Vegetable oil prices drop because of falling mineral oil prices

Worldwide vegetable oil prices dropped at the end of February because of falling mineral oil prices. The high futures prices have discouraged buyers, further lowering prices. The UFOP reports: “Mineral oil traded on the NYMEX continued its downward trend as supply exceeded demand. As a result, the nearby slid below the mark of USD 50 per barrel for some time. In the wake of weak reference prices on the futures markets, vegetable oil prices were reduced considerably on the European cash market at the end of February.

“However, demand has not been generated, because buyers still find current prices hardly financially appealing. Sales of rapeseed oil continue sluggish because falling mineral oil prices reduce the competitive advantage of biodiesel and, consequently, the interest in feedstock. Rapeseed oil currently stands at EUR 657.50 per tonne fob Hamburg, EUR 20 per tonne below the level of soybean oil. At EUR 696 per tonne, sunflower oil continues to be the most expensive vegetable oil.”

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