OIL WORLD

Malaysian Stocks Reach New High

Stocks of palm oil were record-large at 3.51 Mn T at the end of September and thus 0.7 Mn T above a month and even 1.15 Mn T above a year earlier. 

But apparently, the market had already discounted the very high September production and stocks in preceding sessions when palm oil prices plummeted and widened their discounts vis-a-vis soya oil and other edible oils. Secondly, the much-improved price competitiveness triggered a pick-up in palm oil purchases from many importing countries, primarily from India....

Indian Palm Oil Imports Seen Raising

Disrupted trade flows of sunflower oil are leading to shift in Indian import demand. The preconditions to shift to palm oil are currently favourable. Indian importers have stepped up palm oil purchases since the reduction of import duties on Sept 24. Combined imports of palm oil and soya oil may increase by 0.6-0.7 Mn T on the year this quarter....

 

Soaring Biofuel Output is Raising Net Imports of Oils & Fats

Total net imports of oils and fats as well as UCO in August 2026 exceeded 0.9 Mn T for the second month in a row, resulting in an increase of 0.78 Mn T in June/Aug. Import requirements were mainly satisfied with canola oil, UCO, palm oil and tallow, in this order. Palm oil imports reached a 21-month high of 172 Thd T in August....

Veg Oil Prices Eased Only Slightly in Sept

The OIL WORLD edible oils price index declined to a 4-month low in September, reflecting mainly the recent setback of palm oil prices in the nearby position. The palm oil market is currently having the difficult task of balancing out the existing supply surplus, primarily in Malaysia, and the approaching shortage of export supplies, mainly in Indonesia. .... See the updated monthly average prices for oils & fats until September...

 

Diesel Shortage Promotes Demand for HVO and Biodiesel

The recent rally in fossil diesel prices to record levels is causing some rationing of total diesel demand but at the same time promotes primarily usage of HVO as a drop-in alternative. The margins calculated for HVO producers in the USA have soared to unusually high levels this month on a combination of easing feedstock prices and ongoing firmness of crude mineral oil and gas oil prices. Feedstock prices came under pressure in the US owing to large imports, mainly in July...

Downward revisions for the USA and Indonesia are curbing the year-on-year increase of global biodiesel/HVO production slightly to an estimated 6.4 Mn T in 2026...

Fading Production Growth Contrasts With Partly Strong Demand

Following surpluses of 2.1–2.2 Mn T in each of the most recent two seasons, a production deficit of 1.3 Mn T is currently anticipated in 2026/27. A pronounced slowdown of the production growth will be inevitable in the next 12 months but its magnitude is of course still subject to many uncertainties.

The biggest problem on the supply side will be the decline of global palm oil production caused by a multitude of factors. It is also mainly responsible for the prospective decline in world exports of oils and fats by 0.6 Mn T currently anticipated in 2026/27 with a reduction of shipments from Indonesia by 3.1 Mn T....Latest OIL WORLD supply and demand estimates in the MONTHLY...

Oilmeals Prices Soaring to 3-Year High in September

The demand response to the improved price competitiveness of oilmeals versus feed grains has turned out much more pronounced than initially expected, sparking a rally in global oilmeal prices in September...But deteriorating livestock margins may complicate the disposal of the prospective production increase of 10 Mn T shaping up in 2026/27....