World statistical data

Palm oil production, consumption, stocks (million tonnes)

Tallow and grease prices (US$/tonne)

Sunflower oil prices (€/tonne)

Prices of selected oils (US$/tonne)

Mar 21 Apr 21 May 21 Jun 21 Jul 21 Aug 21 Soyabean 1,220.0 1,369.2 1,427.1 1,352.6 1,414.4 1,389.9 Crude palm 1045.5 1,000.1 1,129.0 1,021.8 1,053.0 1,118.4 Palm olein 985.5 921.6 1,046.6 943.8 990.1 1,069.2 Coconut 1,527.8 1,554.0 1,633.9 1,580.5 1,522.5 1,456.6 Rapeseed 1,218.2 1,339.1 1,386.6 1,302.0 1,367.3 1,425.2 Sunflower 1,637.6 1,589.4 1,595.0 1314.5 1,213.0 1,297.7 Palm kernel 1,434.2 1,430.4 1,464.1 1,355.0 1,236.1 1,299.0 Average 1,296.0 1,315.0 1,383.0 1,267 1,257.0 1,294.0 Index 307.0 312.0 328.0 300.0 298.0 307.0

STATISTICAL NEWS

Palm oil fundamentals

The Mintec Benchmark Prices (MBP) for EU palm oil rose 10% month-on-month to €983/tonne on 31 August. The market continues to recover from price volatility in June due to continued uncertainty over resurgence of COVID-19, as fluctuations in the wider vegetable oils market shook confidence in the palm oil market. The market fell to €783/tonne on 14 June, the lowest level since mid-April.

Market participants expect a decent upside for the palm oil market in August as production is likely to be affected by a continued labour shortage at palm oil plantations due to the ongoing coronavirus situation in Malaysia and Indonesia and a strengthening in the vegetable oil market, particularly soyabean oil.

Additionally, end of July data from the Malaysian Palm Oil Board (MPOB) showed Malaysian palm oil inventories at 1.49M tonnes, down 7.3% month-on-month and against the market’s expectations of flat to marginally higher stocks.

However, production in the 2021/22 marketing year is expected to be higher year-on-year, which will significantly cap price increases.

The main drivers on the demand side continue to be pandemic recovery-related, while labour shortages and inventory levels drive the market on the supply side.

Tallow prices

The US tallow price spot price rose 6.15% month-onmonth to reach US$1,521/tonne on 31 August. The US white grease price also climbed 7.81% to US$1,521.2/ tonne over the same period. Prices have been supported during second quarter 2021 by strong export demand from China, which has exacerbated tighter supply in the current marketing year. With the ongoing recovery in the wider vegetable oils sector, demand is likely to remain firm, with prices accordingly supported over the coming months.

Sunflower oil prices

The Mintec Benchmark Prices (MBP) for EU sunflower oil rose 1.35% to €1,085/tonne on 31 August. The market recovered slightly after falling almost 35% between midMarch and mid-June. With the significant price fall, EU sunflower products have become more attractive and their relative competitiveness against soyabean oil and rapeseed oil has increased. EU sunflower oil consumption for energy purposes is also expected to rise in the coming marketing year, adding to upward pressure on prices. However, an increase in expected production in the 2021/22 still poses a downside risk, with record sowing levels in both Ukraine and Russia during the 2021 planting period.

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