Global Oilseed Prices Soften Amid Record Harvests and Market Uncertainty

30-Apr-2025 08:26 PM

Mumbai.  Global edible oil prices are showing signs of weakening, influenced by a series of developments in major producing and consuming countries. Brazil, a top global soybean producer, has reported a record soybean harvest, and harvesting is almost complete. Meanwhile, Argentina has begun harvesting its new crop, and soybean sowing is underway in the United States.

However, uncertainty in trade relations between the US and China has had a direct impact on the global market. While US officials previously hinted at ongoing tariff discussions with China, Beijing has denied any such talks, leading to a decline in futures prices of soybean and related products on the Chicago Exchange.

In response, China has halted soybean imports from the US and increased purchases from Brazil, causing concern among American exporters.

In the palm oil sector, expectations of higher production in Malaysia have also weighed on prices. Malaysia is aggressively working to boost its palm oil export performance.

Crude palm oil (CPO) prices, which had previously risen above soy oil, are now softening. On the Kuala Lumpur-based Bursa Malaysia Derivatives (BMD) Exchange, the benchmark July futures contract for CPO fell by 2.37%, closing at 3961 ringgit ($908.49) per tonne. Analysts believe further declines are possible if soy oil prices continue to weaken.

In India, soybean and soy oil prices remain relatively stable, with only limited fluctuations. Mustard arrivals are below normal, while groundnut market sentiment remains uncertain due to the recent government announcement of sales.

The government has temporarily suspended the sale of soybeans from buffer stocks in response to domestic industry requests. This means prices will now be more demand-driven than supply-driven.

Elsewhere, oilseed markets remain calm. Canola prices in Canada have stabilized following China's move to impose a 100% customs duty on its import.