by PressThe global oilseed market: overview of dynamics
The global oilseed market is experiencing uncertainty
The global oilseed market is unstable. For some time, the price of soybeans remained stable due to the high demand for soybean oil. But, increased supplies from South America are putting pressure on the sector. The expansion of acreage in the U.S. is also having an impact, as reflected in market processes.
However, the key factor is the tension in trade relations. This tension is caused by the new tariff policy introduced by the White House. The IGC provides the following data:
1. The average cost of global exports remained at the same level as in previous months.
2. This is due to lower prices in Argentina amid rising prices in Brazil and the US.
3. Spot soybean futures on the Chicago Stock Exchange showed a slight increase.
4. In many cases, trading was primarily technical due to a limited number of fundamental factors.
5. Market sentiment depended on trade relations between Beijing and Washington, causing uncertainty.
It is also worth noting the increase in soybean oil prices. Nevertheless, large shipments from South America overshadowed this factor. Export rates in the Persian Gulf were US$418 per ton on FOB terms. In Brazil, the price increased by 2% to US$406, driven by US futures contracts. In Argentina, the FOB price fell 3% to US$396. This increased the country’s competitiveness in the global market and boosted sales volumes.
Rapeseed market overview
According to the IGC, the situation for rapeseed has improved in recent months. This was made possible by a decline in old crop stocks. Additionally, the cost of canola futures in Canada increased by 6%. Prices for vegetable oil are also growing. In Vancouver, the FOB price increased by US$26, reaching US$555 per ton. A similar trend exists in Australia.
In April, vegetable oil prices increased by more than 2% compared to March rates. On an annualized basis, growth was 21%.
Meanwhile, the cost of palm oil has decreased. Experts attribute this to seasonal factors. Since April, Southeast Asian countries have increased production. Still, this decline was offset by higher prices for soybean and rapeseed oils. Prices for other vegetable oils remained virtually stable throughout the year.
Demand for soybean and rapeseed oils remains high. At the same time, supplies will decline toward the end of 2025. The situation will not be critical, given the forecast increase in oilseed production for the 2025–2026 season. As stated by the FAO, the global harvest could reach 692 million tons.