Palm oil: has become the most expensive of the four main edible oils for the first time as buyers rush to find a replacement for disrupted supplies of sunflower oil from the Black Sea region.
However, operators say a record premium for palm oil could drive out price-sensitive buyers from Asia and Africa and force them to refocus on soybean oil.
Crude palm oil (CPO) is offered in India at around $1,925 per ton CIF for delivery in March, compared to $1,865 for crude soybean oil in the same period.
At the same time, crude rapeseed oil is offered at about $1,900 per tonne CIF.
According to traders’ comments, Asian and European oil mills have increased purchases of palm oil for nearly a month’s supply to replace sunflower oil, leading to irrational palm oil prices.
A reorientation to the purchase of soybean oil is also possible, but its rapid supply is significantly limited.
However, operators expect the increase in palm oil prices to be temporary and may pass over the next few weeks as some buyers switch to buying soybean oil for April shipments.