increased 7% or $455 to $7,322 per 40ft container. Likewise, rates from Shanghai to Los Angeles and Shanghai to New York rose 4% to $6,673 and $7827 per 40ft box respectively. Similarly, rates from Rotterdam to Shanghai, Shanghai to Genoa and New York to Rotterdam grew 1% to $676, $7,102 and $640 per feu respectively. Conversely, rates from Rotterdam to New York decreased 2% or $49 to $2,044 per 40ft container. Meanwhile, rates from Los Angeles to Shanghai remain stable.  Drewry expects minor increase in freight rates due to congestion at Asian ports.

Source: Drewry Supply Chain Advisors

Drewry WCI Trade Routes from Shanghai (US$/40ft) July 24

View Drewry shipping data here.

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.