Prices of palm oil have been growing since the second half of September 2020 supported by recovering of demand after quarantine easing and lower palm oil stocks in Malaysia in the I quarter, declared Kim Tullar, commodity Market Researcher, LMC on September 30 within the online conference Fat&Oil Industry-2020.
“Rising demand from biodiesel industry pushed the prices up as well. Indonesia continues to develop biodiesel production that will further support the demand for palm oil high”, - he said.
The expert added that the prices of rapeseed and sunflower oils rose notably as well mainly due to expected decline of the oilseeds production in 2020/21 MY. However, there is a wide spread between palm oil and other oils that reaches 225 USD/t with sunflower and rapeseed oils and about 150 UDS/t with soybean oil. This will prevent replacement of palm oil with other oils in India who is the key importer.
At the same time, he added that the prices of vegetable oils started to decline gradually and this trend could remain until the end of the year.