Veg oils price update: CPO rebounds; soyoil slips on profit-taking

Crude palm oil (CPO) futures rebounded from three days of losses to recover to its highest in three weeks on Friday January 16, spurred by gains across the broader vegoil complex and pre-weekend positioning while further indications of a slowing pace of production also lent support

Key takeaways:

  • Soyoil futures experienced losses after a sharp rally, influenced by crude oil strength and profit-taking movements.
  • CPO futures surged over 2%, marking their largest daily increase in five months, driven by biofuel market optimism.
  • Global veg oil markets, including Chinese and South American futures, showed mixed trends amid production estimates and policy updates.

Veg oils price: Soyoil futures see losses amid crude oil strength

Soyoil futures traded with losses after a sharp rally in the previous session, with stronger crude oil limiting part of the negative tone.

The most-active April CPO futures contract on the Bursa Malaysia Derivatives Exchange rose by over 2% to close at 4,071 ringgit ($1,004) per tonne. This was its largest daily increase in five and a half months, with the contract closing at the same level as the midday break but extending the intraday high in the second session to 4,088 ringgit per tonne. And trading to a low of 3,978 ringgit per tonne.

CPO was tracking a rally in CME soyoil futures overnight which extended into Asia hours. This was following market talk of US biofuel plans, which was broadly supportive of the global veg oil complex.

On a weekly basis, the most-active third-month contract rose by 0.87% from the settlement of 4,036 ringgit per tonne on January 9, after swinging between a monthly high and a near one-month low during the week, as the market digested data on high inventories, delays to Indonesia’s B50 biodiesel plan, levy increases and moves in related oils.

Chinese veg oil futures also rose on Friday across palm, soyoil and rapeseed. It saw the most active May contract for palm olein futures on the Dalian Commodity Exchange up by 0.58% to 8,674 yuan ($1,245) per tonne. While the equivalent soyoil contract rose by 0.63% to close at 8,016 yuan per tonne.

The May rapeseed oil contract on the Zhengzhou Commodity Exchange also recovered from losses the previous day to close at 2.07% higher to 9,063 yuan per tonne.

US biofuel plans and their impact on veg oils price

Production estimates from the Southern Peninsular Palm Oil Millers Association (SPPOMA) were reported 17.1% lower in January 1-15 compared with the same period a month earlier. This continues the downtrend recorded so far in SPPOMA figures. Malaysia’s January production is pegged to fall by 13-14% from December’s 1.83 million tonnes based on early estimates by industry analysts.

In the cash market, CPO was traded to India at $1,105 per tonne CFR west coast India (WCI) for February shipment. Discussions toward the close of the day were at $1,1106-1,116 per tonne CFR WCI, also for February.

CPO was also traded at $1,067.50 per tonne FOB Indonesia for February shipment. Discussions for the same month were at $1,065-1,075 per tonne FOB Indonesia at the day’s close. While discussions for February-shipment olein were at $1,010-1,020 per tonne FOB Indonesia.

In the Americas, CME soyoil futures traded with losses in a profit-taking movement following the previous session rally, while stronger crude oil limited the negative pressure.

Market participants positioned ahead of the Martin Luther King Day holiday on Monday January 19, when the CME will be closed for trading.

The most-active March CME soyoil contract went down by 0.51% on the day to 52.70 cents per lb at 1pm US Eastern time.

US biofuel policies and their impact on soyoil futures

On Thursday January 15, soyoil futures rallied after news that the US administration plans to finalize the 2026 biofuel blending mandates under the Renewable Fuel Standards (RFS) by early March, according to news reports.

The US Environmental Protection Agency (EPA) is expected to keep the overall blending targets close to its June proposal of 24.02 billion gallons for 2026, news agency Reuters said on Thursday.

Fastmarkets had reported earlier in the week that the EPA considers the bio-based diesel mandate at 5.2 billion–5.6 billion gallons versus the originally proposed 5.61 billion gallons.

Fastmarkets reported earlier that the US administration intends to drop the plan to penalize 50% of the credits generated by Renewable Identification Numbers (RINs) for all imports of foreign renewable fuels and its feedstocks.

The EPA is expected to send its proposal to the White House later in January and completion is expected about 30 days after review. This schedule is in line with the agency’s public commitments of a final decision in the first quarter of 2026.

Crude oil rebound limits soyoil losses

Crude oil futures rebounded after losses in the previous session, limiting soyoil losses in the session. Participants saw a reduced risk of a US strike against Iran, after days of growing tensions and threats as the country faces the biggest anti-government demonstrations in years.

