# Strong demand supports prices for vegetable oils at a high level

> Vegetable oil prices held at high levels as China shifted purchases away from US oilseed products toward other origins. Indonesia raised its crude palm oil export duty by $5 to $55 per tonne from June 1 to fund its B30 biodiesel mandate, while Malaysia cut its export duty to zero. Chicago soybean oil traded near $608 per tonne and Ukrainian and Russian sunflower oil were quoted at $740-760 FOB.

- Date: 2020-06-02 · published 2020-06-02T12:00:00.000Z
- Category: policy · region Global · magnitude medium
- Page: https://feedsoft.ai/events/6049-strong-demand-supports-prices-for-vegetable-oils-at-a-high-level
- Commodities: [Soybean Oil](https://feedsoft.ai/c/SBO.md), [Palm Oil](https://feedsoft.ai/c/PALMOIL.md)

## Why it matters

Indonesia's higher export levy and biodiesel mandate tighten palm and soy oil supplies, supporting vegetable oil prices and lifting the cost of oil-based feed ingredients.

## Read by commodity

- SBO: bullish ▲
- PALMOIL: bullish ▲

## Linked price moves

| Commodity | Date | Window | Change % | z-score | Why linked |
| --- | --- | --- | --- | --- | --- |
| PALMOIL | 2020-06-02 | 5 | +12.9% | 3.7 | Strong vegetable oil demand, China's shift away from US oilseed products, Malaysia's zero export duty and Indonesia's B30-funding duty increase all supported palm and vegetable oil prices at a high level. |
| PALMOIL | 2020-06-01 | 1 | +8.5% | 5.5 | Indonesia's $5 export duty hike from June 1 to fund B30 biodiesel, Malaysia's duty cut to zero and strong vegetable oil demand are bullish for palm prices, though the report is dated a day after the move. |

## Similar past events

| Commodity | Date | Event | 5-day % | 20-day % |
| --- | --- | --- | --- | --- |
| SBO | 2022-08-11 | [Vegetable oils: Supply stress and biofuel blending mandates drive demand for soybean oil - Fastmarkets](https://feedsoft.ai/events/40126-vegetable-oils-supply-stress-and-biofuel-blending-mandates-drive-demand-for.md) | -1.9% | +0.4% |
| SBO | 2022-07-06 | [Biofuels Are Driving up Already High Vegetable Oil Prices](https://feedsoft.ai/events/15381-biofuels-are-driving-up-already-high-vegetable-oil-prices.md) | -0.8% | +0.5% |
| SBO | 2021-08-27 | [ABA: Demand for soybean oil and other vegetable oils has exceeded supply while prices have skyrocketed  \| Snack Food & Wholesale Bakery](https://feedsoft.ai/events/45654-aba-demand-for-soybean-oil-and-other-vegetable-oils-has-exceeded-supply-while.md) | -1.8% | -4.6% |
| SBO | 2025-06-18 | [Sharp rise in soybean oil and crude oil quotes in Chicago supported vegetable oil prices](https://feedsoft.ai/events/5345-sharp-rise-in-soybean-oil-and-crude-oil-quotes-in-chicago-supported-vegetable.md) | -3.8% | -0.3% |
| SBO | 2026-06-30 | [How Rising Biofuel Demand Impacts Vegetable Oil Markets](https://feedsoft.ai/events/18889-how-rising-biofuel-demand-impacts-vegetable-oil-markets.md) | +1.3% | +1.8% |
| PALMOIL | 2022-08-11 | [Vegetable oils: Supply stress and biofuel blending mandates drive demand for soybean oil - Fastmarkets](https://feedsoft.ai/events/40126-vegetable-oils-supply-stress-and-biofuel-blending-mandates-drive-demand-for.md) | +1.5% | -11.2% |
| PALMOIL | 2022-07-06 | [Biofuels Are Driving up Already High Vegetable Oil Prices](https://feedsoft.ai/events/15381-biofuels-are-driving-up-already-high-vegetable-oil-prices.md) | -1.3% | -9.0% |
| PALMOIL | 2026-06-30 | [How Rising Biofuel Demand Impacts Vegetable Oil Markets](https://feedsoft.ai/events/18889-how-rising-biofuel-demand-impacts-vegetable-oil-markets.md) | -0.5% | +0.3% |

## Sources

- graintrade.com.ua: https://graintrade.com.ua/en/novosti/aktivnij-popit-pidtrimue-tcini-na-roslinni-olii-na-visokomu-rivni.html

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Data from Feedsoft AI (https://feedsoft.ai/). For information only; not investment advice.