start of may

Hello everyone, Please enjoy a fresh overview of the vegetable oil market.

🌻 Sunflower Oil

FOB sunflower oil prices softened slightly as of May 6, 2026, with Ukraine and Russia down by $10/MT WoW — to $1,375/MT and $1,365/MT respectively. European origin remained flat at $1,525/MT, while Argentina continued trading at a discount, with May and June offers at $1,280/MT.

Key spreads currently:

– Europe premium vs Ukraine: +$150/MT

– Europe premium vs Russia: +$160/MT

– Argentina discount vs Ukraine: -$95/MT

– Argentina discount vs Europe: -$245/MT

On a YoY basis, the market remains significantly higher:

– Ukraine: $1,145 → $1,375 (+$230/MT)

– Russia: $1,135 → $1,365 (+$230/MT)

– Europe: $1,230 → $1,525 (+$295/MT)

Ukraine’s sunflower oil exports dropped 29% YoY in 2025. Key buyers in 2026 are Spain, the Netherlands, Italy, Turkey, India, and Egypt. Meanwhile, Chinese demand has sharply declined compared to previous years.

India’s sunflower oil imports fell from 3.72 MMT in 2024 to 2.84 MMT in 2025 (-24%).

Main suppliers in 2025 were:

– Russia: 1.30 MMT

– Ukraine: 652k MT

– Argentina: 628k MT

Russia continues dominating the global sunflower complex thanks to the world’s largest crushing capacity, while Argentina is steadily strengthening its position through stable supply and competitive pricing.

🫘 Soybean Oil

CBOT soyoil continues leading the broader vegetable oil rally. July futures are currently trading around 76.9 c/lb.

South American FOB indications remain firm:

– Argentina FOB ~ $1,200/MT

– Brazil FOB ~ $1,200–1,213/MT

Several factors continue supporting the market:

– Tightening Argentina soyoil export availability

– Higher domestic biodiesel consumption

– US/EU export restrictions and anti-dumping duties limiting biodiesel exports

– Lower exportable soyoil supply supporting FOB values

– South American farmers continuing to hold stocks

– Producers delaying aggressive sales awaiting higher prices

– Slower farmer selling supporting nearby market structure

At the same time, several bearish factors continue capping aggressive rallies:

– Brazil soybean crop increasing to around 173 MMT

– Large South American soybean supply

– Rapid US planting progress

– Occasional pressure from weaker crude oil prices

🌴 Palm Oil

BMD palm futures corrected from 4,710 RM to 4,577 RM by May 6, 2026, though fundamentals remain broadly bullish.

Malaysia RBD palmolein FOB remains near $1,200/MT, while Indonesia continues offering more competitive pricing:

– RBD olein ~ $1,160–1,170/MT

– CPO FOB ~ $1,250/MT

Malaysia CPO FOB is currently near $1,287/MT, while the CPKO market remains exceptionally strong above $2,000/MT.

Despite the recent correction, palm oil continues receiving strong long-term support from biodiesel demand. Expansion of biodiesel programs in both Indonesia and Malaysia is reducing export availability and tightening global supply.

Additional key developments:

– Palm oil is now trading at a premium over soybean oil

– India may face supply tightness if Indonesian exports decline further

– Malaysia olein exports dropped nearly 30% MoM

– Market direction remains highly sensitive to Hormuz tensions and crude oil prices

🌱 Rapeseed / Canola

The rapeseed and canola market remains structurally bullish, with Canadian canola futures holding above 750 CAD/MT.

Dutch rapeseed oil FOB values increased sharply:

– May: EUR 1,200 → 1,240/MT

– June: EUR 1,180 → 1,230/MT

Rapeseed oil prices are now at their highest levels in four years, supported by:

– Strong biodiesel demand

– Solid feed sector consumption

– Tight global oilseed balances

📈 Market outlook

Global vegetable oil markets remain structurally bullish as:

– Biodiesel demand continues growing

– Export availability keeps tightening

– Energy markets remain supportive

Despite periodic corrections, the overall vegetable oil complex continues showing strong underlying fundamentals.

That’s all the news for now. Thank you for your attention, and stay tuned for the next update!