Meanwhile, soymeal futures traded mildly higher in the session, mainly led by stronger corn prices, which recovered from a sharp decline at the beginning of the week, and supported by a positive tone in soybean futures.

The most-liquid soymeal March contract went up by 0.24% to $289.90 per short ton at the same time.

In the physical market in South America, Fastmarkets heard Argentine soyoil for June and July loading traded at a discount of 5.7 cents per lb to July futures. This saw 2,000 tonnes changing hands for each loading month.

The soyoil basis for February loading was assessed at a discount of 0.4 cents per lb in Brazil and 0.5 cents per lb in Argentina, both to March futures.

On the soymeal front, the February soymeal basis in Brazil fell by $1.00 per short ton from the previous assessment to a premium of $3.50 per short ton to February futures.

In Argentina, the corresponding soymeal basis also fell by $1.00 per short ton from the previous assessment to a premium of $12.50 per short ton to the same futures contract.

Veg oils price movements: Rapeseed

As of 6:30pm Central European time, Euronext May rapeseed futures were trading at €467 ($541.61) per tonne, up by €2.50 per tonne from the previous market close.

FOB Rotterdam rapeseed oil (RSO) prices were mostly steady on Friday. This was despite an early rally in futures on the China-Canada trade agreement.

February offers were reported at €1,030 per tonne, with bids at €1,010 per tonne. This compared with offers at €1,028-1,040 per tonne and bids at €1,010-1,025 per tonne heard on Thursday.

The February-March-April (FMA) strip was offered at €1,035-1,045 per tonne, with bids at €1,025 per tonne, compared with offers at €1,037-1,040 per tonne and buy-side interest around €1,020-1,027 per tonne on Thursday.

Down the curve, May-June-July (MJJ) offers stood in a €1,037-1,047 per tonne range. Bids were at €1,028-1,031 per tonne. This compared with offers at €1,035-1,040 per tonne and bids at €1,018-1,034 per tonne on Thursday.

Veg oils price movements: Sunflower

Prices for FOB sunflower oil (SFO) across six EU ports again narrowed along the curve on Friday. March prices eased slightly, while prices for April onwards rose with higher offers.

Levels had risen to multi-year highs earlier this week amid prolonged uncertainty over possible supply disruptions out of the Black Sea.

February and March (FM) volumes were offered at $1,570 per tonne and $1,520 per tonne respectively, but no bids surfaced. This compared with offers at $1,560 per tonne and bids at $1,480 per tonne on Thursday.

More activity was reported for the April-May-June (AMJ) window. Offers were heard at $1,490-1,500 per tonne. Bids were at $1,440-1,445 per tonne. This compared with AMJ offers at $1,475-1,480 per tonne and bids at $1,440-1,445 per tonne on Thursday.

No sunflower oil trades were reported on Friday.

Fastmarkets’ comprehensive coverage includes a wide range of veg oils and meals, including palm, coconut, cottonseed, peanut, sunflower and canola. Explore our prices.

What to read next
Vegoils futures traded largely higher on Monday March 30. Crude palm oil (CPO) surged, supported by a combination of bullish external cues and solid fundamentals. Meanwhile, soyoil futures climbed on the Chicago Mercantile Exchange mainly supported by stronger energy prices and by a bullish sentiment on new US renewable fuels targets announced on Friday March 27.
The publication of Fastmarkets' FOB Indonesia prices for crude palm kernel oil and refined bleached deodorised (RBD) palm kernel olein, oil and stearin for Monday March 30 was delayed due to a reporter error. Fastmarkets’ pricing database has been updated.
It has become increasingly clear in the week to Friday March 27 that, with new-crop wheat and corn prices beginning to emerge in Ukraine, the typical discount to old-crop prices was no longer present, Fastmarkets has heard.
Strong demand pushed European biofuel feedstock prices further up during the week ending Thursday March 19, with sources reporting used cooking oil (UCO) trading at a €20 per tonne premium to last week’s levels, while category 3 animal fat prices moved up by €5-20 per tonne depending on the grade.
The biofuels market is transitioning from rapid growth to a focus on margin optimization, carbon intensity differentiation, and regulatory compliance, driven by low-carbon policies in the US and EU that are reshaping feedstock demand, trade flows, and pricing dynamics.
Fastmarkets proposes to discontinue daily price assessments for Rapemeal FOB ARAG RMP € per mt, Sunoil CPT Ukraine Danube $ per mt; Corn FOB Ukraine Handy $ per mt; and Corn FOB Ukraine Handy Premium c$ per bu.