Rapeseed oil prices set to firm up but palm oil prices declined

In Germany, UFOP reports that vegetable oil prices on the European cash market diverged. While rapeseed oil firmed, palm oil declined sharply. Trends for the coming weeks are mixed.

Prices for rapeseed oil, soybean oil and sunflower oil continued to diverge. Whereas palm oil was on a continued downward trend due to abundant supply of feedstock, the price curve for rapeseed oil most recently was upward sloping again. According to information published by Agrarmarkt Informations-Gesellschaft mbH (AMI), rapeseed oil pricing was however difficult. Dissimilar levels of yield and quality have complicated oil millers’ rapeseed purchases during the ongoing 2017 harvest. Moreover, given the current price level, demand from buyers for rapeseed oil is moderate.

Since EU rapeseed production is smaller than expected, supplies could become increasingly expensive in the coming months, stabilising the upward trend of rapeseed oil prices. Prices of soybean oil will probably still remain volatile in August because of the US weather market. In contrast, sunflower oil is expected to slide slightly as harvest pressure commences to develop.