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Vegoils futures closed the week broadly lower on Friday.
Crude palm oil (CPO) futures extended losses to close near week-earlier levels with gains from Wednesday mostly erased in the short trading week as weaker related oils continued to weigh, while participants took position ahead of the weekend with focus next on next Wednesday’s May demand data release from the Malaysian Palm Oil Board (MPOB). On the Chicago Mercantile Exchange (CME), soyoil futures declined sharply, pressured by falling crude oil, legal challenges to rising US biofuel mandates and profit-taking.
The most-active August CPO futures contract on the Bursa Malaysia Derivatives fell by 1.02% to close at 4,554 ringgit ($1,131) per tonne after trading between 4,522-4,611 ringgit per tonne with the contract remaining mostly in negative territory for most of the day.
On a weekly basis, the third month contract has increased by 0.42% from last Friday’s settlement of 4,535 ringgit per tonne, extending its weekly rise for a third straight week, though most of the gains made earlier in the week were pared by Friday with pressure coming from a sell-off in CME soybean oil futures and Chinese vegoils.
Crude oil prices have also edged lower through the week though movement has remained volatile amid headlines over peace talks and attacks in the Middle East.
On the currency side, the Malaysian ringgit weakened against the US dollar for a third consecutive session on Friday, touching a two-month low and limiting some of the downside for CPO futures. The currency has declined 1.6% over the short trading week and is now broadly unchanged year-to-date, following a sharp appreciation earlier in February.
Chinese vegoil futures fell across the board on Friday, with the September palm olein futures contract on the Dalian Commodity Exchange falling by over 300 yuan per tonne to close at 9,382 yuan ($1,387) per tonne, while the equivalent soybean oil contract also fell by 1.32% to 8,440 yuan per tonne.
The September rapeseed oil futures contract on the Zhengzhou Commodity Exchange also fell by over 300 yuan per tonne to close at 9,990 yuan per tonne after trading above 10,000 yuan per tonne the last two days, erasing gains amid pressure from the wider vegoil complex and lack of stronger buying momentum.
Meanwhile, private brokerage UOB Kay Hian estimated Malaysia’s May production at 6-10% below April levels after the BMD close, while estimates from the Malaysian Palm Oil Association (MPOA) were still pending ahead of the MPOB data release on June 10.
This was a larger drop compared to average estimates from newswire polls of a 4-5% decline, which if true could soften the expected build-up in May inventories with exports expected to fare poorer in May compared to April.
In the cash market, offers for CPO out of Indonesia were at $1,190-1,210 per tonne FOB Indonesia for June shipment, with buying ideas at $1,180-1,187.50 per tonne FOB Indonesia, while July offers were at $1,200 per tonne FOB Indonesia with buying ideas around $1,185 per tonne FOB Indonesia.
Offers for olein were around $1,130-1,140 per tonne FOB Indonesia for July shipment with buying ideas at $1,105-1,115 per tonne FOB Indonesia.
Olein was also traded to China at $1,213-1,216 per tonne CFR for December on Friday.
CPO trades to India for June shipment were also concluded at $1,230 per tonne CFR west coast India and at $1,220 per tonne CFR east coast India earlier in the day, with offers toward the day’s close at $1,230-1,240 per tonne CFR WCI and buying ideas at $1,222.50-1,230 per tonne CFR WCI, also for June.
Soybean oil was also traded to India for August-September shipment at $1,260-1,265 per tonne CFR WCI earlier in the day, with offers around $1,267-1,272 per tonne CFR WCI in the evening and heard edging lower after Fastmarkets’ assessment time. Offers for July shipment were around $1,272-1,280 per tonne CFR WCI, while October-December shipment soybean oil was offered around $1,275-1,280 per tonne CFR WCI.
Sunflower oil from Argentina was also offered around $1,390 per tonne CIF India for July and August shipment, while Black Sea-origin sunflower oil was offered around $1,430 per tonne CIF LW for shipment in June-July.
In the Americas, CME soyoil futures extended losses from the previous session on Friday, pressured mainly by declining crude oil prices, while legal challenges to rising US biofuel blending mandates and profit-taking following recent record highs added further downward pressure.
