According to the Solvent Extractors Association of India (SEA), in June, India increased its import of vegetable oils by 24% compared to May, reaching 1.3 million tons. Specifically, palm oil imports increased by 56% to 683,130 tons, and soybean oil imports increased by 37% to 437,660 tons. However, imports of sunflower oil decreased by 35% to 190,790 tons.

The almost complete halt in the operation of the grain corridor in June led to a decrease in bulk shipments of sunflower oil that could have been directed to India. In July-August, sunflower oil exports from Ukraine are expected to further decrease due to the expiration of the grain agreement. However, shipments through the Danube ports and western border crossings will increase.

Operational data shows that in June, Ukraine increased its export of sunflower oil by 5% compared to May, reaching 476,000 tons. Particularly, exports to EU countries increased by 37% to 256,000 tons, which is the highest figure since December 2022. Overall, in the first ten months of the 2022/23 marketing year, sunflower oil exports amounted to 4.8 million tons, with the EU accounting for 41% or 1.95 million tons (32% more than the same period in the 2021/22 marketing year).

According to the European Commission, Ukraine’s share in sunflower oil supplies to the EU in September-June of the 2022/23 marketing year increased to 88% compared to 82% in the 2021/22 marketing year.

On the Bursa Malaysia Derivatives Exchange, September futures for palm oil rose by 1.3% to 3,930 ringgits per ton or $862 per ton, with a weekly increase of 0.3%. This was based on data from surveyors Amspec Agri and Intertek Testing Services, which indicated an increase in exports by 16.7-19.3% during the period of July 1-15.

Indonesia, where legislation requires palm oil exporters to sell a portion of their production in the domestic market, may reduce palm oil supply after increasing the biodiesel blend mandate to 35% in fuel.

August futures for soybean oil on the Chicago Board of Trade declined by 0.4% to $1,427 per ton (-0.7% for the week, +10.6% for the month).

Prices for sunflower oil with buyer delivery decreased to $895 per ton during the week, but there was a slight increase in demand for new crop oil deliveries.