Palm oil prices at highest since early July
1 RM (Malaysian Ringgit) = 0.24 USD
1 USD = 0.7 GBP
*Exchange rates calculated and market prices reported on October 3 2024
Crude Palm Oil
Average World Bank August Palm Oil Price
US$933/tonne (+US$49)
Malaysia palm market
The Malaysia CPO Settlement Price rose above RM4,000/tonne for the first time since early July in the second half of September. The average price for the whole of the month was RM3,930/tonne, 3.6% more than the average for August and 3.9% more than the average for September 2023.
Prices rose fast from the 17th September onwards, a date that saw the lowest price (RM3,767/tonne) since early February. The price peaked at RM4,148/tonne on the 26th September, a value that was the highest since mid-April. The final price of the month was RM3,999/tonne, which was 43.7% lower than the all time high set in April 2022.
A weaker Malaysian Ringgit gave support to the country’s palm oil crop as did fears over a tightening of supplies. However, the price was kept in check by competitive prices for other vegetable oils, but values did rise at the beginning of October.
Malaysia CPO Settlement Price RM
Soybean oil
Small drop in oilseed production
In its most recent global vegetable oil report, the USDA’s forecast for 2024/25 was:
“The global oilseeds production forecast is lowered over 3.1 million tons to 687.4 million this month on lower EU rapeseed and lower Ukraine and EU sunflowerseed. Oilseeds trade is unchanged as higher soybean exports from Paraguay are offset by declines in global rapeseed and sunflowerseed exports. Oilseeds ending stocks are forecast over 500,000 tons higher on greater Canada rapeseed and Argentina soybeans. Global crush is lowered nearly 1.7 million tons on reduced sunflowerseed utilization in Ukraine and the EU. Global meal trade is reduced over 500,000 tons on lower sunflowerseed meal. Global vegetable oil trade is unchanged. The projected U.S. season‐average farm price for soybeans is unchanged at $10.80 per bushel.”
Average world soybean oil prices in US$/tonne
Rapeseed oil
Average world rapeseed oil price in US$/tonne 
Sunflower oil
Average world sunflower oil prices in US$/tonne
Shipping Update
Shipping costs down 13% since mid-July but still very high
There was a rapid decline in shipping costs during September, but the intensification of hostilities in the Middle East may lead to prices rising again. In its latest weekly report (to the 26th September) the Drewry World Container Index fell 7% in the week to US$3,691 per 40 foot container. That price was 28.7% lower than the month before and 37.8% less than the July peak. Costs from Shanghai to European ports fell the fastest.
From the 26th September 2024 Drewry World Container Index report:
- The latest Drewry WCI composite index of $3,691 per 40ft container is 64% below the previous pandemic peak of $10,377 in September 2021, but it is 160% more than the average 2019 (pre-pandemic) rate of $1,420.
- The average composite index for the year-to-date is $4,113 per 40ft container, which is $1,288 higher than the 10-year average rate of $2,825 (inflated by the exceptional 2020-22 Covid period).
- Fright rates from Shanghai to Genoa decreased 15% or $716 to $4,212 per 40ft container. Similarly, rates from Shanghai to Rotterdam declined 11% or $525 to $4,157 per feu. Likewise, rates from Shanghai to New York dropped 5% or $336 to $6,028 per 40ft box. Also, rates from Shanghai to Los Angeles fell 2% or $90 to $5,490 per feu. Conversely, rates from New York to Rotterdam and Rotterdam to New York increased 1% to $722 and $2,067 per 40ft box, respectively. Meanwhile, rates from Rotterdam to Shanghai and Los Angeles to Shanghai remain stable. Drewry expects a continued decline in rates for Asia-to-Europe routes due to weaker demand. Meanwhile, rates for Transatlantic and Transpacific Headhaul trade routes are expected to rise, driven by potential labour strikes and the impact of China's Golden Week holiday.
Source: Drewry Supply Chain Advisors
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.