The most-active July CME soybean oil contract fell by 2.84% day on day to 74.12 cents per lb.
Falling crude oil futures continued to weigh on soyoil amid prospects of progress in US-Iran talks, after US President Donald Trump said negotiations were advancing, despite Hezbollah having rejected a US-backed ceasefire proposal.
Market participants continued to adjust positions through technical selling following a sharp rally in prices, which had been underpinned by bullish demand expectations for US feedstocks amid higher blending mandates and rising Renewable Identification Number (RIN) values.
The American Fuel and Petrochemical Manufacturers (AFPM) filed a lawsuit on May 29 challenging the US Environmental Protection Agency’s 2026-2027 Renewable Fuel Standard “Set 2” mandates, arguing that higher biofuel blending requirements will raise compliance costs and fuel prices.
The move came as biodiesel RINs reached record highs, with compliance costs exceeding 35 cents per gallon.
The EPA’s final rule significantly increases biomass-based diesel and advanced biofuel obligations, and AFPM estimates total compliance costs could surpass $106 billion over two years, warning that stronger demand for credits could deplete the RIN bank by 2027.
Meanwhile, CME soymeal futures also declined on Friday, mainly driven by a sharp drop in corn and wheat prices, which pressured soybean futures during the session. Product spreading against weaker soyoil limited further losses.
The USDA said that 190,000 tonnes of US soymeal were delivered to the Philippines in the 2025/26 marketing year.
The most-active July CME soymeal contract fell by 1.66% day on day to $308.50 per short ton.
In the physical market in South America, soyoil bases moved sharply higher on Friday from Fastmarkets’ previous assessment on Wednesday June 3, before the holiday in Brazil, because of lower CME soyoil futures.
The July basis in Argentina was assessed at a discount of 21.3 cents per lb to July futures, up by 3.85 cents per lb from Wednesday’s assessment, while the corresponding basis in Brazil was assessed at a discount of 21 cents per lb to July futures, up by 3.5 cents per lb from the previous assessment.
On the soymeal front, the July basis in Brazil rose by $2.50 per short ton compared with the previous assessment, at a discount of $6 per short ton to July futures.In Argentina, the corresponding soymeal basis increased by $1 per short ton from the previous assessment to a discount of $8.50 per short ton to the same futures contract.
As of 5:50pm Central European Time, Euronext August rapeseed futures were trading at €522 ($603) per tonne, down by €1 per tonne from the last market close.
FOB Rotterdam rapeseed oil (RSO) prices were mixed along the curve on Friday amid softer moves across the wider vegetable oils complex, with palm oil in Malaysia dipping on the day and US soybean oil futures weaker at the time of writing.
RSO values also tracked declines in both Paris rapeseed futures and Canadian canola futures during the session, which eased alongside a weaker energy complex as crude oil grades slipped on the day.
For July volumes, offers were heard at €1,260 per tonne, with bids at €1,225-1,230 per tonne.
For August, offers were indicated at €1,162-1,167 per tonne, with bids at €1,150 per tonne, while for the August-September-October (ASO) strip offers were reported at €1,160 per tonne, with buy-side interest at €1,150-1,153 per tonne.
Down the curve, November-December-January (NDJ) 2027 offers were heard at €1,160 per tonne, with bids mostly ranging €1,150-1,153 per tonne.
Prices for FOB sunflower oil (SFO) across six EU ports saw only marginal changes along the curve on Friday, with market activity remaining very limited for nearby periods.
Market rumours circulated about possible trades for the October–November–December (OND) period at $1,405 per tonne, although these were not confirmed by the time of publishing.
For the July-August-September (JAS) period, offers were reported at $1,510-1,515 per tonne, with bids at $1,490 per tonne.
As for the OND window, offers were heard at $1,410 per tonne, with buy-side interest reported at $1,390-1,400 per tonne.
On a CIF Mersin basis, the sunflower oil market remained completely quiet, with no indications heard from either buyers or sellers.
Fastmarkets’ comprehensive coverage includes a wide range of veg oils and meals, including palm, coconut, cottonseed, peanut, sunflower and canola. Our dedicated team of price reporters and analysts monitors these markets daily to provide you with the most up-to-date pricing information.